UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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CURRENT REPORT
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Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 |
Date of Report (date of earliest event reported)
February 8, 2021 |
Delaware
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001-36331
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77-0485123
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(State or other jurisdiction of
incorporation or organization) |
(Commission File Number)
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(I.R.S. Employer
Identification Number) |
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400 Logue Avenue
Mountain View, California 94043
(Address of principal executive offices)
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(650) 605-4600
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(Registrant’s telephone number, including area code)
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Not Applicable
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(Former name or former address, if changed since last report)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
|
||
Common Stock, $0.00001 par value per share
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QUOT
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New York Stock Exchange
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10.1 |
99.1 |
99.2 |
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Quotient Technology Inc.
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|
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|
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By:
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/s/ Pamela Strayer
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Pamela Strayer
|
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Chief Financial Officer and Treasurer
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To Sublandlord:
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sPower, LLC
Attention: CFO 2180 South 1300 East Suite 500 Salt Lake City, UT 84106 |
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To Subtenant:
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Quotient Technology Inc.
Attention: Legal Department 400 Logue Avenue
Mountain View, CA 94043
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With a Copy to:
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Kirton McConkie
Attention: David Evans 50 East South Temple Salt Lake City, Utah 84111 |
SUBLANDLORD:
By: /s/ Sean McBride
Name: Sean McBride
Title: Authorized Person
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SUBTENANT:
By: /s/ Scott Raskin
Name: Scott Raskin
Title:President
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To Landlord:
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Sugarhouse Property LLC c/o Westport Capital Partners LLC
Attention: Mr. Greg Geiger 2121 Rosecrans Avenue, Suite 4325 El Segundo, CA 90245 |
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With a Copy to:
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Westport Capital Partners LLC
40 Danbury Road
Wilton, CT 06897
Attn: Marc Porosoff, Esq.
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With a Copy to:
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Ward | Molloy, P.C.
Attention: Matthew L. Molloy, Esq. 800 McIntyre Building 68 S. Main St. 8th Fl Salt Lake City, UT 84101 |
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To Tenant:
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FTP Power, LLC
Attention: CFO 2180 South 1300 East Suite 500 Salt Lake City, UT 84106 |
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To Subtenant:
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Quotient Technology Inc.
Attention: Legal Department 400 Logue Avenue
Mountain View, CA 94043
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With a Copy to:
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Kirton McConkie
Attention: David Evans 50 East South Temple Salt Lake City, Utah 84111 |
Exhibit 99.1
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Fourth Quarter 2020
Record Quarterly Revenue of $142.5M, up 20% over Q4 2019
Signed First New Retail Partnership in Automotive Vertical
Full Year 2020
Revenue of $445.9M, up 2% over 2019
Added Four Partnerships in Core Verticals
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--February 10, 2021--Quotient Technology Inc. (NYSE: QUOT), the leading digital media and promotions technology company that creates cohesive omnichannel brand-building and sales-driving opportunities to deliver valuable outcomes for consumer-packaged goods (CPGs) manufacturers, retailers and consumers, today reported financial results for the fourth quarter ended December 31, 2020. Quotient’s complete fourth quarter and full year 2020 financial results and management commentary can be found by accessing the Company’s stockholder letter under Key Resources on the overview page of the investor relations website.
Additional Financial Highlights:
Q4 2020
FY 2020
“2020 was a year of progress for Quotient and I am pleased that we ended strong with another record setting quarter in Q4,” said Steven Boal, CEO. “The foundation we built last year has propelled us forward in 2021. With current market tailwinds like the shift to digital, combined with our growth drivers and our dedicated and focused team, we are already witnessing increased demand for our solutions in Q1 2021 and look forward to the opportunities ahead of us.”
Recently, our Board of Directors authorized a stock buyback program of up to $50.0 million of Quotient’s common stock, effective February 16, 2021, through a new 10B5-1 plan that expires on February 16, 2022.
Additionally, Quotient is moving its company headquarters from California to Utah in 2021.
Conference Call Information
The Company has posted a stockholder letter and an earnings presentation on the Investor Relations section of the Company’s website at: http://investors.quotient.com/. Management will host a conference call and live webcast to discuss the highlights of the quarter and address questions today at 5:00 p.m. ET/ 2:00 p.m. PT.
To access the call, we encourage you to pre-register to eliminate long wait times using this link: Quotient Q4 2020 Earnings Pre Registration. After registering, a confirmation will be sent via email and will include dial-in details and a unique PIN code for entry to the call. Registration will be open through the live call. We suggest registering at least 15 minutes before the start of the call to receive your unique PIN code. You may also access the call and register with a live operator by dialing (866) 270-1533, or outside the U.S. (412) 317-0797, at least 15 minutes prior to the 2:00 p.m. PT start time. The live webcast and all accompanying materials can be accessed on the Investor Relations section of the Company website at: http://investors.quotient.com/. A replay of the webcast will be available on the website following the conference call.
Use of Non-GAAP Financial Measures
Quotient reports its financial statements in accordance with generally accepted accounting principles in the United States (GAAP) and the rules of the SEC. To supplement its financial statements presented in accordance with GAAP, Quotient provides investors in this press release with Adjusted EBITDA, a non-GAAP financial measure. Quotient believes that this non-GAAP measure provides investors with additional useful information used by Quotient’s management and Board of Directors for financial and operating decision making. In particular, Quotient believes that the exclusion of certain income and expenses in calculating this metric can provide a useful measure for period-to-period comparisons of its core business as well as a useful comparison to peer companies.
Quotient defines Adjusted EBITDA as net income (loss) adjusted for interest expense, provision for (benefit from) income taxes, other (income) expense, net, depreciation and amortization, stock-based compensation, change in fair value of contingent consideration, certain acquisition-related costs, loss contingency/settlement related to a contract dispute, and restructuring charges. We exclude these items because we believe these items do not reflect expected future operating expenses. Additionally, certain items are inconsistent in size and frequency—making it difficult to contribute to a meaningful evaluation of our current or past operating performance.
There are a number of limitations related to the use of this non-GAAP financial measure. Quotient compensates for these limitations by providing specific information regarding the GAAP amount excluded from this non-GAAP financial measure and evaluating this non-GAAP financial measure together with its relevant GAAP financial measure.
This non-GAAP financial measure is not intended to be considered in isolation from, as substitute for, or as superior to the corresponding financial measure prepared in accordance with GAAP. Because of these and other limitations, Adjusted EBITDA should be considered along with other GAAP-based financial performance measures, including various cash flow metrics, net income (loss) and Quotient’s other GAAP financial results.
For a reconciliation of this non-GAAP financial measure to the nearest comparable GAAP financial measure, see “Reconciliation of Net Loss to Adjusted EBITDA” included in this press release.
Forward-Looking Statements
This press release contains forward-looking statements concerning the Company’s current expectations and projections about future events and financial trends affecting its business. Forward-looking statements in this press release include the Company’s current expectations regarding demand for the Company's solutions, market dynamics causing a shift to digital solutions and growth drivers. Forward-looking statements are based on the Company’s current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the Company’s ability to generate positive cash flow and become profitable; the amount and timing of digital marketing spend by CPGs and shifts in CPG spend to digital solutions; the Company’s ability to adapt to changing market conditions and data regulations, including the Company’s ability to adapt to changes in consumer habits and consumer data privacy concerns; the impacts of the ongoing COVID-19 pandemic, which may continue to significantly impact our business, plans and results of operations, as well as the value of our common stock; the Company's expectations regarding growth drivers; and other factors identified in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including its Quarterly Reports on Form 10-Q filed with the SEC on November 6, 2020 and future filings and reports by the Company. Quotient disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise and does not assume responsibility for the accuracy and completeness of the forward-looking statements.
About Quotient Technology Inc.
Quotient Technology (NYSE: QUOT) is the leading digital media and promotions technology company that creates cohesive omnichannel brand-building and sales-driving opportunities to deliver valuable outcomes for advertisers, retailers and consumers. The Quotient platform is powered by exclusive consumer spending data, location intelligence and purchase intent data to reach millions of shoppers daily and deliver measurable, incremental sales.
Quotient partners with leading advertisers and retailers, including Clorox, Procter & Gamble, General Mills, Unilever, Albertsons Companies, CVS, Dollar General and Peapod Digital Labs, a company of Ahold Delhaize USA. Quotient is headquartered in Mountain View, California, and has offices across the US as well as in Bangalore, Paris, London and Tel Aviv. For more information visit www.quotient.com.
Quotient and the Quotient logo are trademarks or registered trademarks of Quotient Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.
QUOTIENT TECHNOLOGY INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands) |
|||||||
|
|
|
|||||
|
December 31,
|
|
December 31,
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||||
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(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
222,752 |
|
|
$ |
224,764 |
|
Accounts receivable, net |
137,649 |
|
|
125,304 |
|
||
Prepaid expenses and other current assets |
18,547 |
|
|
22,026 |
|
||
Total current assets |
378,948 |
|
|
372,094 |
|
||
Property and equipment, net |
17,268 |
|
|
13,704 |
|
||
Operating leases right-of-use-assets |
16,222 |
|
|
7,211 |
|
||
Intangible assets, net |
44,898 |
|
|
69,752 |
|
||
Goodwill |
128,427 |
|
|
128,427 |
|
||
Other assets |
1,029 |
|
|
750 |
|
||
Total assets |
$ |
586,792 |
|
|
$ |
591,938 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
15,959 |
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|
$ |
19,116 |
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Accrued compensation and benefits |
14,368 |
|
|
15,232 |
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||
Other current liabilities |
70,620 |
|
|
50,032 |
|
||
Deferred revenues |
12,027 |
|
|
10,903 |
|
||
Contingent consideration related to acquisitions |
8,524 |
|
|
27,000 |
|
||
Total current liabilities |
121,498 |
|
|
122,283 |
|
||
Other non-current liabilities |
18,314 |
|
|
7,119 |
|
||
Contingent consideration related to acquisitions |
20,930 |
|
|
9,220 |
|
||
Convertible senior notes, net |
177,168 |
|
|
166,157 |
|
||
Deferred tax liabilities |
1,853 |
|
|
1,937 |
|
||
Total liabilities |
339,763 |
|
|
306,716 |
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||
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||||
Stockholders' equity: |
|
|
|
|
|
||
Common stock |
1 |
|
|
1 |
|
||
Additional paid-in capital |
698,333 |
|
|
671,060 |
|
||
Accumulated other comprehensive loss |
(1,001 |
) |
|
(916 |
) |
||
Accumulated deficit |
(450,304 |
) |
|
(384,923 |
) |
||
Total stockholders' equity |
247,029 |
|
|
285,222 |
|
||
Total liabilities and stockholders' equity |
$ |
586,792 |
|
|
$ |
591,938 |
|
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|
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||||
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Investor Relations Contact:
Christine Marchuska
Director of Investor Relations
cmarchuska@quotient.com
Phone: 917-232-0852
Exhibit 99.2
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•
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Added invaluable best-in-class talent to strengthen our organization and guide our future.
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•
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3% growth in new CPG customers and 11% growth in brand expansion, as well as more demand and higher spend commitments from our existing customers due
to the effectiveness of our platform and solutions.
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•
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Grew our retailer relationships with four new partnerships added to our network, including Shipt, 7-Eleven, Rite-Aid and Hy-Vee in FY 2020.
Additionally, we just signed our first Automotive vertical retail partnership a few weeks ago—demonstrating the strength, extensibility and scalability of our network.
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•
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Improved our forecasting ability and accuracy with collaborative processes and procedures for go-to-market, bookings and pipeline building where
sales and finance are in step—a crucial component for insight into our future outlook.
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Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
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2
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•
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Rolled out our first long-term financial outlook in November 2020, reflecting 15% to 20% revenue growth CAGR along with margin expansion over the next
three years.
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Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
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3
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•
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In FY 2020, category-leading brands—who lost significant share to private label and secondary brands due to spikes in demand and out-of-stock
situations, especially in the cleaning category—sought out our solutions to regain market share. Through a combination of our solutions, including national promotions, national media, social and sponsored search, we helped these brands get
back on shelves and regain their category-leading positions. Given our proven success delivering high return on ad and promotions spend to these customers, they have chosen to increase the budgets they are shifting to us for their FY 2021
campaigns.
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Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
4
|
•
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As noted above and at our recent Investor Day, smaller or “long-tail” CPGs are another one of our growth drivers for FY 2021 and beyond. We experienced
2% annual growth in the number of these customers, along with an increase of approximately 26% in bookings on a dollar basis over the prior year for this segment. With our newly reorganized sales team that has a structured focus on this
area of our business, we believe we will see even more growth with more of these types of customers in FY 2021.
|
•
|
Overall, as a result of the pandemic, we saw national promotions flat to slightly down on an annual basis. However, we are already seeing an uptick in
national promotions bookings for the first and second quarters of 2021. Additionally, some customers have publicly noted that they are still not at pre-pandemic levels of promotional spend due to supply chains remaining under pressure. They
expect to see more normalized spend in the back half of the year.
|
•
|
In terms of national media, we saw 15% annual growth in this category from CPGs booking more national media campaigns. We see this trend continuing in
1H 2021 as more customers are focused on digital media playing a bigger role in their spend allocation, particularly when paired with national promotional planning.
|
•
|
Again, with the restructuring of the sales team and the number of CPGs looking to deploy national promotional and media campaigns, we believe we have
significant room for growth in this segment in 2021.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
5
|
•
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Our retail performance media (RPM) solution continues to gain market traction.
|
o
|
In FY 2020, we saw an increase of over 66% in bookings dollars from our CPG customers utilizing RPM on our retailer network versus the prior year.
|
o
|
Our RPM retailers saw approximately a 58% increase in alternative revenue streams (excluding revenue from our Retailer iQ platform, which many of
these retailers also utilize) in FY 2020 as compared to the prior year. We look to continue to grow this number as we power digital solutions that drive increased sales for our partners and measurable ROI for our customers. In general,
we believe alternative revenue streams will become increasingly important in 2021 and beyond as we enter a post-pandemic world in which consumers have more options for food consumption as we see more openings and a return to dining out.
This could result in retailers facing challenging competitive environments with increased pricing and margin pressure.
|
•
|
We now have three retailers live on our sponsored search platform—including Rite Aid which just launched in Q4—with growing interest from others in
adding this solution.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
6
|
•
|
Our top three retailers who have put these programs in place continue to see success. We believe we will continue to see retailers and CPGs working
together in a similar model going forward, as digital is here to stay.
|
•
|
Lastly in Q4, Shipt launched its coupon gallery (or coupon shelf), powered by Quotient, on their site. More recently, they went live with this
solution on their app. Although we are in the early stages, we see additional opportunities with this partner to potentially add more solutions over time. This is also another solution for our customers when they are looking to deploy
national digital promotional spend.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
7
|
•
|
In 2020, we ramped up our social efforts and saw 17% growth in revenue, a 15% increase in the number of advertisers investing with Quotient for
social activations and a 24% increase in the number of total social campaigns launched—all metrics compared to the prior year.
|
•
|
Historically, brands invested in our social solution with a focus on driving in-store sales. However, with the increase in eCommerce driven by new
consumer behavior over the last year, we were able to unlock budgets traditionally ear-marked for in-store to eCommerce objectives. We saw significant growth in campaigns where the primary KPI was add-to-cart directly from the paid ad
placement on social media. We expect this trend to continue in FY 2021.
|
•
|
With social providing increased storytelling capabilities as compared to other media formats, advanced audience targeting with our proprietary
shopper data and proven results married with our ability to measure incremental sales through third party studies, we believe our social solutions will become a larger part of our clients’ media playbooks for our RPM partners and beyond
in FY 2021.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
8
|
•
|
We recently announced our partnership with VIOOH, a leading marketplace for the programmatic selling of out-of-home (OOH) advertising. This
partnership provides agencies and advertisers with access to inventory in the VIOOH marketplace, such as JCDecaux North America, and enables them to activate against it with exclusive data and insights.
|
•
|
At the end of FY 2020 we had inventory of over 174,000+ screens nationwide. This number continues to grow as we onboard screens with our partners
in FY 2021. We are currently seeing traffic with over 80 vendors/publishers and are onboarding more in Q1 2021. We are continuously looking to grow our inventory and supply to maximize opportunities for our clients.
|
•
|
With DOOH, we can be in venues where visitation is higher or recovering as conditions evolve, and dynamically adjust impression delivery to quickly
connect our brand message with target shoppers. Our customers are data-driven and look for the statistics and measurement results that we can provide to them. This in turn has resulted in a positive impact as they continue to have
increased interest in our DOOH solution.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
9
|
•
|
Since October 2020, when we went live with this offering, we saw approximately 70 CPGs activate this solution in FY 2020. Momentum continues to
grow, with customers adding this solution as part of their campaigns in early FY 2021.
|
•
|
We believe we will see continued demand for this solution as brands look for more opportunities to move away from the FSI and paper circulars to
digital national offerings and consumers look for value and ways to save during these challenging economic times.
|
•
|
Momentum for sponsored search continued in Q4, as the number of CPGs who booked a sponsored search campaign increased approximately 30% compared to
Q3 2020. We have seen consistent sequential quarter-over-quarter growth in bookings for this offering since adding it to our portfolio and believe demand will only continue as online shopping has become integrated for most consumers in
the grocery purchasing experience.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
10
|
•
|
As illustrated in the graph below, the number of redemptions from our eCommerce channel increased 52% in Q4 2020 over Q3 2020 as consumers continue
to utilize online grocery sales channels. This was at a slower pace versus previous quarters but higher than the overall increase in the number of redemptions, which includes in-store. This is not unexpected, as our data and recent
third-party publications have noted that consumers still enjoy shopping in-store.
|
•
|
In a recent issue of Today’s Grocer, Norm Chait, Director of OOH
at Ubimo, a Quotient company, commented that, despite explosive growth in eCommerce during COVID-19, 90.4% of consumers still make at least one in-person shopping trip per week. This data came from a recent survey by Ubimo that polled more than 1,000 consumers to determine how shopping behavior has changed since the pandemic began.
|
•
|
As mixed-mode shopping continues, where consumers combine in-store buying with online purchases, brands and retailers turn to Quotient for
comprehensive and cohesive brand-building and sales-driving opportunities that engage shoppers with consistent, targeted messaging throughout their path to purchase.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
11
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
12
|
|
|
Steven Boal
|
Pamela Strayer
|
Chief Executive Officer
|
Chief Financial Officer
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Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
13
|
•
|
We delivered revenue of $445.9 million, demonstrating growth of 2% over FY 2019.
|
•
|
GAAP gross margin was 37.7%, compared to 39.6% in FY 2019.
|
•
|
Non-GAAP gross margin was 45.8%, compared to 45.0% in FY 2019.
|
•
|
GAAP operating expenses were 49.2% of revenue, compared to 45.9% of revenue in FY 2019.
|
•
|
Non-GAAP operating expenses were $165.4 million and 37.1% of revenue, compared to the prior year of $158.9 million and 36.4% of
revenue.
|
•
|
We recorded a GAAP net loss of $65.4 million, compared to a net loss of $37.1 million in FY 2019. The increase in GAAP net loss
from the prior year is due primarily to an increase in fair value of contingent consideration and a one-time charge to settle a contract dispute with one of our retailers as well as certain acquisition-related costs. Net Loss Per Share
was $0.72 compared to $0.41 in FY 2019.
|
•
|
Adjusted EBITDA was $46.0 million, representing a 10.3% margin.
|
•
|
We ended the year with cash and cash equivalents of $222.8 million.
|
•
|
We delivered revenue of $142.5 million, up 20% over Q4 2019 and up 18% over Q3 2020 on a GAAP basis.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
14
|
•
|
Excluding approximately $10 million from a portion of our media business that was exited in Q3 2020, revenue growth was 31.1% over
Q4 2019.
|
•
|
GAAP gross margin was 35.1%, compared to 39.1% in Q4 2019.
|
•
|
Non-GAAP gross margin was 45.1%, compared to 44.3% in Q4 2019.
|
•
|
GAAP operating expenses were 50.3% of revenue, compared to 44.8% of revenue in Q4 2019.
|
•
|
Non-GAAP operating expenses were $48.4 million and 34.0% of revenue, compared to the prior year of $42.9 million and 36.2% of
revenue.
|
•
|
We recorded a GAAP net loss of $25.3 million, compared to a net loss of $9.6 million in Q4 2019. The increase in GAAP net loss from
the prior year is due primarily to an increase in fair value of contingent consideration, a one-time charge to settle a contract dispute with one of our retailers, certain acquisition-related costs and amortization of acquired
intangible assets. Net Loss Per Share in the quarter was $0.28 compared to $0.11 in Q4 2019.
|
•
|
Adjusted EBITDA was $17.9 million, representing a 12.6% margin.
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
15
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
16
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
17
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
18
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
19
|
•
|
Colliers Virtual NDR, February 23, 2021
|
•
|
Morgan Stanley TMT Virtual Conference, March 2, 2021
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
20
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
21
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
22
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
23
|
QUOTIENT TECHNOLOGY INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands) |
|||||||
|
|
|
|||||
|
December 31,
|
|
December 31,
|
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
222,752 |
|
|
$ |
224,764 |
|
Accounts receivable, net |
137,649 |
|
|
125,304 |
|
||
Prepaid expenses and other current assets |
18,547 |
|
|
22,026 |
|
||
Total current assets |
378,948 |
|
|
372,094 |
|
||
Property and equipment, net |
17,268 |
|
|
13,704 |
|
||
Operating leases right-of-use-assets |
16,222 |
|
|
7,211 |
|
||
Intangible assets, net |
44,898 |
|
|
69,752 |
|
||
Goodwill |
128,427 |
|
|
128,427 |
|
||
Other assets |
1,029 |
|
|
750 |
|
||
Total assets |
$ |
586,792 |
|
|
$ |
591,938 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
15,959 |
|
|
$ |
19,116 |
|
Accrued compensation and benefits |
14,368 |
|
|
15,232 |
|
||
Other current liabilities |
70,620 |
|
|
50,032 |
|
||
Deferred revenues |
12,027 |
|
|
10,903 |
|
||
Contingent consideration related to acquisitions |
8,524 |
|
|
27,000 |
|
||
Total current liabilities |
121,498 |
|
|
122,283 |
|
||
Other non-current liabilities |
18,314 |
|
|
7,119 |
|
||
Contingent consideration related to acquisitions |
20,930 |
|
|
9,220 |
|
||
Convertible senior notes, net |
177,168 |
|
|
166,157 |
|
||
Deferred tax liabilities |
1,853 |
|
|
1,937 |
|
||
Total liabilities |
339,763 |
|
|
306,716 |
|
||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
|
||
Common stock |
1 |
|
|
1 |
|
||
Additional paid-in capital |
698,333 |
|
|
671,060 |
|
||
Accumulated other comprehensive loss |
(1,001 |
) |
|
(916 |
) |
||
Accumulated deficit |
(450,304 |
) |
|
(384,923 |
) |
||
Total stockholders' equity |
247,029 |
|
|
285,222 |
|
||
Total liabilities and stockholders' equity |
$ |
586,792 |
|
|
$ |
591,938 |
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
24
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
25
|
QUOTIENT TECHNOLOGY INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
|
|||||||
|
Year Ended December 31, |
||||||
|
2020 |
|
2019 |
||||
|
(unaudited) |
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(65,381 |
) |
|
$ |
(37,057 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
36,352 |
|
|
31,437 |
|
||
Stock-based compensation |
28,371 |
|
|
32,137 |
|
||
Amortization of debt discount and issuance cost |
11,011 |
|
|
10,438 |
|
||
Allowance for credit losses |
888 |
|
|
1,227 |
|
||
Deferred income taxes |
719 |
|
|
660 |
|
||
Change in fair value of contingent consideration, net |
20,234 |
|
|
1,571 |
|
||
Impairment of capitalized software development costs |
— |
|
|
3,579 |
|
||
Other non-cash expenses |
3,275 |
|
|
2,392 |
|
||
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
(13,232 |
) |
|
(7,142 |
) |
||
Prepaid expenses and other current assets |
3,164 |
|
|
(11,145 |
) |
||
Accounts payable and other current liabilities |
15,554 |
|
|
(62 |
) |
||
Payments for contingent consideration and bonuses |
(15,418 |
) |
|
— |
|
||
Accrued compensation and benefits |
(197 |
) |
|
1,567 |
|
||
Deferred revenues |
1,125 |
|
|
2,216 |
|
||
Net cash provided by operating activities |
26,465 |
|
|
31,818 |
|
||
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
(8,351 |
) |
|
(9,021 |
) |
||
Purchases of intangible assets |
(3,018 |
) |
|
(14,811 |
) |
||
Acquisitions, net of cash acquired |
— |
|
|
(13,730 |
) |
||
Purchases of short-term investments |
— |
|
|
— |
|
||
Proceeds from maturity of short-term investment |
— |
|
|
20,738 |
|
||
Net cash used in investing activities |
(11,369 |
) |
|
(16,824 |
) |
||
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock under stock plans |
5,002 |
|
|
5,017 |
|
||
Payments for taxes related to net share settlement of equity awards |
(7,203 |
) |
|
(9,838 |
) |
||
Repurchases and retirement of common stock under share repurchase program |
— |
|
|
(87,097 |
) |
||
Principal payments on promissory note and capital lease obligations |
(391 |
) |
|
(317 |
) |
||
Payments for contingent consideration |
(14,582 |
) |
|
— |
|
||
Net cash used in financing activities |
(17,174 |
) |
|
(92,235 |
) |
||
Effect of exchange rates on cash and cash equivalents |
66 |
|
|
(23 |
) |
||
Net decrease in cash and cash equivalents |
(2,012 |
) |
|
(77,264 |
) |
||
Cash and cash equivalents at beginning of period |
224,764 |
|
|
302,028 |
|
||
Cash and cash equivalents at end of period |
$ |
222,752 |
|
|
$ |
224,764 |
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
26
|
QUOTIENT TECHNOLOGY INC. |
|||||||||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|||||||||||||||
(Unaudited, in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net loss |
$ |
(25,305 |
) |
|
$ |
(9,560 |
) |
|
$ |
(65,381 |
) |
|
$ |
(37,057 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
7,350 |
|
|
8,445 |
|
|
28,371 |
|
|
32,137 |
|
||||
Depreciation and amortization |
9,830 |
|
|
8,177 |
|
|
36,352 |
|
|
31,437 |
|
||||
Acquisition related costs and other(1) |
7,872 |
|
|
1,091 |
|
|
12,361 |
|
|
7,670 |
|||||
Change in fair value of contingent consideration |
14,446 |
|
|
519 |
|
|
20,234 |
|
|
1,571 |
|
||||
Interest expense |
3,691 |
|
|
3,539 |
|
|
14,521 |
|
|
13,955 |
|
||||
Other income, net |
(432 |
) |
|
(1,009 |
) |
|
(1,140 |
) |
|
(5,223 |
) |
||||
Provision for income taxes |
458 |
|
|
285 |
|
|
719 |
|
|
660 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Total adjustments |
$ |
43,215 |
|
|
$ |
21,047 |
|
|
$ |
111,418 |
|
|
$ |
82,207 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
$ |
17,910 |
|
|
$ |
11,487 |
|
|
$ |
46,037 |
|
|
$ |
45,150 |
|
(1) For the three and twelve months ended December 31, 2020, other includes restructuring charges of zero and $1.5 million, respectively, and loss contingency and settlement of $6.8 million and $8.8 million, respectively, related to a contract dispute. For the three and twelve months ended December 31, 2019, other includes restructuring charges of zero and $4.3 million, respectively. |
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
27
|
QUOTIENT TECHNOLOGY INC.
|
|||||||||||||||||||||
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
|
|||||||||||||||||||||
(Unaudited,
in thousands)
|
|||||||||||||||||||||
Q4 FY 19
|
Q3 FY 20
|
Q4 FY 20
|
FY 2019
|
FY 2020
|
|||||||||||||||||
Revenues
|
$
|
118,532
|
$
|
121,116
|
$
|
142,529
|
$
|
436,160
|
$
|
445,887
|
|||||||||||
Cost of revenues (GAAP)
|
$
|
72,219
|
$
|
73,603
|
$
|
92,469
|
$
|
263,606
|
$
|
277,914
|
|||||||||||
(less) Stock-based compensation
|
(521
|
)
|
(442
|
)
|
(479
|
)
|
(2,193
|
)
|
(1,743
|
)
|
|||||||||||
(less) Amortization of acquired intangible assets
|
(5,686
|
)
|
(6,027
|
)
|
(6,930
|
)
|
(21,555
|
)
|
(25,560
|
)
|
|||||||||||
(less) Loss contingency/settlement related to a contract dispute
|
—
|
(2,000
|
)
|
(6,834
|
)
|
—
|
(8,834
|
)
|
|||||||||||||
(less) Restructuring charges
|
—
|
—
|
—
|
—
|
(82
|
)
|
|||||||||||||||
Cost of revenues (Non-GAAP)
|
$
|
66,012
|
$
|
65,134
|
$
|
78,226
|
$
|
239,858
|
$
|
241,695
|
|||||||||||
Gross margin (GAAP)
|
$
|
46,313
|
$
|
47,513
|
$
|
50,060
|
$
|
172,554
|
$
|
167,973
|
|||||||||||
Gross margin percentage (GAAP)
|
39.1
|
%
|
39.2
|
%
|
35.1
|
%
|
39.6
|
%
|
37.7
|
%
|
|||||||||||
Gross margin (Non-GAAP)*
|
$
|
52,520
|
$
|
55,982
|
$
|
64,303
|
$
|
196,302
|
$
|
204,192
|
|||||||||||
Gross margin percentage (Non-GAAP)
|
44.3
|
%
|
46.2
|
%
|
45.1
|
%
|
45.0
|
%
|
45.8
|
%
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
28
|
QUOTIENT TECHNOLOGY INC.
|
|||||||||||||||||||||
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
|
|||||||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||||||
Q4 FY 19
|
Q3 FY 20
|
Q4 FY 20
|
FY 2019
|
FY 2020
|
|||||||||||||||||
Revenues
|
$
|
118,532
|
$
|
121,116
|
$
|
142,529
|
$
|
436,160
|
$
|
445,887
|
|||||||||||
Sales and marketing expenses
|
27,541
|
24,555
|
31,124
|
101,244
|
104,527
|
||||||||||||||||
(less) Stock-based compensation
|
(1,816
|
)
|
(1,187
|
)
|
(1,399
|
)
|
(6,812
|
)
|
(5,311
|
)
|
|||||||||||
(less) Amortization of acquired intangible assets
|
(675
|
)
|
(866
|
)
|
(866
|
)
|
(2,203
|
)
|
(3,562
|
)
|
|||||||||||
(less) Restructuring charges
|
—
|
—
|
—
|
—
|
(526
|
)
|
|||||||||||||||
Non-GAAP Sales and marketing expenses
|
$
|
25,050
|
$
|
22,502
|
$
|
28,859
|
$
|
92,229
|
$
|
95,128
|
|||||||||||
Non-GAAP Sales and marketing percentage
|
21
|
%
|
19
|
%
|
20
|
%
|
21
|
%
|
21
|
%
|
|||||||||||
Research and development
|
10,771
|
9,744
|
11,358
|
39,076
|
40,316
|
||||||||||||||||
(less) Stock-based compensation
|
(1,225
|
)
|
(1,003
|
)
|
(1,108
|
)
|
(4,804
|
)
|
(3,831
|
)
|
|||||||||||
(less) Restructuring charges
|
—
|
—
|
—
|
—
|
(283
|
)
|
|||||||||||||||
Non-GAAP Research and development expenses
|
$
|
9,546
|
$
|
8,741
|
$
|
10,250
|
$
|
34,272
|
$
|
36,202
|
|||||||||||
Non-GAAP Research and development percentage
|
8
|
%
|
7
|
%
|
7
|
%
|
8
|
%
|
8
|
%
|
|||||||||||
General and administrative expenses
|
14,227
|
12,099
|
14,720
|
58,328
|
54,177
|
||||||||||||||||
(less) Stock-based compensation
|
(4,883
|
)
|
(3,857
|
)
|
(4,364
|
)
|
(18,328
|
)
|
(17,486
|
)
|
|||||||||||
(less) Restructuring charges
|
—
|
—
|
—
|
(4,212
|
)
|
(591
|
)
|
||||||||||||||
(less) Acquisiton related costs
|
(1,065
|
)
|
(393
|
)
|
(1,039
|
)
|
(3,407
|
)
|
(2,045
|
)
|
|||||||||||
Non-GAAP General and administrative expenses
|
$
|
8,279
|
$
|
7,849
|
$
|
9,317
|
$
|
32,381
|
$
|
34,055
|
|||||||||||
Non-GAAP General and administrative percentage
|
7
|
%
|
6
|
%
|
7
|
%
|
7
|
%
|
8
|
%
|
|||||||||||
Non-GAAP Operating expenses*
|
$
|
42,875
|
$
|
39,092
|
$
|
48,426
|
$
|
158,882
|
$
|
165,385
|
|||||||||||
Non-GAAP Operating expense percentage
|
36
|
%
|
32
|
%
|
34
|
%
|
36
|
%
|
37
|
%
|
Q4 2020 FINANCIAL RESULTS AND BUSINESS UPDATES
|
29
|