BELLEVUE, Wash., Oct. 29, 2018 /PRNewswire/ -- Apptio,
Inc. (NASDAQ:APTI), the business management system of record
for hybrid IT, today announced results for the fiscal third quarter
ended September 30, 2018.
"Our third quarter highlights include 26% year over year
revenue growth and expanding non-GAAP operating income to
$4 million," said Sunny Gupta, co-founder and CEO, Apptio. "We had
strong contributions from our strategic segment and continued
progress with our upsells, further validating our land and expand
strategy. The move toward a digital enterprise, enabled by
cloud, is fueling the need for CIOs to adopt Apptio. We are
excited about our recent acquisition of FittedCloud, which will add
capabilities to our offering in the rapidly expanding Hybrid and
Multi-cloud market."
Third Quarter Financial Summary
- Subscription revenue was $49.6
million, an increase of 26% from the third quarter of 2017,
and comprised 84% of total revenue. Services revenue was
$9.6 million, an increase of 27% from
the third quarter of 2017. Total revenue was $59.2 million, an increase of 26% from the third
quarter of 2017.
- GAAP gross margin was 69.5%, as compared to the third quarter
of 2017 GAAP gross margin of 70.4%. Non-GAAP gross margin of
72.3% improved from non-GAAP gross margin of 71.7% in the third
quarter of 2017.
- GAAP operating margin was negative 4.9%, an improvement from
GAAP operating margin of negative 8.6% in the third quarter of
2017. Non-GAAP operating margin improved to 7.3%, as compared to
non-GAAP operating margin of 0.6% in the third quarter of
2017.
- GAAP net loss per basic and diluted share was $0.10 based on 44.8 million weighted average
shares outstanding, compared to GAAP net loss per basic and diluted
share of $0.10 based on 40.1 million
weighted average shares outstanding in the third quarter of
2017.
- Non-GAAP net income per diluted share was $0.05 based on 49.3 million weighted average
shares outstanding, compared to non-GAAP net income per basic and
diluted share of $0.01 based on 43.3
million weighted average shares outstanding in the third quarter of
2017.
- Cash, cash equivalents and marketable securities were
approximately $258.0 million as of
September 30, 2018.
Financial Outlook
Apptio provides guidance based on
current market conditions and expectations and actual results may
differ materially. Please refer to the company's comments below
regarding Forward-Looking Statements. Apptio is providing guidance
for the fourth quarter ending December 31,
2018 and for the full year 2018 as follows:
Fourth quarter of 2018:
- Total revenue is expected to be in the range of $61.0 to $62.0
million
- Non-GAAP operating income of approximately $1.0 million
Full year 2018:
- Total revenue is expected to be in the range of $233.3 and $234.3
million
- Non-GAAP operating income of approximately $7.4 million
All forward-looking non-GAAP financial measures contained in
this section titled "Financial Outlook" exclude the effects of
stock-based compensation expense, acquisition-related expenses, and
amortization of acquisition related intangible assets. Guidance
reflects the contribution from Digital Fuel which we acquired on
February 2, 2018 and the impact of
the full retrospective adoption of Accounting Standards Update No.
2014-09, Revenue from Contracts with Customers (Topic
606) on January 1, 2018.
Conference Call Information
Apptio plans to host a
conference call today to discuss the results. The call is scheduled
to begin at 2:00 p.m. PT/
5:00 p.m. ET and can be accessed by
dialing 844-233-0116 (passcode: 6180216), or if outside
North America, by dialing
574-990-1011 (passcode: 6180216). Individuals may also access the
live teleconference from the investor relations section of the
Apptio website at investors.apptio.com. A replay will be available
following completion of the live broadcast.
About Apptio
Apptio (NASDAQ: APTI) is the business
management system of record for hybrid IT. We transform the way IT
runs its business and makes decisions. With our cloud-based
applications, IT leaders manage, plan and optimize their technology
investments across on-premises and cloud. With Apptio, IT leaders
become strategic partners to the business by demonstrating the
value of IT investments, accelerate innovation and shift their
technology investments from running the business to digital
innovation. Hundreds of customers choose Apptio as their business
system of record for hybrid IT. For more information, please visit
www.Apptio.com.
Forward-Looking Statements
This release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements regarding
our strategy, prospects, customer demand, application adoption,
potential benefits from acquired companies, and our financial
outlook for the fourth quarter of, and full year, 2018.
Forward-looking statements are subject to risks and uncertainties
and are based on potentially inaccurate assumptions that could
cause actual results to differ materially from those expected or
implied by the forward-looking statements. Actual results may
differ materially from the results predicted, and reported results
should not be considered as an indication of future performance.
The potential risks and uncertainties that could cause actual
results to differ from the results predicted include, among others,
those risks and uncertainties included under the caption "Risk
Factors" and elsewhere in our filings with the U.S. Securities
and Exchange Commission, including, without limitation, the Form
10-Q filed with the SEC on August 3, 2018. All
information provided in this release and in the attachments is as
of the date hereof, and we undertake no duty to update this
information unless required by law.
Non-GAAP Financial Measures
To supplement our
condensed consolidated financial statements, which are prepared and
presented in accordance with Generally Accepted Accounting
Principles in the United
States of America (GAAP), we use the following non-GAAP
financial measures: non-GAAP gross margin, non-GAAP operating loss,
non-GAAP net loss per basic and diluted share, and free cash flow.
In computing these measures, with the exception of free cash flow,
we exclude the effects of stock-based compensation expense,
acquisition-related expenses, and amortization of
acquisition-related intangible assets. We define free cash flow as
net cash used in operating activities, less the purchases of
property and equipment. The presentation of this non-GAAP financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP, and our non-GAAP measures
may be different from non-GAAP measures used by other
companies.
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. Our management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance and liquidity by excluding
certain expenses and expenditures that may not be indicative of our
ongoing core business operating results. We believe that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing our performance and when analyzing
historical performance and liquidity and planning, forecasting, and
analyzing future periods.
For a reconciliation of these non-GAAP financial measures to
GAAP measures, please see the tables captioned "Results of
Operations GAAP to Non-GAAP Reconciliation" included at the end of
this release. We have not reconciled guidance for non-GAAP metrics
to their most directly comparable GAAP measures because such items
that impact these measures are not within our control or cannot be
reasonably predicted.
Apptio,
Inc.
|
Condensed
Consolidated Statements of Operations
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
*As
Adjusted
|
|
|
|
|
*As
Adjusted
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
49,610
|
|
$
|
39,426
|
|
$
|
144,287
|
|
$
|
112,860
|
|
Professional
services
|
|
|
9,613
|
|
|
7,570
|
|
|
28,051
|
|
|
23,292
|
|
Total
revenue
|
|
|
59,223
|
|
|
46,996
|
|
|
172,338
|
|
|
136,152
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
9,157
|
|
|
7,167
|
|
|
27,777
|
|
|
22,269
|
|
Professional
services
|
|
|
8,916
|
|
|
6,763
|
|
|
26,925
|
|
|
21,599
|
|
Total
cost of revenue
|
|
|
18,073
|
|
|
13,930
|
|
|
54,702
|
|
|
43,868
|
|
Gross
profit
|
|
|
41,150
|
|
|
33,066
|
|
|
117,636
|
|
|
92,284
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
12,130
|
|
|
10,139
|
|
|
36,204
|
|
|
30,060
|
|
Sales and
marketing
|
|
|
23,993
|
|
|
19,792
|
|
|
70,695
|
|
|
60,401
|
|
General and
administrative
|
|
|
7,905
|
|
|
7,188
|
|
|
25,558
|
|
|
20,342
|
|
Total
operating expenses
|
|
|
44,028
|
|
|
37,119
|
|
|
132,457
|
|
|
110,803
|
|
Loss from
operations
|
|
|
(2,878)
|
|
|
(4,053)
|
|
|
(14,821)
|
|
|
(18,519)
|
|
Other (expense)
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(1,897)
|
|
|
(1)
|
|
|
(4,021)
|
|
|
(21)
|
|
Interest
income
|
|
|
1,126
|
|
|
326
|
|
|
2,375
|
|
|
859
|
|
Other income
(expense), net
|
|
|
109
|
|
|
(14)
|
|
|
81
|
|
|
(27)
|
|
Foreign exchange
(loss) gain
|
|
|
(335)
|
|
|
93
|
|
|
(797)
|
|
|
159
|
|
Loss before income
taxes
|
|
|
(3,875)
|
|
|
(3,649)
|
|
|
(17,183)
|
|
|
(17,549)
|
|
Provision for income
taxes
|
|
|
(695)
|
|
|
(463)
|
|
|
(783)
|
|
|
(614)
|
|
Net
loss
|
|
$
|
(4,570)
|
|
$
|
(4,112)
|
|
$
|
(17,966)
|
|
$
|
(18,163)
|
|
Net loss per share
attributable to common stockholders, basic and diluted
|
|
$
|
(0.10)
|
|
$
|
(0.10)
|
|
$
|
(0.41)
|
|
$
|
(0.46)
|
|
Weighted-average
shares used to compute net loss per share attributable to common
stockholders, basic and diluted
|
|
|
44,785
|
|
|
40,120
|
|
|
43,830
|
|
|
39,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As adjusted for the
three and nine months ended September 30, 2017 to reflect the
adoption of Accounting Standards Update, ASU, No. 2014-09, Revenue
from Contracts with Customers (Topic 606).
|
Apptio,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
September 30,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
*As
Adjusted
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
177,677
|
|
$
|
55,069
|
|
Short-term
investments
|
|
|
77,495
|
|
|
93,901
|
|
Accounts receivable,
net of allowance for doubtful accounts of $839 and
$413
|
|
|
66,485
|
|
|
68,782
|
|
Deferred
costs
|
|
|
14,252
|
|
|
11,898
|
|
Prepaid expenses and
other current assets
|
|
|
5,078
|
|
|
5,079
|
|
Total current
assets
|
|
|
340,987
|
|
|
234,729
|
|
Long-term
assets
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation and amortization
of $25,394 and $21,924
|
|
|
10,592
|
|
|
10,437
|
|
Long-term
investments
|
|
|
2,837
|
|
|
--
|
|
Deferred costs, net of
current portion
|
|
|
18,779
|
|
|
17,182
|
|
Acquisition-related
intangible assets, net
|
|
|
18,112
|
|
|
--
|
|
Goodwill
|
|
|
31,004
|
|
|
--
|
|
Other long-term
assets
|
|
|
951
|
|
|
983
|
|
Total
assets
|
|
$
|
423,262
|
|
$
|
263,331
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
8,492
|
|
$
|
5,598
|
|
Accrued payroll and
other expenses
|
|
|
19,816
|
|
|
16,481
|
|
Deferred
revenue
|
|
|
118,242
|
|
|
116,831
|
|
Deferred
rent
|
|
|
1,000
|
|
|
892
|
|
Capital
leases
|
|
|
25
|
|
|
21
|
|
Total current
liabilities
|
|
|
147,575
|
|
|
139,823
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
Convertible senior
notes, net
|
|
|
109,772
|
|
|
--
|
|
Deferred revenue, net
of current portion
|
|
|
5,919
|
|
|
2,470
|
|
Deferred rent, net of
current portion
|
|
|
2,996
|
|
|
3,483
|
|
Capital leases, net of
current portion
|
|
|
103
|
|
|
26
|
|
Asset retirement
obligation
|
|
|
222
|
|
|
199
|
|
Total
liabilities
|
|
|
266,587
|
|
|
146,001
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Class A and Class B
Common stock
|
|
|
5
|
|
|
4
|
|
Additional paid-in
capital
|
|
|
371,491
|
|
|
314,301
|
|
Accumulated other
comprehensive income (loss)
|
|
|
10
|
|
|
(110)
|
|
Accumulated
deficit
|
|
|
(214,831)
|
|
|
(196,865)
|
|
Total stockholders'
equity
|
|
|
156,675
|
|
|
117,330
|
|
Total liabilities and
stockholders' equity
|
|
$
|
423,262
|
|
$
|
263,331
|
|
|
|
|
|
|
|
|
|
*As adjusted for the
year ended December 31, 2017 to reflect the adoption of Accounting
Standards Update, ASU, No. 2014-09, Revenue from Contracts with
Customers (Topic 606).
|
Apptio,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
*As
Adjusted
|
|
|
|
|
*As
Adjusted
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,570)
|
|
$
|
(4,112)
|
|
$
|
(17,966)
|
|
$
|
(18,163)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,316
|
|
|
1,575
|
|
|
4,000
|
|
|
4,657
|
|
(Accretion of discounts)/amortization of premiums on
investments
|
|
|
(280)
|
|
|
5
|
|
|
(517)
|
|
|
59
|
|
Amortization of acquisition-related intangible assets
|
|
|
896
|
|
|
--
|
|
|
2,388
|
|
|
--
|
|
Amortization of deferred costs
|
|
|
4,272
|
|
|
3,477
|
|
|
12,222
|
|
|
10,093
|
|
Amortization of debt discount and issuance costs
|
|
|
1,588
|
|
|
--
|
|
|
3,362
|
|
|
18
|
|
(Gain) loss on
disposal of property and equipment
|
|
|
(38)
|
|
|
11
|
|
|
9
|
|
|
7
|
|
Stock-based compensation
|
|
|
6,155
|
|
|
4,357
|
|
|
16,686
|
|
|
11,667
|
|
Foreign
exchange loss (gain)
|
|
|
335
|
|
|
(93)
|
|
|
797
|
|
|
(159)
|
|
Change in
operating assets and liabilities, net of impact of business
combination
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(7,522)
|
|
|
4,696
|
|
|
7,986
|
|
|
12,026
|
|
Prepaid expenses and
other assets
|
|
|
(682)
|
|
|
1,779
|
|
|
(593)
|
|
|
3,260
|
|
Deferred
costs
|
|
|
(5,448)
|
|
|
(4,529)
|
|
|
(13,611)
|
|
|
(10,648)
|
|
Accounts
payable
|
|
|
265
|
|
|
(402)
|
|
|
1,104
|
|
|
635
|
|
Accrued
expenses
|
|
|
3,765
|
|
|
(298)
|
|
|
2,437
|
|
|
(2,025)
|
|
Deferred
revenue
|
|
|
(197)
|
|
|
2,892
|
|
|
(9,871)
|
|
|
72
|
|
Deferred
rent
|
|
|
(148)
|
|
|
(198)
|
|
|
(594)
|
|
|
(596)
|
|
Net cash (used in)
provided by operating activities
|
|
|
(293)
|
|
|
9,160
|
|
|
7,839
|
|
|
10,903
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business combination,
net of cash acquired
|
|
|
--
|
|
|
--
|
|
|
(39,041)
|
|
|
--
|
|
Purchases of property
and equipment
|
|
|
(842)
|
|
|
(601)
|
|
|
(2,238)
|
|
|
(2,837)
|
|
Proceeds from sale of
equipment
|
|
|
38
|
|
|
2
|
|
|
38
|
|
|
11
|
|
Proceeds from
maturities of investments
|
|
|
34,400
|
|
|
15,375
|
|
|
115,950
|
|
|
35,075
|
|
Purchases of
investments
|
|
|
(34,567)
|
|
|
(37,298)
|
|
|
(101,785)
|
|
|
(66,196)
|
|
Return of (payments
for) security deposits
|
|
|
3
|
|
|
6
|
|
|
53
|
|
|
(23)
|
|
Net cash used in
investing activities
|
|
|
(968)
|
|
|
(22,516)
|
|
|
(27,023)
|
|
|
(33,970)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings on convertible notes, net of discounts and issuance
costs
|
|
|
--
|
|
|
--
|
|
|
139,438
|
|
|
--
|
|
Purchase of capped
calls
|
|
|
--
|
|
|
--
|
|
|
(17,092)
|
|
|
--
|
|
Proceeds from
exercises of common stock options
|
|
|
4,090
|
|
|
3,453
|
|
|
18,032
|
|
|
8,948
|
|
Payment of debt
issuance fees
|
|
|
(4)
|
|
|
--
|
|
|
(469)
|
|
|
--
|
|
Proceeds from
purchases of stock under employee stock purchase plan
|
|
|
--
|
|
|
--
|
|
|
2,391
|
|
|
2,251
|
|
Payment of initial
public offering costs
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(243)
|
|
Principal payments on
capital lease obligations
|
|
|
(7)
|
|
|
(11)
|
|
|
(20)
|
|
|
(32)
|
|
Net cash provided by
financing activities
|
|
|
4,079
|
|
|
3,442
|
|
|
142,280
|
|
|
10,924
|
|
Foreign currency
effect on cash, cash equivalents and restricted cash
|
|
|
(135)
|
|
|
(641)
|
|
|
(488)
|
|
|
(585)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
|
2,683
|
|
|
(10,555)
|
|
|
122,608
|
|
|
(12,728)
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
174,994
|
|
|
39,834
|
|
|
55,069
|
|
|
42,007
|
|
End of
period
|
|
$
|
177,677
|
|
$
|
29,279
|
|
$
|
177,677
|
|
$
|
29,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As adjusted for the
three and nine months ended September 30, 2017 to reflect the
adoption of Accounting Standards Update, ASU, No. 2014-09, Revenue
from Contracts with Customers (Topic 606).
|
Apptio,
Inc.
|
Results of
Operations GAAP to Non-GAAP Reconciliation
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
*As
Adjusted
|
|
|
|
|
|
|
*As
Adjusted
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
$
|
49,610
|
|
|
$
|
39,426
|
|
|
$
|
144,287
|
|
|
$
|
112,860
|
|
Professional
services
|
|
9,613
|
|
|
|
7,570
|
|
|
|
28,051
|
|
|
|
23,292
|
|
Total revenue
|
|
59,223
|
|
|
|
46,996
|
|
|
|
172,338
|
|
|
|
136,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
subscription
|
|
9,157
|
|
|
|
7,167
|
|
|
|
27,777
|
|
|
|
22,269
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
(286)
|
|
|
|
(330)
|
|
|
|
(894)
|
|
|
|
(927)
|
|
Amortization of acquisition-related intangible
assets
|
|
(896)
|
|
|
|
--
|
|
|
|
(2,388)
|
|
|
|
--
|
|
Non-GAAP subscription cost of revenue
|
|
7,975
|
|
|
|
6,837
|
|
|
|
24,495
|
|
|
|
21,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
professional services
|
|
8,916
|
|
|
|
6,763
|
|
|
|
26,925
|
|
|
|
21,599
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
(507)
|
|
|
|
(294)
|
|
|
|
(1,314)
|
|
|
|
(842)
|
|
Non-GAAP professional services cost of revenue
|
$
|
8,409
|
|
|
$
|
6,469
|
|
|
$
|
25,611
|
|
|
$
|
20,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
and gross margin reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
subscription gross profit
|
$
|
40,453
|
|
|
$
|
32,259
|
|
|
$
|
116,510
|
|
|
$
|
90,591
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
286
|
|
|
|
330
|
|
|
|
894
|
|
|
|
927
|
|
Amortization of acquisition-related intangible
assets
|
|
896
|
|
|
|
--
|
|
|
|
2,388
|
|
|
|
--
|
|
Non-GAAP subscription gross profit
|
|
41,635
|
|
|
|
32,589
|
|
|
|
119,792
|
|
|
|
91,518
|
|
GAAP subscription gross margin
|
|
81.5
|
%
|
|
|
81.8
|
%
|
|
|
80.7
|
%
|
|
|
80.3
|
%
|
Non-GAAP subscription gross margin
|
|
83.9
|
%
|
|
|
82.7
|
%
|
|
|
83.0
|
%
|
|
|
81.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
professional services gross profit
|
|
697
|
|
|
|
807
|
|
|
|
1,126
|
|
|
|
1,693
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
507
|
|
|
|
294
|
|
|
|
1,314
|
|
|
|
842
|
|
Non-GAAP
professional services gross profit
|
|
1,204
|
|
|
|
1,101
|
|
|
|
2,440
|
|
|
|
2,535
|
|
GAAP professional services gross margin
|
|
7.3
|
%
|
|
|
10.7
|
%
|
|
|
4.0
|
%
|
|
|
7.3
|
%
|
Non-GAAP professional services gross margin
|
|
12.5
|
%
|
|
|
14.5
|
%
|
|
|
8.7
|
%
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
41,150
|
|
|
|
33,066
|
|
|
|
117,636
|
|
|
|
92,284
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
793
|
|
|
|
624
|
|
|
|
2,208
|
|
|
|
1,769
|
|
Amortization of acquisition-related intangible
assets
|
|
896
|
|
|
|
--
|
|
|
|
2,388
|
|
|
|
--
|
|
Non-GAAP
gross profit
|
$
|
42,839
|
|
|
$
|
33,690
|
|
|
$
|
122,232
|
|
|
$
|
94,053
|
|
GAAP gross margin
|
|
69.5
|
%
|
|
|
70.4
|
%
|
|
|
68.3
|
%
|
|
|
67.8
|
%
|
Non-GAAP gross margin
|
|
72.3
|
%
|
|
|
71.7
|
%
|
|
|
70.9
|
%
|
|
|
69.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research
and development
|
$
|
12,130
|
|
|
$
|
10,139
|
|
|
$
|
36,204
|
|
|
$
|
30,060
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
(1,516)
|
|
|
|
(1,179)
|
|
|
|
(4,308)
|
|
|
|
(3,332)
|
|
Non-GAAP research and
development
|
|
10,614
|
|
|
|
8,960
|
|
|
|
31,896
|
|
|
|
26,728
|
|
As a % of
total revenue, non-GAAP
|
|
17.9
|
%
|
|
|
19.1
|
%
|
|
|
18.5
|
%
|
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP sales and
marketing
|
|
23,993
|
|
|
|
19,792
|
|
|
|
70,695
|
|
|
|
60,401
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
(2,050)
|
|
|
|
(1,239)
|
|
|
|
(5,186)
|
|
|
|
(3,316)
|
|
Non-GAAP
sales and marketing
|
|
21,943
|
|
|
|
18,553
|
|
|
|
65,509
|
|
|
|
57,085
|
|
As a % of
total revenue, non-GAAP
|
|
37.1
|
%
|
|
|
39.5
|
%
|
|
|
38.0
|
%
|
|
|
41.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
administrative
|
|
7,905
|
|
|
|
7,188
|
|
|
|
25,558
|
|
|
|
20,342
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
(1,796)
|
|
|
|
(1,315)
|
|
|
|
(4,984)
|
|
|
|
(3,250)
|
|
Acquisition-related expenses and purchase accounting
adjustment
|
|
(160)
|
|
|
|
--
|
|
|
|
(2,109)
|
|
|
|
--
|
|
Non-GAAP
general and administrative
|
|
5,949
|
|
|
|
5,873
|
|
|
|
18,465
|
|
|
|
17,092
|
|
As a % of
total revenue, non-GAAP
|
|
10.0
|
%
|
|
|
12.5
|
%
|
|
|
10.7
|
%
|
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
(2,878)
|
|
|
|
(4,053)
|
|
|
|
(14,821)
|
|
|
|
(18,519)
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
6,155
|
|
|
|
4,357
|
|
|
|
16,686
|
|
|
|
11,667
|
|
Acquisition-related expenses
and purchase accounting adjustment
|
|
160
|
|
|
|
--
|
|
|
|
2,109
|
|
|
|
--
|
|
Amortization of
acquisition-related intangible assets
|
|
896
|
|
|
|
--
|
|
|
|
2,388
|
|
|
|
--
|
|
Non-GAAP
income (loss) from operations
|
$
|
4,333
|
|
|
$
|
304
|
|
|
$
|
6,362
|
|
|
$
|
(6,852)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations as a percentage of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
(4.9%)
|
|
|
|
(8.6%)
|
|
|
|
(8.6%)
|
|
|
|
(13.6%)
|
|
Non-GAAP income
(loss) from operations
|
|
7.3
|
%
|
|
|
0.6
|
%
|
|
|
3.7
|
%
|
|
|
(5.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
$
|
(4,570)
|
|
|
$
|
(4,112)
|
|
|
$
|
(17,966)
|
|
|
$
|
(18,163)
|
|
Non-GAAP
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
6,155
|
|
|
|
4,357
|
|
|
|
16,686
|
|
|
|
11,667
|
|
Acquisition-related expenses and purchase accounting
adjustment
|
|
160
|
|
|
|
--
|
|
|
|
2,109
|
|
|
|
--
|
|
Amortization of acquisition-related intangible
assets
|
|
896
|
|
|
|
--
|
|
|
|
2,388
|
|
|
|
--
|
|
Non-GAAP
Net income (loss)
|
$
|
2,641
|
|
|
$
|
245
|
|
|
$
|
3,217
|
|
|
$
|
(6,496)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in Non-GAAP basic net income (loss) per
share
|
|
44,785
|
|
|
|
40,120
|
|
|
|
43,830
|
|
|
|
39,240
|
|
Effect of
potentially dilutive shares
|
|
4,493
|
|
|
|
3,161
|
|
|
|
4,573
|
|
|
|
--
|
|
Weighted-average
shares used in Non-GAAP diluted net income (loss) per
share
|
|
49,278
|
|
|
|
43,281
|
|
|
|
48,403
|
|
|
|
39,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.06
|
|
|
$
|
0.01
|
|
|
$
|
0.07
|
|
|
$
|
(0.17)
|
|
Diluted
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
$
|
0.07
|
|
|
$
|
(0.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As adjusted for the
three and nine months ended September 30, 2017 to reflect the
adoption of Accounting Standards Update, ASU, No. 2014-09, Revenue
from Contracts with Customers (Topic 606).
|
Apptio,
Inc.
|
|
Free Cash Flow
Non-GAAP Reconciliation
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
*As
Adjusted
|
|
|
|
|
|
|
*As
Adjusted
|
|
|
|
|
|
Net cash (used
in) provided by operating activities
|
|
$
|
(293)
|
|
|
$
|
9,160
|
|
|
$
|
7,839
|
|
|
$
|
10,903
|
|
Less: purchases
of property and equipment
|
|
|
(842)
|
|
|
|
(601)
|
|
|
|
(2,238)
|
|
|
|
(2,837)
|
|
Free cash
flow
|
|
$
|
(1,135)
|
|
|
$
|
8,559
|
|
|
$
|
5,601
|
|
|
$
|
8,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As adjusted for the
three and nine months ended September 30, 2017 to reflect the
adoption of Accounting Standards Update, ASU, No. 2014-09, Revenue
from Contracts with Customers (Topic 606).
|
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(425) 279-6101
ir@apptio.com
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SOURCE Apptio