Revenue increased 33% year-over-year to $84.7 million
Enterprise ARR exceeds 50% of Total ARR
Record 40% of new ARR from non-APM products
SAN FRANCISCO--(BUSINESS WIRE)--
New Relic, Inc. (NYSE:NEWR), provider of real-time insights for
software-driven businesses, today announced financial results for the
second fiscal quarter ended September 30, 2017.
“In the second quarter, annualized recurring revenue (ARR) from our
enterprise accounts exceeded 50 percent for the first time and we closed
our first New Relic Infrastructure transaction greater than one million
dollars in ARR, as the world’s largest companies increasingly rely on
New Relic to dramatically increase their pace of innovation and quality
of customer experience," said Lew Cirne, CEO and founder, New Relic.
"Through our deep and ubiquitous instrumentation and industry leading
applied intelligence, New Relic is helping enterprises more quickly
identify and fix problems, deliver an amazing digital customer
experience, and build high-performing DevOps teams – so they can move
faster, with confidence.”
Second Quarter 2018 Financial Highlights:
-
Revenue of $84.7 million, growing 33% year-over-year, and up 6%
sequentially from the first quarter of fiscal 2018.
-
GAAP loss from operations was $(14.8) million for the second quarter
of fiscal 2018, compared to $(14.3) million for the second quarter of
fiscal 2017. Non-GAAP loss from operations was $(3.5) million for the
second quarter of fiscal 2018, compared to $(4.9) million for the
second quarter of fiscal 2017.
-
GAAP net loss per share was $(0.27) for the second quarter of fiscal
2018 based on 54.7 million weighted-average shares outstanding,
compared to $(0.28) for the second quarter of fiscal 2017 based on
51.3 million weighted-average shares outstanding. Non-GAAP net loss
per share was $(0.06) for the second quarter of fiscal 2018, compared
to $(0.09) for the second quarter of fiscal 2017.
-
Cash, cash equivalents and short-term investments were $227.5 million
at the end of the second quarter of fiscal 2018, compared with $227.3
million at the end of the first quarter of fiscal 2018.
Customer Highlights:
-
Paid Business Accounts as of September 30, 2017 of approximately
15,900.
-
51% of ARR from Enterprise Paid Business Accounts.
-
Dollar-Based Net Expansion Rate for the second quarter of fiscal 2018
of 123%.
-
New or expanded customers in the second quarter of fiscal 2018
included: 21st Century Fox, Absa Bank, Ancestry, Carnival Corporation,
Dominion Enterprises, Dunkin Brands Group, East Carolina University,
Expedia, Farm Credit Services of America, John Hancock Financial, Kurt
Geiger Limited, MercadoLibre, Morningstar, MuleSoft, Nationwide Mutual
Insurance Company, Norwegian Cruise Lines, Pearson, Procore
Technologies, Red Hat Inc., Reed Elsevier, Scripps Network, Testo SE &
Co. KGaA.
Second Quarter & Recent Business Highlights:
-
Held two-day, flagship FutureStack user
event in New York, on September 13-14, and introduced the New Relic
Platform Associate Certification, with a special Application
Performance Monitoring (APM) certification course.
-
Announced
expanded library of integrations with leading infrastructure
components to Apache, Cassandra, MySQL, NGINX Plus, RabbitMQ, Redis,
and StatsD through an updated release of the New Relic Infrastructure
SDK.
-
Introduced new
and expanded support for Microsoft Azure and Amazon Web Services
(AWS) technologies for New Relic APM and New Relic Infrastructure,
providing DevOps teams the ability to correlate, analyze, and alert on
application and infrastructure performance from a single source.
-
Announced the New
Relic Navigators Partner Program to help partners increase
speed and visibility for their customers’ cloud migration and
transformation projects with easy-to-deploy instrumentation, alerting,
and analytics.
-
Launched New Relic Radar, NRQL Baseline Alerting, and New Relic APM
Error Profiles, powered by New
Relic Applied Intelligence (NRAI) to help customers use monitoring
data to uncover and resolve problems faster.
-
Showcased plans to offer enhanced Distributed
Tracing — a new way to provide end-to-end visibility into how code
performs across the customer experience with distributed, multi-tier
application architectures.
Outlook:
New Relic is initiating its outlook for its third quarter of fiscal
2018, as well as updating its outlook for the full fiscal year 2018. New
Relic has not reconciled its expectations as to non-GAAP loss from
operations or non-GAAP net loss per share to their most directly
comparable GAAP measure as a result of uncertainty regarding, and the
potential variability of, reconciling items such as stock-based
compensation, lawsuit litigation expenses and employer payroll taxes on
equity incentive plans. Accordingly, reconciliation is not available
without unreasonable effort, although it is important to note that these
factors could be material to New Relic’s results computed in accordance
with GAAP.
-
Third Quarter Fiscal 2018 Outlook:
-
Revenue between $88.3 million and $89.8 million, representing
year-over-year growth of between 30% and 32%, respectively.
-
Non-GAAP loss from operations of between $(4.0) million and $(5.0)
million.
-
Non-GAAP net loss per share of between $(0.07) and $(0.09). This
assumes 55.3 million weighted average common shares outstanding.
-
Updated Full Year Fiscal 2018 Outlook:
-
Revenue between $346.5 million and $349.5 million, representing
year-over-year growth of between 31% and 33%, and an increase from
prior guidance of between $344.0 million and $348.0 million that
was issued on August 3, 2017.
-
Non-GAAP loss from operations of between $(13.0) million and
$(14.0) million, an improvement from prior guidance of between
$(14.0) million and $(17.0) million that was issued on August 3,
2017.
-
Non-GAAP net loss per share of between $(0.21) and $(0.22), an
improvement from prior guidance of between $(0.23) and $(0.28)
that was issued on August 3, 2017. This assumes 55.4 million
weighted average common shares outstanding.
Conference Call Details:
-
What: New Relic financial results for the second quarter fiscal
2018 and outlook for the third quarter and the full year of fiscal 2018
-
When: November 7, 2017 at 2:00 P.M. Pacific Time (5:00 P.M.
Eastern Time)
-
Dial in: To access the call in the U.S., please dial (833)
241-7256, and for international callers, please dial (647) 689-4220.
Callers may provide confirmation number 92748961 to access the call
more quickly, and are encouraged to dial into the call 10 to 15
minutes prior to the start to prevent any delay in joining.
-
Webcast: http://ir.newrelic.com
(live and replay)
-
Replay: Following the completion of the call through 11:59 PM
Eastern Time on November 14, 2017, a telephone replay will be
available by dialing (800) 585-8367 from the United States or (416)
621-4642 internationally with conference ID 92748961.
About New Relic
New Relic provides the real-time insights that software-driven
businesses need to innovate faster. New Relic’s cloud platform makes
every aspect of modern software and infrastructure observable, so
companies can find and fix problems faster, build high-performing DevOps
teams, and speed up transformation projects. Learn why more than 50% of
the Fortune 100 trust New Relic at newrelic.com.
Forward-Looking Statements
This press release and the earnings call referencing this press release
contain “forward-looking” statements, as that term is defined under the
federal securities laws, including but not limited to statements
regarding New Relic’s future financial performance, including its
outlook on financial results for the third quarter of fiscal 2018 and
for the full year of fiscal 2018, such as revenue, non-GAAP loss from
operations and non-GAAP net loss per share, free cash flow, non-GAAP
operating income, gross margins, deferred revenue, physical capital
expenditures, capitalized software, and cash from operations, New
Relic’s ability to achieve one-billion dollars in annualized revenue by
the end of fiscal 2022, market trends and opportunity, the growth of the
platform or any individual product, the timing and benefits from
announced future product features such as additional integrations for
New Relic Infrastructure with respect to the leading cloud platforms,
New Relic’s customer adoption, momentum, competitive advantages, and
value proposition to its customers, the timing and benefits from the
release of a product or set of features based on New Relic Applied
Intelligence, increased investment in distribution, pace of hiring
activity, and seasonality. These forward-looking statements are based on
New Relic’s current assumptions, expectations and beliefs and are
subject to substantial risks, uncertainties, assumptions and changes in
circumstances that may cause New Relic’s actual results, performance or
achievements to differ materially from those expressed or implied in any
forward-looking statement.
The risks and uncertainties referred to above include, but are not
limited to, New Relic's ability to generate sufficient revenue to
achieve and sustain profitability, particularly in light of its
significant ongoing expenses; New Relic's short operating history in an
evolving industry; New Relic’s ability to manage its significant recent
growth; fluctuation of New Relic’s quarterly results; the development of
the overall market for SaaS business software; the dependence of New
Relic’s business on its customers purchasing additional subscriptions
and products from it and renewing their subscriptions; New Relic’s
ability to develop enhancements to its products, increase adoption and
usage of its products and introduce new products that achieve market
acceptance; risks associated with recent changes to New Relic’s
management structure; New Relic’s ability to persuade its customers to
expand their use of New Relic’s products to additional use cases; New
Relic’s ability to determine optimal prices for its products; New
Relic’s ability to expand its marketing and sales capabilities and
increase sales of its solutions to large enterprises while mitigating
the risks associated with serving such customers; privacy concerns,
which could result in additional cost and liability to New Relic or
inhibit sales; changes in privacy laws, regulations and standards; New
Relic’s ability to effectively compete in the intensely competitive
market for application performance monitoring solutions and respond
effectively to rapidly changing technology, evolving industry standards
and changing customer needs, requirements or preferences; New Relic’s
dependence on lead generation strategies to drive sales and revenue;
interruptions or performance problems associated with New Relic’s
technology and infrastructure; defects or disruptions in New Relic’s
products; the expense and complexity of New Relic’s ongoing and planned
investments in data center hosting facilities; risks associated with
international operations; New Relic’s ability to protect its
intellectual property rights; and other “Risk Factors” set forth in New
Relic’s most recent filings with the Securities and Exchange Commission
(the “SEC”).
Further information on these and other factors that could affect New
Relic’s financial results and the forward-looking statements in this
press release is included in the filings New Relic makes with the SEC
from time to time, particularly under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations,” including the Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2017. Copies of these documents may be
obtained by visiting New Relic’s Investor Relations website at http://ir.newrelic.com
or the SEC's website at www.sec.gov.
New Relic assumes no obligation and does not intend to update these
forward-looking statements, except as required by law.
Non-GAAP Financial Measures
New Relic discloses the following non-GAAP financial measures in this
release and the earnings call referencing this press release: non-GAAP
loss from operations, non-GAAP net loss, non-GAAP gross profit, non-GAAP
gross margin, non-GAAP operating margin, non-GAAP sales and marketing,
non-GAAP research and development, non-GAAP general and administrative,
non-GAAP net loss per share and free cash flow. New Relic uses each of
these non-GAAP financial measures internally to understand and compare
operating results across accounting periods, for internal budgeting and
forecasting purposes, for short- and long-term operating plans, and to
evaluate New Relic’s financial performance. New Relic believes they are
useful to investors, as a supplement to GAAP measures, in evaluating its
operational performance, as further discussed below. New Relic’s
non-GAAP financial measures may not provide information that is directly
comparable to that provided by other companies in its industry, as other
companies in its industry may calculate non-GAAP financial results
differently, particularly related to non-recurring, unusual items. In
addition, there are limitations in using non-GAAP financial measures
because the non-GAAP financial measures are not prepared in accordance
with GAAP and may be different from non-GAAP financial measures used by
other companies and exclude expenses that may have a material impact on
New Relic’s reported financial results.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. A reconciliation of the historical non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included below in this press
release. Investors are encouraged to review the reconciliation of these
historical non-GAAP financial measures to their most directly comparable
GAAP financial measures.
New Relic defines non-GAAP gross profit, non-GAAP sales and marketing,
non-GAAP research and development, non-GAAP general and administrative,
non-GAAP operating loss and non-GAAP net loss as the respective GAAP
balances, adjusted for: (1) stock-based compensation expense, (2)
amortization of stock-based compensation capitalized in software
development costs, (3) the amortization of purchased intangibles, (4)
the transaction costs related to acquisition, (5) lawsuit litigation
expense, and (6) employer payroll tax expense on equity incentive plans,
as applicable. Non-GAAP net loss per share is calculated as non-GAAP net
loss divided by weighted average shares used to compute net loss per
share attributable to common stockholders. New Relic defines free cash
flow as GAAP cash from operations, minus capital expenditures, minus
capitalized software.
Management believes these non-GAAP financial measures are useful to
investors and others in assessing New Relic's operating performance due
to the following factors:
Stock-based compensation and amortization of stock-based compensation
capitalized in software development costs: New Relic utilizes
share-based compensation to attract and retain employees. It is
principally aimed at aligning their interests with those of its
stockholders and at long-term retention, rather than to address
operational performance for any particular period. As a result,
share-based compensation expenses vary for reasons that are generally
unrelated to financial and operational performance in any particular
period.
Amortization of purchased intangibles and transaction costs related
to acquisition. New Relic views amortization of purchased intangible
assets as items arising from pre-acquisition activities determined at
the time of an acquisition. While these intangible assets are evaluated
for impairment regularly, amortization of the cost of purchased
intangibles is an expense that is not typically affected by operations
during any particular period. Similarly, New Relic views acquisition
related expenses as events that are not necessarily reflective of
operational performance during a period.
Lawsuit litigation expense. New Relic may from time to time incur
charges or benefits that are outside of the ordinary course of New
Relic’s business related to litigation. New Relic believes it is useful
to exclude such charges or benefits because it does not consider such
amounts to be part of the ongoing operation of New Relic's business and
because of the singular nature of the claims underlying the matter.
Employer payroll tax expense on equity incentive plans. New Relic
excludes employer payroll tax expense on equity incentive plans as these
expenses are tied to the exercise or vesting of underlying equity awards
and the price of New Relic's common stock at the time of vesting or
exercise. As a result, these taxes may vary in any particular period
independent of the financial and operating performance of New Relic’s
business.
Additionally, New Relic's management believes that the non-GAAP
financial measure free cash flow is meaningful to investors because
management reviews cash flows generated from operations after taking
into consideration capital expenditures and the capitalization of
software development costs due to the fact that these expenditures are
considered to be a necessary component of ongoing operations.
Operating Metrics
New Relic’s dollar-based net expansion rate compares its recurring
subscription revenue from customers from one period to the next. It is
increased when customers increase their use of New Relic’s products, use
additional products, or upgrade to a higher subscription tier. New
Relic’s dollar-based net expansion rate is reduced when customers
decrease their use of New Relic’s products, use fewer products, or
downgrade to a lower subscription tier.
New Relic's monthly recurring revenue represents the revenue that New
Relic would contractually expect to receive from those customers over
the following month, without any increase or reduction in any of their
subscriptions. Similarly, annual recurring revenue represents the
revenue that New Relic would contractually expect to receive from those
customers over the following 12-month period, without any increase or
reduction in any of their subscriptions.
New Relic defines the number of paid business accounts at the end of any
particular period as the number of accounts at the end of the period as
identified by a unique account identifier for which New Relic has
recognized revenue on the last day of the period indicated. New Relic
defines an enterprise paid business account as a paid business account
that New Relic measures to have over 1,000 employees.
New Relic is a registered trademark of New Relic, Inc.
All product and company names herein may be trademarks of their
registered owners.
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenue
|
|
$
|
84,685
|
|
$
|
63,440
|
|
$
|
164,783
|
|
$
|
122,047
|
|
Cost of revenue
|
|
|
15,694
|
|
|
11,778
|
|
|
30,671
|
|
|
23,433
|
|
Gross profit
|
|
|
68,991
|
|
|
51,662
|
|
|
134,112
|
|
|
98,614
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
18,266
|
|
|
14,741
|
|
|
36,532
|
|
|
30,710
|
|
Sales and marketing
|
|
|
51,261
|
|
|
40,382
|
|
|
100,622
|
|
|
79,168
|
|
General and administrative
|
|
|
14,305
|
|
|
10,833
|
|
|
28,247
|
|
|
21,069
|
|
Total operating expenses
|
|
|
83,832
|
|
|
65,956
|
|
|
165,401
|
|
|
130,947
|
|
Loss from operations
|
|
|
(14,841)
|
|
|
(14,294)
|
|
|
(31,289)
|
|
|
(32,333)
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
512
|
|
|
250
|
|
|
969
|
|
|
471
|
|
Interest expense
|
|
|
(21)
|
|
|
(21)
|
|
|
(43)
|
|
|
(42)
|
|
Other income (expense), net
|
|
|
(152)
|
|
|
(126)
|
|
|
162
|
|
|
(237)
|
|
Loss before income taxes
|
|
|
(14,502)
|
|
|
(14,191)
|
|
|
(30,201)
|
|
|
(32,141)
|
|
Income tax provision (benefit)
|
|
|
189
|
|
|
(61)
|
|
|
424
|
|
|
60
|
|
Net loss
|
|
$
|
(14,691)
|
|
$
|
(14,130)
|
|
$
|
(30,625)
|
|
$
|
(32,201)
|
|
Net loss per share, basic and diluted
|
|
$
|
(0.27)
|
|
$
|
(0.28)
|
|
$
|
(0.57)
|
|
$
|
(0.63)
|
|
Weighted-average shares used to compute net loss per share, basic
and diluted
|
|
|
54,699
|
|
|
51,328
|
|
|
54,201
|
|
|
50,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
(In thousands, except par value; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
March 31, 2017
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
110,716
|
|
|
$
|
88,305
|
|
|
Short-term investments
|
|
|
116,743
|
|
|
|
118,101
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,004 and $1,117, respectively
|
|
|
39,510
|
|
|
|
62,032
|
|
|
Prepaid expenses and other current assets
|
|
|
10,857
|
|
|
|
8,169
|
|
|
Total current assets
|
|
|
277,826
|
|
|
|
276,607
|
|
|
Property and equipment, net
|
|
|
53,528
|
|
|
|
50,728
|
|
|
Restricted cash
|
|
|
8,024
|
|
|
|
8,115
|
|
|
Goodwill
|
|
|
11,828
|
|
|
|
11,828
|
|
|
Intangible assets, net
|
|
|
1,705
|
|
|
|
2,499
|
|
|
Other assets
|
|
|
5,531
|
|
|
|
2,492
|
|
|
Total assets
|
|
$
|
358,442
|
|
|
$
|
352,269
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
4,830
|
|
|
$
|
6,522
|
|
|
Accrued compensation and benefits
|
|
|
17,131
|
|
|
|
15,935
|
|
|
Other current liabilities
|
|
|
8,510
|
|
|
|
7,607
|
|
|
Deferred revenue
|
|
|
122,373
|
|
|
|
125,269
|
|
|
Total current liabilities
|
|
|
152,844
|
|
|
|
155,333
|
|
|
Deferred rent, non-current
|
|
|
7,685
|
|
|
|
8,272
|
|
|
Deferred revenue, non-current
|
|
|
578
|
|
|
|
1,135
|
|
|
Other liabilities, non-current
|
|
|
721
|
|
|
|
685
|
|
|
Total liabilities
|
|
|
161,828
|
|
|
|
165,425
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Common stock, $0.001 par value
|
|
|
55
|
|
|
|
53
|
|
|
Treasury stock - at cost (260 shares)
|
|
|
(263
|
)
|
|
|
(263
|
)
|
|
Additional paid-in capital
|
|
|
487,705
|
|
|
|
447,314
|
|
|
Accumulated other comprehensive loss
|
|
|
(94
|
)
|
|
|
(96
|
)
|
|
Accumulated deficit
|
|
|
(290,789
|
)
|
|
|
(260,164
|
)
|
|
Total stockholders’ equity
|
|
|
196,614
|
|
|
|
186,844
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
358,442
|
|
|
$
|
352,269
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
(In thousands; unaudited)
|
|
|
|
|
|
|
Six Months Ended September 30,
|
|
|
2017
|
|
2016
|
Cash flows from operating activities:
|
|
|
|
|
Net loss:
|
|
$
|
(30,625
|
)
|
|
$
|
(32,201
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
11,553
|
|
|
|
8,533
|
|
Stock-based compensation expense
|
|
|
19,845
|
|
|
|
15,601
|
|
Other
|
|
|
384
|
|
|
|
508
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
|
22,522
|
|
|
|
5,492
|
|
Prepaid expenses and other assets
|
|
|
(5,450
|
)
|
|
|
(2,758
|
)
|
Accounts payable
|
|
|
(530
|
)
|
|
|
757
|
|
Accrued compensation and benefits and other liabilities
|
|
|
2,786
|
|
|
|
(743
|
)
|
Deferred revenue
|
|
|
(3,453
|
)
|
|
|
5,654
|
|
Deferred rent
|
|
|
(431
|
)
|
|
|
2,994
|
|
Net cash provided by operating activities
|
|
|
16,601
|
|
|
|
3,837
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment
|
|
|
(14,394
|
)
|
|
|
(8,490
|
)
|
Decrease in restricted cash
|
|
|
91
|
|
|
|
—
|
|
Purchases of short-term investments
|
|
|
(55,126
|
)
|
|
|
(65,404
|
)
|
Proceeds from sale and maturity of short-term investments
|
|
|
56,432
|
|
|
|
87,415
|
|
Capitalized software development costs
|
|
|
(1,486
|
)
|
|
|
(1,733
|
)
|
Net cash provided by (used in) investing activities
|
|
|
(14,483
|
)
|
|
|
11,788
|
|
Cash flows from financing activities:
|
|
|
|
|
Proceeds from employee stock purchase plan
|
|
|
3,029
|
|
|
|
2,504
|
|
Proceeds from exercise of employee stock options
|
|
|
17,264
|
|
|
|
9,902
|
|
Net cash provided by financing activities
|
|
|
20,293
|
|
|
|
12,406
|
|
Net increase in cash and cash equivalents
|
|
|
22,411
|
|
|
|
28,031
|
|
Cash and cash equivalents, beginning of period
|
|
|
88,305
|
|
|
|
65,914
|
|
Cash and cash equivalents, end of period
|
|
$
|
110,716
|
|
|
$
|
93,945
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Reconciliation of gross profit and gross margin:
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
68,991
|
|
|
$
|
51,662
|
|
|
$
|
134,112
|
|
|
$
|
98,614
|
|
|
Plus: Stock-based compensation
|
|
|
603
|
|
|
|
513
|
|
|
|
1,129
|
|
|
|
894
|
|
|
Plus: Amortization of purchased intangibles
|
|
|
397
|
|
|
|
200
|
|
|
|
794
|
|
|
|
400
|
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
238
|
|
|
|
169
|
|
|
|
474
|
|
|
|
334
|
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
39
|
|
|
|
30
|
|
|
|
85
|
|
|
|
52
|
|
|
Non-GAAP gross profit
|
|
$
|
70,268
|
|
|
$
|
52,574
|
|
|
$
|
136,594
|
|
|
$
|
100,294
|
|
|
GAAP gross margin
|
|
|
81
|
%
|
|
|
81
|
%
|
|
|
81
|
%
|
|
|
81
|
%
|
|
Non-GAAP adjustments
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
1
|
%
|
|
Non-GAAP gross margin
|
|
|
83
|
%
|
|
|
83
|
%
|
|
|
83
|
%
|
|
|
82
|
%
|
|
Reconciliation of operating expenses:
|
|
|
|
|
|
|
|
|
|
GAAP research and development
|
|
$
|
18,266
|
|
|
$
|
14,741
|
|
|
$
|
36,532
|
|
|
$
|
30,710
|
|
|
Less: Stock-based compensation
|
|
|
(3,305
|
)
|
|
|
(2,522
|
)
|
|
|
(6,141
|
)
|
|
|
(5,063
|
)
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
(169
|
)
|
|
|
(88
|
)
|
|
|
(431
|
)
|
|
|
(216
|
)
|
|
Non-GAAP research and development
|
|
$
|
14,792
|
|
|
$
|
12,131
|
|
|
$
|
29,960
|
|
|
$
|
25,431
|
|
|
GAAP sales and marketing
|
|
$
|
51,261
|
|
|
$
|
40,382
|
|
|
$
|
100,622
|
|
|
$
|
79,168
|
|
|
Less: Stock-based compensation
|
|
|
(3,875
|
)
|
|
|
(3,409
|
)
|
|
|
(8,181
|
)
|
|
|
(6,171
|
)
|
|
Less: Amortization of purchased intangibles
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
(25
|
)
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
(218
|
)
|
|
|
(148
|
)
|
|
|
(594
|
)
|
|
|
(277
|
)
|
|
Non-GAAP sales and marketing
|
|
$
|
47,168
|
|
|
$
|
36,811
|
|
|
$
|
91,847
|
|
|
$
|
72,695
|
|
|
GAAP general and administrative
|
|
$
|
14,305
|
|
|
$
|
10,833
|
|
|
$
|
28,247
|
|
|
$
|
21,069
|
|
|
Less: Stock-based compensation
|
|
|
(2,439
|
)
|
|
|
(1,819
|
)
|
|
|
(4,394
|
)
|
|
|
(3,473
|
)
|
|
Less: Lawsuit litigation
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(4
|
)
|
|
Less: Amortization of purchased intangibles
|
|
|
-
|
|
|
|
(41
|
)
|
|
|
-
|
|
|
|
(75
|
)
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
(65
|
)
|
|
|
(395
|
)
|
|
|
(138
|
)
|
|
|
(605
|
)
|
|
Non-GAAP general and administrative
|
|
$
|
11,801
|
|
|
$
|
8,576
|
|
|
$
|
23,715
|
|
|
$
|
16,912
|
|
|
Reconciliation of loss from operations and operating margin:
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
$
|
(14,841
|
)
|
|
$
|
(14,294
|
)
|
|
$
|
(31,289
|
)
|
|
$
|
(32,333
|
)
|
|
Plus: Stock-based compensation
|
|
|
10,222
|
|
|
|
8,263
|
|
|
|
19,845
|
|
|
|
15,601
|
|
|
Plus: Lawsuit litigation
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
4
|
|
|
Plus: Amortization of purchased intangibles
|
|
|
397
|
|
|
|
255
|
|
|
|
794
|
|
|
|
500
|
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
238
|
|
|
|
169
|
|
|
|
474
|
|
|
|
334
|
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
491
|
|
|
|
661
|
|
|
|
1,248
|
|
|
|
1,150
|
|
|
Non-GAAP loss from operations
|
|
$
|
(3,493
|
)
|
|
$
|
(4,944
|
)
|
|
$
|
(8,928
|
)
|
|
$
|
(14,744
|
)
|
|
GAAP operating margin
|
|
|
(18
|
)%
|
|
|
(23
|
)%
|
|
|
(19
|
)%
|
|
|
(26
|
)%
|
|
Non-GAAP adjustments
|
|
|
14
|
%
|
|
|
15
|
%
|
|
|
14
|
%
|
|
|
14
|
%
|
|
Non-GAAP operating margin
|
|
|
(4
|
)%
|
|
|
(8
|
)%
|
|
|
(5
|
)%
|
|
|
(12
|
)%
|
|
Reconciliation of net loss:
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(14,691
|
)
|
|
$
|
(14,130
|
)
|
|
$
|
(30,625
|
)
|
|
$
|
(32,201
|
)
|
|
Plus: Stock-based compensation
|
|
|
10,222
|
|
|
|
8,263
|
|
|
|
19,845
|
|
|
|
15,601
|
|
|
Plus: Lawsuit litigation
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
4
|
|
|
Plus: Amortization of purchased intangibles
|
|
|
397
|
|
|
|
255
|
|
|
|
794
|
|
|
|
500
|
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
238
|
|
|
|
169
|
|
|
|
474
|
|
|
|
334
|
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
491
|
|
|
|
661
|
|
|
|
1,248
|
|
|
|
1,150
|
|
|
Non-GAAP net loss
|
|
$
|
(3,343
|
)
|
|
$
|
(4,780
|
)
|
|
$
|
(8,264
|
)
|
|
$
|
(14,612
|
)
|
|
Reconciliation of net loss per share, basic and diluted:
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share, basic and diluted
|
|
$
|
(0.27
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.57
|
)
|
|
$
|
(0.63
|
)
|
|
Non-GAAP adjustments to net loss
|
|
|
0.21
|
|
|
|
0.19
|
|
|
|
0.42
|
|
|
|
0.34
|
|
|
Non-GAAP net loss per share, basic and diluted
|
|
$
|
(0.06
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.29
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Cash Flows from Operating Activities to
Free Cash Flows
|
|
(In thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net cash provided by (used in) operating activities
|
|
$
|
(1,080
|
)
|
|
$
|
431
|
|
|
$
|
16,601
|
|
|
$
|
3,837
|
|
|
Capital expenditures
|
|
|
(6,980
|
)
|
|
|
(6,963
|
)
|
|
|
(14,394
|
)
|
|
|
(8,490
|
)
|
|
Capitalized software development costs
|
|
|
(754
|
)
|
|
|
(1,021
|
)
|
|
|
(1,486
|
)
|
|
|
(1,733
|
)
|
|
Free cash flows (Non-GAAP)
|
|
$
|
(8,814
|
)
|
|
$
|
(7,553
|
)
|
|
$
|
721
|
|
|
$
|
(6,386
|
)
|
|
Net cash provided by (used in) investing activities
|
|
$
|
(2,423
|
)
|
|
$
|
3,128
|
|
|
$
|
(14,483
|
)
|
|
$
|
11,788
|
|
|
Net cash provided by financing activities
|
|
$
|
8,921
|
|
|
$
|
8,731
|
|
|
$
|
20,293
|
|
|
$
|
12,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20171107006667/en/
Source: New Relic Corporate Communications