● | Further diversified and strengthened our Board of Directors with the appointment of our eighth member, Lorraine Hariton, CEO of Catalyst, who brings to Quotient significant leadership expertise. |
● | Launched our Promotion Amplification Tool, a patent-pending innovative solution that utilizes retailer data with weekly temporary price reduction (TPR) pricing feeds to target and automate digital media to the right audiences at the right time. |
● | Continued to strengthen and deepen our customer and partner relationships with quarterly business reviews and strategic planning meetings. We remain focused on honing our already robust sales processes and addressing each advertiser and retailer’s unique challenges and key performance indicators (KPIs) by proposing the right solutions for the best return on investment (ROI) results. |
● | Signed a new retailer in the grocery vertical and expanded on existing relationships with two of our partners. Retailers continue to see value in our solutions and one-stop holistic approach—adding on offerings, such as in-lane and promo amplification, to have a truly robust omnichannel platform while benefitting from increased alternative revenue streams. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 2 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 3 |
● | In Q1 2021, we experienced 103% growth in the number of “long-tail” CPG customers, along with an increase of over 400% in bookings on a dollar basis over Q1 2020 for this segment. We believe we will see this trend continue throughout the year. |
● | National promotions, one of the areas hardest hit in the beginning of the pandemic and through most of last year, continued to bounce back with 23% growth in bookings on a dollar basis in Q1 2021 over the prior year. Additionally, as noted above, we are seeing continued strong momentum for national promotions in Q2. As customers have noted publicly, we expect that this should increase in the later quarters of this year as brands adjust towards pre-pandemic levels of promotional spend. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 4 |
● | In terms of national media, we saw a decrease of 4% in bookings on a dollar basis in the first quarter over the prior year as advertisers dedicated more spend to shopper media campaigns. With national media being a strategic focus area of our business along with the restructuring we did of our sales organization, we believe that, over time, we will see increased sales in this area, especially with more customers looking to implement integrated national promotion and media campaigns. |
● | With our new national promotion sales launch, our dedicated and focused sales team and the number of brands looking to deploy national promotional and media campaigns, we believe we will see growth in national campaigns in the upcoming quarters and beyond. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 5 |
● | We continue to see demand for our Retailer Performance Media (RPM) platform. |
o | In Q1 2021, we saw an increase of 156% in bookings dollars from our customers utilizing RPM versus the prior year. |
o | Quotient RPM retailers saw approximately a 175% increase in alternative revenue streams in the first quarter (excluding revenue from our Retailer Promotions Platform, which many of these retailers also utilize) as compared to Q1 2020. We continue to focus on growing this number as more retailers roll out RPM and existing retailers add on more of our digital solutions that drive increased sales and measurable ROIs. |
● | We currently have one retailer employing our in-lane offering and recently signed our second retailer to the platform, a major drug chain who will be launching with our in-lane solution in 2H 2021—with more retailers looking to roll out this offering in the coming months and quarters. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 6 |
● | Momentum is growing for collaborative spend programs, where retailers look to advertisers or brands to commit a meaningful percentage of total spend on their digital platforms powered by Quotient. Our top three retailers who employ collaborative spend programs continue to see success, and based on the results thus far, we believe retailers and brands will continue to work together in a similar model going forward. Additionally, we believe there is potential for growth for more of these programs as they are still in their nascent stages with many retailers just beginning to shift to more effective and efficient ways to get the most out of their digital platforms. |
● | We launched our promotion amplification tool with Ahold Delhaize USA’s digital, eCommerce and commercial engine, Peapod Digital Labs. AD Retail Media, Ahold’s branded RPM solution powered by Quotient, is the first in the industry to offer our new tool, which makes promotions and savings more easily accessible to all consumers. We are already seeing demand for this solution from customers as well as from current and potential new retail partners. We believe this is a game changer for retailers and brands to capture additional measurable sales from TPRs while eliminating inefficiencies that have been a part of this industry for decades. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 7 |
● | In the first quarter of 2021, we saw 24% growth in revenue, and a 23% increase in the number of total social campaigns launched with the average campaign larger by 8%—all percentages are compared to the prior year period. |
● | In Q1 2021, our non-influencer social business was up over three times compared to the prior year as customers value the speed of execution and flexibility of this solution for last-minute planning. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 8 |
● | As noted last quarter, we believe our social solutions will become a larger part of our clients’ media playbooks. Early indications of momentum for our social solutions in Q2 and our social solutions pipeline for the upcoming quarters lead us to believe that this trend will continue. |
● | At the end of Q1 2021 we had inventory of over 194,000+ screens nationwide. This translates to over 6.8+ billion weekly impressions that we can transact on at any given moment. We continue to see this number increase as we onboard more screens each quarter to grow our inventory and supply to maximize reach and opportunities for our clients. We are currently seeing traffic from 86 vendors/publishers, and this number is slated to climb with more vendors being added to the queue to be onboarded in the coming weeks. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 9 |
● | With our recently announced new movement dashboard, we are able to demonstrate DOOH’s ability to connect with shoppers dynamically at expanded vaccination centers such as drug, grocery and doctor’s offices as traffic in these locations scales nationwide. Our successful, recently executed campaigns in these areas are helping fuel the growing momentum and shape what we believe will be a solid 1H and balance of the year for DOOH. |
● | Since its launch, we have seen approximately 125 CPGs activate on the platform. As a continuation of the trend we noted last quarter, momentum continues to grow—with customers adding this offering as part of their national promotion campaigns. |
● | Our National Rebates Solution, paired with our new national promotions sales methodology, provides brands of all sizes with a true digital option that allows them to shift spend away from offline channels, primarily the FSI and paper circulars, to online—a more efficient and measurable format resulting in higher ROIs. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 10 |
● | Since launching in mid-March 2021, we saw 5 advertisers activate this solution with early indications of a strong pipeline for the rest of FY 2021 for this tool. Alhold Delhaize USA’s, Peapod Digital Labs, our inaugural retail partner, is utilizing this offering on their RPM platform. |
● | We believe we will continue to see demand for this solution throughout the upcoming quarters and year as we have more discussions with brands and retailers on how they can implement this tool and start capitalizing on previously missed sales opportunities. |
● | Sponsored search momentum continued in Q1, with the number of advertisers who booked a sponsored search campaign increasing approximately 6% compared to Q4 2020. We have seen consistent quarter-over-quarter growth in bookings for this offering since adding it to our platform and believe demand will continue as shoppers have adopted mixed-mode shopping—complementing in-store with online purchasing. We have several innovations for this platform that are slated to be released in the next two quarters. We believe these innovations will further accelerate the growth and success of Quotient sponsored search. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 11 |
● | As illustrated in the graph below, the number of redemptions from our eCommerce channel increased 19% in Q1 2021 compared to Q4 2020 as consumers continue to utilize online grocery sales channels—although at a slower pace than during the height of the pandemic. This is a continuation of the trend we have seen over the last few quarters; however, growth in online redemptions still remains higher than the overall increase in the number of total redemptions, which includes in-store. This increased redemption of promotions is also in alignment with the seasonality we tend to see in the first quarter of the year. |
● | According to a recent report by Mercatus, approximately 90% of online shoppers will continue to shop online in the future. However, the report also showed that more than four-fifths of consumers (or 87%) are satisfied with their preferred brick-and-mortar retailer and plan to stay loyal during future shopping trips. The need for brands and retailers to be prepared to meet the expectations of both audiences is another reason, in our view, to leverage Quotient to provide consistent shopping experiences whenever and wherever the shopper chooses to shop. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 12 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 13 |
Steven Boal Chief Executive Officer | Pamela Strayer Chief Financial Officer |
● | We delivered revenue of $115.3 million, up 17% over Q1 2020 on a GAAP basis. |
● | Excluding approximately $9 million from a portion of our media business that was exited in Q3 2020, revenue growth was 29% over Q1 2020. |
● | GAAP gross margin was 37.6%, compared to 38.1% in Q1 2020. |
● | Non-GAAP gross margin was 43.7%, compared to 45.1% in Q1 2020. |
● | GAAP operating expenses were 45.6% of revenue, compared to 51.8% of revenue in Q1 2020. |
● | Non-GAAP operating expenses were $45.5 million and 39.4% of revenue, compared to the prior year of $41.1 million and 41.6% of revenue. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 14 |
● | We recorded a GAAP net loss of $13.4 million, compared to a net loss of $16.7 million in Q1 2020. The decrease in GAAP net loss from the prior year was due primarily to a decrease in stock-based compensation, restructuring charges and a decrease in fair value of contingent consideration. Net Loss Per Share in the quarter was $0.15 compared to $0.19 in Q1 2020. |
● | Adjusted EBITDA was $6.8 million, representing a 5.9% margin. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 15 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 16 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 17 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 18 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 19 |
● | Revenue to be in the range of $117.0 million to $125.0 million. Predicting the mix of revenue between promotion and media remains difficult at this time. |
● | Adjusted EBITDA to be in the range of $2.0 million to $12.0 million. |
● | Operating cash flow to be in the range of $5.0 million to $10.0 million. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 20 |
● | We expect revenue to be in the range of $505.0 million to $525.0 million. |
● | We expect Adjusted EBITDA for the full year 2021 to be in the range of $50.0 million to $65.0 million. |
● | We expect weighted average diluted shares outstanding for 2021 to be approximately 97.1 million. |
● | Three Part Advisors Group Investor Call, May 14, 2021 |
● | Needham Virtual Technology & Media Conference, May 17-18, 2021 |
● | BMO Farm to Market Virtual Conference, May 20, 2021 |
● | BMO Virtual Retail Summit, May 27, 2021 |
● | Craig Hallum Institutional Investor Virtual Conference, June 2, 2021 |
● | NYSE Investor Access Virtual Technology Day, June 15, 2021 |
● | Goldman Sachs Inaugural Digital Economy Conference (Virtual), June 17, 2021 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 21 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 22 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 23 |
QUOTIENT TECHNOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) | |||||||
| March 31, 2021 |
| December 31, 2020 | ||||
| (unaudited) |
|
| ||||
Assets |
|
|
| ||||
Current assets: |
|
|
| ||||
Cash and cash equivalents | $ | 241,086 |
|
| $ | 222,752 |
|
Accounts receivable, net | 119,666 |
|
| 137,649 |
| ||
Prepaid expenses and other current assets | 13,682 |
|
| 18,547 |
| ||
Total current assets | 374,434 |
|
| 378,948 |
| ||
Property and equipment, net | 17,980 |
|
| 17,268 |
| ||
Operating leases right-of-use-assets | 19,212 |
|
| 16,222 |
| ||
Intangible assets, net | 37,439 |
|
| 44,898 |
| ||
Goodwill | 128,427 |
|
| 128,427 |
| ||
Other assets | 922 |
|
| 1,029 |
| ||
Total assets | $ | 578,414 |
|
| $ | 586,792 |
|
Liabilities and Stockholders' Equity |
|
|
| ||||
Current liabilities: |
|
|
| ||||
Accounts payable | $ | 9,089 |
|
| $ | 15,959 |
|
Accrued compensation and benefits | 12,372 |
|
| 14,368 |
| ||
Other current liabilities | 62,801 |
|
| 70,620 |
| ||
Deferred revenues | 11,904 |
|
| 12,027 |
| ||
Contingent consideration related to acquisitions | 29,739 |
|
| 8,524 |
| ||
Total current liabilities | 125,905 |
|
| 121,498 |
| ||
Other non-current liabilities | 20,072 |
|
| 18,314 |
| ||
Contingent consideration related to acquisitions | — |
|
| 20,930 |
| ||
Convertible senior notes, net | 180,015 |
|
| 177,168 |
| ||
Deferred tax liabilities | 1,853 |
|
| 1,853 |
| ||
Total liabilities | 327,845 |
|
| 339,763 |
| ||
|
|
|
| ||||
Stockholders' equity: |
|
|
| ||||
Common stock | 1 |
|
| 1 |
| ||
Additional paid-in capital | 715,301 |
|
| 698,333 |
| ||
Accumulated other comprehensive loss | (1,015 | ) |
| (1,001 | ) | ||
Accumulated deficit | (463,718 | ) |
| (450,304 | ) | ||
Total stockholders' equity | 250,569 |
|
| 247,029 |
| ||
Total liabilities and stockholders' equity | $ | 578,414 |
|
| $ | 586,792 |
|
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 24 |
QUOTIENT TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data) | |||||||
| Three Months Ended March 31, | ||||||
| 2021 |
| 2020 | ||||
Revenues | $ | 115,316 |
|
| $ | 98,787 |
|
Cost of revenues(1) | 71,984 |
|
| 61,111 |
| ||
Gross Margin | 43,332 |
|
| 37,676 |
| ||
Operating Expenses: |
|
|
| ||||
Sales and marketing(1) | 27,365 |
|
| 25,034 |
| ||
Research and development(1) | 12,056 |
|
| 10,593 |
| ||
General and administrative(1) | 12,833 |
|
| 15,090 |
| ||
Change in fair value of contingent consideration | 285 |
|
| 460 |
| ||
Total operating expenses | 52,539 |
|
| 51,177 |
| ||
Loss from operations | (9,207 | ) |
| (13,501 | ) | ||
Interest expense | (3,730 | ) |
| (3,574 | ) | ||
Other income (expense), net | (228 | ) |
| 580 |
| ||
Loss before income taxes | (13,165 | ) |
| (16,495 | ) | ||
Provision for income taxes | 249 |
|
| 230 |
| ||
Net loss | $ | (13,414 | ) |
| $ | (16,725 | ) |
|
|
|
| ||||
Net loss per share, basic and diluted | $ | (0.15 | ) |
| $ | (0.19 | ) |
|
|
|
| ||||
Weighted-average shares used to compute net loss per share, basic and diluted | 92,413 |
|
| 89,638 |
| ||
|
|
|
|
(1) The stock-based compensation expense included above was as follows: | |||||
| Three Months Ended March 31, | ||||
| 2021 |
| 2020 | ||
Cost of revenues | $ | 423 |
| $ | 435 |
Sales and marketing | 1,255 |
| 1,402 | ||
Research and development | 972 |
| 881 | ||
General and administrative | 3,194 |
| 4,808 | ||
Total stock-based compensation | $ | 5,844 |
| $ | 7,526 |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 25 |
QUOTIENT TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) | |||||||
| Three Months Ended March 31, | ||||||
| 2021 |
| 2020 | ||||
Cash flows from operating activities: |
|
|
| ||||
Net loss | $ | (13,414 | ) |
| $ | (16,725 | ) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
| ||||
Depreciation and amortization | 9,431 |
|
| 8,886 |
| ||
Stock-based compensation | 5,844 |
|
| 7,526 |
| ||
Amortization of debt discount and issuance cost | 2,846 |
|
| 2,698 |
| ||
Allowance (recovery) for credit losses | (143 | ) |
| 217 |
| ||
Deferred income taxes | 249 |
|
| 230 |
| ||
Change in fair value of contingent consideration | 285 |
|
| 460 |
| ||
Other non-cash expenses | 958 |
|
| 726 |
| ||
Changes in operating assets and liabilities: |
|
|
| ||||
Accounts receivable | 18,125 |
|
| 16,252 |
| ||
Prepaid expenses and other current assets | 4,984 |
|
| (128 | ) | ||
Accounts payable and other current liabilities | (16,761 | ) |
| (9,111 | ) | ||
Payments for contingent consideration and bonuses | — |
|
| (15,418 | ) | ||
Accrued compensation and benefits | (1,771 | ) |
| (5,694 | ) | ||
Deferred revenues | (123 | ) |
| 1,183 |
| ||
Net cash provided by (used in) operating activities | 10,510 |
|
| (8,898 | ) | ||
|
|
|
| ||||
Cash flows from investing activities: |
|
|
| ||||
Purchases of property and equipment | (2,797 | ) |
| (2,488 | ) | ||
Net cash used in investing activities | (2,797 | ) |
| (2,488 | ) | ||
|
|
|
| ||||
Cash flows from financing activities: |
|
|
| ||||
Proceeds from issuances of common stock under stock plans | 13,070 |
|
| 468 |
| ||
Payments for taxes related to net share settlement of equity awards | (2,246 | ) |
| (2,312 | ) | ||
Principal payments on promissory note and finance lease obligations | (163 | ) |
| (82 | ) | ||
Payments for contingent consideration | — |
|
| (14,582 | ) | ||
Net cash provided by (used in) financing activities | 10,661 |
|
| (16,508 | ) | ||
Effect of exchange rates on cash and cash equivalents | (40 | ) |
| (72 | ) | ||
Net increase (decrease) in cash and cash equivalents | 18,334 |
|
| (27,966 | ) | ||
Cash and cash equivalents at beginning of period | 222,752 |
|
| 224,764 |
| ||
Cash and cash equivalents at end of period | $ | 241,086 |
|
| $ | 196,798 |
|
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 26 |
QUOTIENT TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited, in thousands) | |||||||
|
|
|
| ||||
| Three Months Ended March 31, | ||||||
| 2021 |
| 2020 | ||||
Net loss | $ | (13,414 | ) |
| $ | (16,725 | ) |
Adjustments: |
|
|
| ||||
Stock-based compensation | 5,844 |
|
| 7,526 |
| ||
Depreciation and amortization | 9,431 |
|
| 8,885 |
| ||
Acquisition related costs and other(1) | 482 |
|
| 1,709 |
| ||
Change in fair value of contingent consideration | 285 |
|
| 460 |
| ||
Interest expense | 3,730 |
|
| 3,574 |
| ||
Other (income) expense, net | 228 |
|
| (580 | ) | ||
Provision for income taxes | 249 |
|
| 230 |
| ||
|
|
|
| ||||
Total adjustments | $ | 20,249 |
|
| $ | 21,804 |
|
|
|
|
| ||||
Adjusted EBITDA | $ | 6,835 |
|
| $ | 5,079 |
|
|
|
|
| ||||
(1) For the three months ended March 31, 2020, other includes restructuring charges of $1.5 million. |
QUOTIENT TECHNOLOGY INC. | ||||||||||||||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Q1 FY 20 | Q2 FY 20 | Q3 FY 20 | Q4 FY 20 | Q1 FY 21 | ||||||||||||||||
Net loss | $ | (16,725 | ) | $ | (19,133 | ) | $ | (4,218 | ) | $ | (25,305 | ) | $ | (13,414 | ) | |||||
Adjustments: | ||||||||||||||||||||
Stock-based compensation |
| 7,526 |
|
| 7,006 |
|
| 6,489 |
|
| 7,350 |
|
| 5,844 |
| |||||
Depreciation and amortization |
| 8,886 |
|
| 8,957 |
|
| 8,679 |
|
| 9,830 |
|
| 9,431 |
| |||||
Acquistion related costs and other (1) |
| 1,708 |
|
| 388 |
|
| 2,393 |
|
| 7,872 |
|
| 482 |
| |||||
Change in fair value of contingent consideration |
| 460 |
|
| 3,766 |
|
| 1,562 |
|
| 14,446 |
|
| 285 |
| |||||
Interest expense |
| 3,574 |
|
| 3,610 |
|
| 3,646 |
|
| 3,691 |
|
| 3,730 |
| |||||
Other (income) expense, net |
| (580 | ) |
| (187 | ) |
| 59 |
|
| (432 | ) |
| 228 |
| |||||
Provision for (benefit from) income taxes |
| 230 |
|
| (35 | ) |
| 66 |
|
| 458 |
|
| 249 |
| |||||
Total adjustments | $ | 21,804 |
| $ | 23,505 |
| $ | 22,894 |
| $ | 43,215 |
| $ | 20,249 |
| |||||
Adjusted EBITDA (1) | $ | 5,079 |
| $ | 4,372 |
| $ | 18,676 |
| $ | 17,910 |
| $ | 6,835 |
| |||||
Adjusted EBITDA Margin (2) |
| 5% |
| 5% |
| 15% |
| 13% |
| 6% |
(1) Adjusted EBITDA, a non-GAAP financial measure, is net loss adjusted for stock-based compensation, depreciation and amortization, change in fair value of contingent consideration, interest expense, other (income) expense, net, provision for (benefit from) income taxes, and acquistion related costs and other, which includes: restructuring charges of $1.5 million during Q1 FY 20; loss contingency of $2.0 million related to a contract dispute during Q3 FY 20; and settlement of $6.8 million related to a contract dispute during Q4 FY 20
(2) Adjusted EBITDA margin is the ratio of Adjusted EBITDA and Revenues.
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 27 |
QUOTIENT TECHNOLOGY INC. | |||||||||||||
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN | |||||||||||||
(Unaudited, in thousands) | |||||||||||||
Q1 FY 20 | Q4 FY 20 | Q1 FY 21 | |||||||||||
Revenues | $ | 98,787 |
| $ | 142,529 |
| $ | 115,316 |
| ||||
Cost of revenues (GAAP) | $ | 61,111 |
| $ | 92,469 |
| $ | 71,984 |
| ||||
(less) Stock-based compensation |
| (435 | ) |
| (479 | ) |
| (423 | ) | ||||
(less) Amortization of acquired intangible assets |
| (6,325 | ) |
| (6,930 | ) |
| (6,593 | ) | ||||
(less) Settlement related to a contract dispute |
| — |
|
| (6,834 | ) |
| — |
| ||||
(less) Restructuring charges |
| (82 | ) |
| — |
|
| — |
| ||||
Cost of revenues (Non-GAAP) | $ | 54,269 |
| $ | 78,226 |
| $ | 64,968 |
| ||||
Gross margin (GAAP) | $ | 37,676 |
| $ | 50,060 |
| $ | 43,332 |
| ||||
Gross margin percentage (GAAP) |
| 38.1 | % |
| 35.1 | % |
| 37.6 | % | ||||
Gross margin (Non-GAAP)* | $ | 44,518 |
| $ | 64,303 |
| $ | 50,348 |
| ||||
Gross margin percentage (Non-GAAP) |
| 45.1 | % |
| 45.1 | % |
| 43.7 | % | ||||
* Non-GAAP gross margin excludes stock-based compensation, amortization of acquired intangible assets, settlement related to a contract dispute, and restructuring charges. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 28 |
QUOTIENT TECHNOLOGY INC. | |||||||||||||||||||||
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES | |||||||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||||||
Q1 FY 20 | Q2 FY 20 | Q3 FY 20 | Q4 FY 20 | Q1 FY 21 | |||||||||||||||||
Revenues | $ | 98,787 |
| $ | 83,455 |
| $ | 121,116 |
| $ | 142,529 |
| $ | 115,316 |
| ||||||
Sales and marketing expenses |
| 25,034 |
|
| 23,814 |
|
| 24,555 |
|
| 31,124 |
|
| 27,365 |
| ||||||
(less) Stock-based compensation |
| (1,402 | ) |
| (1,323 | ) |
| (1,187 | ) |
| (1,399 | ) |
| (1,255 | ) | ||||||
(less) Amortization of acquired intangible assets |
| (916 | ) |
| (914 | ) |
| (866 | ) |
| (866 | ) |
| (866 | ) | ||||||
(less) Restructuring charges |
| (526 | ) |
| - |
|
| — |
|
| — |
|
| — |
| ||||||
Non-GAAP Sales and marketing expenses | $ | 22,190 |
| $ | 21,577 |
| $ | 22,502 |
| $ | 28,859 |
| $ | 25,244 |
| ||||||
Non-GAAP Sales and marketing percentage |
| 22 | % |
| 26 | % |
| 19 | % |
| 20 | % |
| 22 | % | ||||||
Research and development |
| 10,593 |
|
| 8,621 |
|
| 9,744 |
|
| 11,358 |
|
| 12,056 |
| ||||||
(less) Stock-based compensation |
| (881 | ) |
| (839 | ) |
| (1,003 | ) |
| (1,108 | ) |
| (972 | ) | ||||||
(less) Restructuring charges |
| (283 | ) |
| - |
|
| — |
|
| — |
|
| — |
| ||||||
Non-GAAP Research and development expenses | $ | 9,429 |
| $ | 7,782 |
| $ | 8,741 |
| $ | 10,250 |
| $ | 11,084 |
| ||||||
Non-GAAP Research and development percentage |
| 10 | % |
| 9 | % |
| 7 | % |
| 7 | % |
| 10 | % | ||||||
General and administrative expenses |
| 15,090 |
|
| 12,268 |
|
| 12,099 |
|
| 14,720 |
|
| 12,833 |
| ||||||
(less) Stock-based compensation |
| (4,808 | ) |
| (4,457 | ) |
| (3,857 | ) |
| (4,364 | ) |
| (3,194 | ) | ||||||
(less) Restructuring charges |
| (591 | ) |
| - |
|
| — |
|
| — |
|
| — |
| ||||||
(less) Acquisiton related costs |
| (226 | ) |
| (387 | ) |
| (393 | ) |
| (1,039 | ) |
| (482 | ) | ||||||
Non-GAAP General and administrative expenses | $ | 9,465 |
| $ | 7,424 |
| $ | 7,849 |
| $ | 9,317 |
| $ | 9,157 |
| ||||||
Non-GAAP General and administrative percentage |
| 10 | % |
| 9 | % |
| 6 | % |
| 7 | % |
| 8 | % | ||||||
Non-GAAP Operating expenses* | $ | 41,084 |
| $ | 36,783 |
| $ | 39,092 |
| $ | 48,426 |
| $ | 45,485 |
| ||||||
Non-GAAP Operating expense percentage |
| 42 | % |
| 44 | % |
| 32 | % |
| 34 | % |
| 39 | % | ||||||
* Non-GAAP operating expenses excludes changes in fair value of contingent consideration, stock-based compensation, amortization of acquired intangible assets, restructuring charges, and acquisition related costs. |
Q1 2021 FINANCIAL RESULTS AND BUSINESS UPDATES | 29 |