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Spursh Parikh
www.sererra.com
ACTIVE
Network (NYSE: ACTV), the leader in cloud-based Activity and
Participant Management™ (APM) solutions, today announced its financial
results for the fourth quarter and fiscal year ended December 31, 2012.
Q4 2012 Financial Highlights:
(All comparisons are made to the fourth quarter of 2011)
Total net revenue up 23% to $93.7 million.
Technology revenue increased 25% and constituted 88%, or $82.0
million, of total net revenue.
Net registration revenue increased 20% to $55.8 million with the
number of registrations up 7% and the revenue per registration up 13%.
Marketing services revenue constituted 12%, or $11.6 million, of total
net revenue.
Net loss was $14.3 million compared to a net loss of $8.5 million.
Adjusted EBITDA, a non-GAAP financial measure, was $5.9 million up
from $0.4 million in 2011 (Adjusted EBITDA in 2011 included $1.9
million of severance costs associated with the acquisition of
StarCite).
Fiscal Year 2012 Financial Highlights:
(All comparisons are made to fiscal year 2011)
Total net revenue up 24% to $418.9 million.
Technology revenue increased 28% and constituted 88%, or $370.5
million, of total net revenue.
Net registration revenue increased 21% to $275.8 million with the
number of registrations up 12% and the revenue per registration up 8%.
Approximately 55,000 organizations utilized the Company’s technology
solutions, up 7%.
Marketing services revenue constituted 12%, or $48.4 million, of total
net revenue.
Net loss was $43.0 million compared to a net loss of $27.1 million.
Adjusted EBITDA, a non-GAAP financial measure, was $38.4 million.
Excluding the impact of business combination accounting rules related
to deferred revenue, Adjusted EBITDA was $50.8 million.
“In 2012, we achieved the key technology milestones we established at
the beginning of the year. Our first Hunting and Fishing customer went
live on our ActiveWorks® platform, we made strong progress in
transitioning our Endurance customers onto ActiveWorks®, and we
delivered on our data center consolidation targets. We continue to drive
innovation and adoption of our horizontal ActiveWorks® platform,”
commented Executive Chairman of ACTIVE Network, Dave Alberga.
“We delivered 23% revenue growth in the fourth quarter and 24% for the
full year 2012,” added Matt Landa, CEO of ACTIVE Network. “In the fourth
quarter, our cross-selling efforts gained momentum as we brought in a
number of Fortune 500 customers that now use our combined Strategic
Meetings Management and Conference solution. We generated positive
operating cash flow of $27 million and ended the year with a strong
balance sheet. As we enter 2013, I am excited about our leading market
position and our ability to capitalize on new opportunities. During the
year, we will continue to make targeted investments in our sales
capabilities to drive increased adoption of our APM technology.”
Q4 2012 Key Business Highlights
Marquee customer highlights included wins from City of Santa Monica,
San Antonio YMCA, and Sun Valley Resort and strong technology
successes with Loews Hotels and Nestlè.
ACTIVE launched Registration Protector in partnership with Allianz
Global to protect registration fees for both event organizers and
participants when participants can’t show up on race day.
ACTIVE Access, a new enhanced developer center, brought together all
aspects of ACTIVE Network's distribution offerings in a single,
user-friendly site, developer.active.com.
Internationally, ACTIVE expanded its footprint announcing that it has
become the exclusive technology partner for RUN Ireland, the largest
source for running events in that region.
We extended our ActiveWorks Endurance platform to Australia in October
and are experiencing strong initial adoption.
Financial Outlook
First Quarter 2013 - For the first quarter of 2013, ACTIVE
Network expects total revenue to be in the range of $102 million to $107
million. Registrations are expected to grow approximately 2% to 7% and
revenue per registration is expected to grow approximately 7% to 9%
compared to the same period in the prior year. The Company expects
Adjusted EBITDA in the range of $2 million to $5 million. The Company
expects a net loss of $21 million to $17 million.
Full Year 2013 - Active Network reiterated financial guidance for
full year 2013. Total revenue is expected to be in the range of $470
million to $480 million and Adjusted EBITDA is expected to be in the
range of $50 million to $54 million. The Company expects a net loss of
$38 million to $31 million.
“Our fourth quarter results were in-line with our guidance - as
registrations, one of our main drivers, accelerated 7% and revenue per
registration grew 13% from the prior year period,” said Scott Mendel,
CFO of ACTIVE Network. “During 2012, approximately 55,000 organizations
used our technology solutions to manage their events and activities, up
7% over 2011.”
Conference Call Information
ACTIVE Network will host a conference call to discuss fourth quarter and
fiscal year 2012 results today at 4:30 p.m. Eastern Time (1:30 p.m.
Pacific Time). The conference call dial-in number is (800) 573-4840 for
domestic participants and (617) 224-4326 for international participants.
A live webcast of the conference call will also be available and can be
accessed within the investor relations section of the ACTIVE
Network corporate website at: http://investors.ACTIVEnetwork.com.
A replay of the call will be available starting at 6:30 p.m. Eastern
Time (3:30 p.m. Pacific Time) on February 14, 2013 through 11:59 p.m.
Eastern Time (8:59 p.m. Pacific Time) on February 21, 2013. To listen to
the replay, dial (888) 286-8010 or (617) 801-6888 outside of the United
States and use the passcode 38594946. The replay will also be available
via webcast at: http://investors.activenetwork.com/.
About ACTIVE Network
ACTIVE
Network (NYSE: ACTV) is on a mission to make the world a more active
place. With deep expertise in Activity and Participant Management™
(APM), our ACTIVE Works® cloud technology helps organizations transform
and grow their businesses. We do this through technology
solutions that power the world’s activities, as well as online
destinations such as ACTIVE.com®
that connect people with the things they love to do. Serving over 50,000
global business customers and driving over 80 million transactions
annually, we help organizations get participants, manage their events
and build communities. ACTIVE Network is headquartered in San Diego,
California and has over 30 offices worldwide. Learn more at ACTIVEnetwork.com
or ACTIVE.com
and engage with us on Twitter @ACTIVEnetwork,
@ACTIVE
and on Facebook.
Note With Respect to Non-GAAP Financial Measures
In addition to using GAAP financial results, the Company's management
measures and reports non-GAAP financial measures, including Adjusted
EBITDA, Non-GAAP net income (loss) and Non-GAAP net income (loss) per
share. The most directly comparable GAAP financial results for these
non-GAAP financial measures are Net income (loss), Net income (loss) and
Net income (loss) per share, respectively. Management uses these
non-GAAP financial measures to evaluate the Company's performance and
operations. Management also uses these non-GAAP financial measures for
business planning, to evaluate acquisition opportunities and as a
measurement to create incentives and to compensate the Company's
management team. In addition, management believes the exclusion or
inclusion of certain amounts in calculating these non-GAAP financial
measures can provide a useful measure to investors for period-to-period
comparisons. These non-GAAP financial measures, however, should be used
in addition to, and in conjunction with, the Company's financial results
presented in accordance with GAAP. The Company strongly encourages
investors to review its financial statements in their entirety and to
not rely on any single financial measure. Because non-GAAP financial
measures are not standardized, it may not be possible to compare the
Company's results with other companies' non-GAAP financial measures
having the same or similar names. Please see Reconciliation of GAAP to
Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP
financial measures.
Forward-Looking Statements
The Active Network, Inc. cautions you that the statements included in
this press release that are not a description of historical facts are
forward-looking statements within the meaning of the federal securities
laws. Any such statements are subject to substantial risks and
uncertainties, including the Company's ability to generate revenue and
control expenses in order to achieve and maintain profitability, the
Company's ability to maintain an adequate rate of growth, including
growing its registrations and revenue from registrations, and the
Company's ability to successfully manage its acquisitions and
investments in businesses, applications and technologies, as well as the
other risks detailed from time to time in the reports it files with the
Securities and Exchange Commission. As a result of these risks and
uncertainties, the Company's actual results may differ materially from
those expressed in any forward-looking statements. You are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date hereof. All forward-looking statements are qualified
in their entirety by this cautionary statement and the Company
undertakes no obligation to revise or update this press release to
reflect events or circumstances after the date hereof.
Accretion of redeemable convertible preferred stock
-
-
-
(11,810
)
Net loss attributable to common stockholders
$
(14,341
)
$
(8,482
)
$
(43,026
)
$
(27,137
)
Net loss per share attributable to common stockholders:
Basic and diluted
$
(0.24
)
$
(0.16
)
$
(0.73
)
$
(0.75
)
Weighted-average shares used to compute net loss
per share attributable to common stockholders:
Basic and diluted
60,423
54,109
58,804
36,072
THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31,
December 31,
2012
2011 (1)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
58,493
$
108,699
Restricted cash
1,145
1,502
Registration receivable
16,260
14,006
Accounts receivable, net
51,363
52,463
Inventories
4,809
1,662
Prepaid expenses and other current assets
8,922
7,509
Total current assets
140,992
185,841
Property and equipment, net
41,236
33,830
Software development costs, net
51,151
45,093
Goodwill
243,716
243,320
Intangible assets, net
62,806
90,340
Other long-term assets
2,569
2,133
Total assets
$
542,470
$
600,557
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
8,174
$
8,516
Registration fees payable
61,272
72,405
Accrued expenses
38,865
41,106
Deferred revenue
66,846
54,919
Current portion of long-term debt
–
5,000
Capital lease obligations, current portion
2,774
3,317
Other current liabilities
4,373
42,613
Total current liabilities
182,304
227,876
Capital lease obligations, net of current portion
2,462
1,652
Other long-term liabilities
6,192
6,147
Deferred tax liability
19,065
18,243
Total liabilities
210,023
253,918
Stockholders’ equity:
Common stock
62
58
Treasury stock
(11,959
)
(11,959
)
Additional paid-in capital
653,694
625,875
Accumulated other comprehensive income
8,934
7,923
Accumulated deficit
(318,284
)
(275,258
)
Total stockholders’ equity
332,447
346,639
Total liabilities and stockholders’ equity
$
542,470
$
600,557
(1) Includes adjustment to the 12/31/11 balance sheet for comparability.
The Company has concluded that certain deferred tax assets should have
been recorded as current assets in the financial statements for the
period ended December 31, 2011 which results in an increase in other
current assets and a corresponding increase in Deferred tax liability of
$1,330.
THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Twelve Months Ended
December 31,
2012
2011
Operating activities
Net loss
$
(43,026
)
$
(15,327
)
Adjustments to reconcile net loss to net cash provided
by operating activities:
Depreciation and amortization of property and equipment
33,343
24,386
Amortization of intangible assets
27,972
20,471
Stock-based compensation expense
16,728
7,795
Deferred income taxes
1,370
(5,016
)
Other non-cash items
(2,669
)
174
Change in operating assets and liabilities, net of effect of
acquisitions:
Restricted cash
357
4,190
Registration receivable
(2,254
)
(5,378
)
Accounts receivable
1,849
(6,961
)
Inventories
(3,147
)
(1,662
)
Prepaid expenses and other assets
(2,512
)
1,071
Accounts payable and accrued expenses
(3,141
)
887
Registration fees payable
(11,133
)
31,738
Deferred revenue
11,894
6,400
Other liabilities
1,921
2,935
Net cash provided by operating activities
27,552
65,703
Investing activities
Purchases of property and equipment
(17,765
)
(12,514
)
Capitalized software development
(23,026
)
(18,651
)
Cash paid for acquisitions, net of cash acquired
(38,175
)
(35,144
)
Payment of contingent consideration
-
(625
)
Net cash used in investing activities
(78,966
)
(66,934
)
Financing activities
Proceeds from issuance of common stock and
repurchase of unvested common stock
10,955
5,187
Payments on capital lease obligations
(4,730
)
(2,595
)
Proceeds (repayment) of long-term debt
(5,000
)
(36,628
)
Net proceeds from initial public offering
-
112,566
Net cash provided by financing activities
1,225
78,530
Effect of exchange rates on cash
(17
)
(41
)
Net increase (decrease) in cash and cash equivalents
(50,206
)
77,258
Cash and cash equivalents at beginning of period
108,699
31,441
Cash and cash equivalents at end of period
$
58,493
$
108,699
THE ACTIVE NETWORK, INC.
SUPPLEMENTARY DATA
(In thousands, except revenue per registration)
(Unaudited)
Operational Data:
Three Months Ended
Twelve Months Ended
December 31,
%
December 31,
%
2012
2011
change
2012
2011
change
Organizations
n/a
n/a
n/a
54.9
51.3
7
%
Net registration revenue
55,750
46,386
20
%
275,826
228,453
21
%
Registrations
18,434
17,305
7
%
89,900
80,274
12
%
Net registration revenue per registration
$
3.02
$
2.68
13
%
$
3.07
$
2.85
8
%
GAAP and Non-GAAP Gross Profit Margin:
Three Months Ended
% or
Twelve Months Ended
% or
December 31,
bps
December 31,
bps
2012
2011
change
2012
2011
change
Total net revenue
$
93,672
$
76,045
23
%
$
418,893
$
337,390
24
%
Add: impact of business combination
accounting rules
1,512
703
12,373
1,471
Non-GAAP total net revenue
$
95,184
$
76,748
24
%
$
431,266
$
338,861
27
%
GAAP gross profit
$
49,148
$
39,358
25
%
$
227,074
$
186,476
22
%
Add back: stock-based compensation
183
61
657
168
Add back: depreciation & amortization
8,980
6,722
32,708
23,518
Add: impact of business combination
accounting rules
1,512
703
12,373
1,471
Non-GAAP gross profit
$
59,823
$
46,844
28
%
$
272,812
$
211,633
29
%
Gross profit margin:
GAAP gross profit margin
52.5
%
51.8
%
70 bps
54.2
%
55.3
%
(110) bps
Non-GAAP gross profit margin
62.8
%
61.0
%
180 bps
63.3
%
62.5
%
80 bps
Stock-Based Compensation Expense:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2012
2011
2012
2011
Cost of net revenue
$
183
$
61
$
657
$
168
Sales and marketing
1,054
373
3,763
1,413
Research and development
622
279
2,404
915
General and administrative
2,877
2,300
9,904
5,299
Total stock-based compensation
$
4,736
$
3,013
$
16,728
$
7,795
THE ACTIVE NETWORK, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share data)
(Unaudited)
Non-GAAP Earnings:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2012
2011
2012
2011
Non-GAAP net (loss) income:
GAAP net loss
$
(14,341
)
$
(8,482
)
$
(43,026
)
$
(15,327
)
Add back: stock-based compensation
4,736
3,013
16,728
7,795
Add back: amortization of intangibles
6,840
5,161
27,972
20,471
Add: impact of business combination accounting rules
1,512
703
12,373
1,471
Income tax effect
(4,581
)
(3,107
)
(19,976
)
(10,408
)
Non-GAAP net (loss) income
$
(5,834
)
$
(2,712
)
$
(5,929
)
$
4,002
Non-GAAP shares:
GAAP shares - basic
60,423
54,109
58,804
36,072
Add: preferred stock conversion
-
13,663
Non-GAAP shares - basic
60,423
54,109
58,804
49,735
GAAP shares - diluted
60,423
54,109
58,804
36,072
Add: preferred stock and other securities conversion
-
22,598
Non-GAAP shares - diluted
60,423
54,109
58,804
58,670
Non-GAAP net (loss) income per share:
Basic
$
(0.10
)
$
(0.05
)
$
(0.10
)
$
0.08
Diluted
$
(0.10
)
$
(0.05
)
$
(0.10
)
$
0.07
Adjusted EBITDA:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2012
2011
2012
2011
Net loss
$
(14,341
)
$
(8,482
)
$
(43,026
)
$
(15,327
)
Add back: interest expense, net
170
63
577
2,771
Add back: provision (benefit) for income taxes
(1,082
)
(6,564
)
3,980
(4,074
)
Add back: depreciation and amortization
16,188
12,203
61,315
44,857
Add back: stock-based compensation
4,736
3,013
16,728
7,795
Add back: other (income) expense, net
206
123
(1,157
)
14
Adjusted EBITDA
$
5,877
$
356
$
38,417
$
36,036
Add: acquisition-related severance costs
-
1,977
-
1,977
Add: impact of business combination accounting rules
1,512
703
12,373
1,471
Adjusted EBITDA excluding the impact of
acquisition-related severance costs and
business combination accounting rules
$
7,389
$
3,036
$
50,790
$
39,484
THE ACTIVE NETWORK, INC.
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Back in the good old 1990s we were actually concerned with software application performance factors such as processing power clock speed along with system memory and storage. While memory is still an important determining factor, the questions of microprocessor megahertz and total syst...
By working with IT across the software development lifecycle via cloud-based DevOps, development teams can decrease software bottlenecks, increase code output and be seen as drivers of the business.
I have a confession. I am Shadow IT. I am the guilty party operations and security lo...
Precautions to safeguard client data & infrastructure is an MSPs responsibility-this extends beyond client's sphere of access to MSP employees & consultants. MSPs must employ some degree of security to cover their own access, not just that of their clients.
A man walks into the doctor...
A few months ago experts predicted 2013 would be the Year of Big Data. To a large extent, those predictions have been spot on, with big data investment on the rise and success stories emerging across a variety of industries from insurance to pharma to professional basketball.
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In Part 1 I talked about how there’s nothing new about subscription services since they’ve been around for generations.
Now I’ll relent a little and admit that there is something new about many of the subscription services out there. What’s new is what is no longer there. Traditionall...
