Market Newsdesk

May 4, 2023 4:24 pm

Alignment Healthcare Reports Strong First Quarter 2023 Results; Exceeds Outlook Across All Four Critical KPIs

Reports $439.2 million in total revenue, up 27.1% year-over-year
Medicare Advantage enrollment increases to approximately 109,700 members
Delivers consistent performance underpinned by strong care management capabilities and stable utilization trends

ORANGE, Calif., May 04, 2023 (GLOBE NEWSWIRE) — Alignment Healthcare, Inc. (NASDAQ: ALHC), a tech-enabled Medicare Advantage company, today reported financial results for its first quarter ended March 31, 2023.

“Alignment Healthcare’s first quarter results demonstrate robust performance across our markets, exceeding guidance on our four key metrics – membership, revenue, adjusted gross profit and adjusted EBITDA – by putting clinical excellence at the center of the member experience,” said John Kao, founder and CEO. “I am proud of our employees’ commitment to service with heart as we continue to grow.”

First Quarter 2023 Financial Highlights

All comparisons, unless otherwise noted, are to the three months ended March 31, 2022.

Health plan membership at the end of the quarter was approximately 109,700, up 16.5% year over year
Total revenue was $439.2 million, up 27.1% year over year
Health plan premium revenue of $399.7 million represented 20.8% growth year over year
Adjusted gross profit was $45.4 million and loss from operations was ($32.5) million
- Adjusted gross profit excludes depreciation and amortization of $5.0 million and selling, general, and administrative expenses of $70.4 million (which includes $19.5 million of equity-based compensation). Adjusted gross profit also excludes an additional $2.5 million of equity-based compensation recorded within medical expenses
- Medical benefits ratio based on adjusted gross profit was 89.7%
Adjusted EBITDA was ($5.2) million and net loss was ($37.4) million

Adjusted Gross Profit is reconciled as follows:

	Three Months Ended March 31,
		2023			2022
(dollars in thousands)
Loss from operations	$	(32,489	)	$	(36,475	)
Add back:
Equity-based compensation (medical expenses)		2,524			3,121
Depreciation (medical expenses)		61			43
Depreciation and amortization		4,921			3,950
Selling, general, and administrative expenses		70,408			74,293
Total add back		77,914			81,407
Adjusted gross profit	$	45,425		$	44,932
Adjusted gross profit %		10.3	%		13.0	%
Medical benefit ratio		89.7	%		87.0	%

Adjusted EBITDA is reconciled as follows:

	Three Months Ended March 31,
		2023			2022
(dollars in thousands)
Net loss	$	(37,371	)	$	(40,817	)
Less: Net loss attributable to noncontrolling interest		87			–
Add back:
Interest expense		5,019			4,401
Depreciation and amortization		4,982			3,993
Income taxes		1			–
EBITDA		(27,282	)		(32,423	)
Equity-based compensation(1)		21,978			28,047
Acquisition expenses(2)		132			486
Adjusted EBITDA	$	(5,172	)	$	(3,890	)

(1)	Represents equity-based compensation related to grants made in the applicable year, as well as equity-based compensation related to the timing of the IPO, which includes previously issued stock appreciation rights (“SARs”) liability awards, modifications related to transaction vesting units, and grants made in conjunction with the IPO.
(2)	Represents acquisition-related fees, such as legal and advisory fees, that are non-capitalizable.

Outlook for Second Quarter and Fiscal Year 2023

	Three Months Ending June 30, 2023		Twelve Months Ending December 31, 2023
*$ Millions*	Low	High	Low	High
Health Plan Membership	111,200	111,400	113,000	115,000
Revenue	$433	$438	$1,710	$1,735
Adjusted Gross Profit¹	$47	$50	$205	$217
Adjusted EBITDA²	($13)	($10)	($34)	($20)

_______________________

Adjusted gross profit is a non-GAAP financial measure that is presented as supplemental disclosure, that we define as loss from operations before depreciation and amortization, clinical equity-based compensation expense, and selling, general, and administrative expenses. We cannot reconcile our estimated ranges for adjusted gross profit to loss from operations, the most directly comparable GAAP measure, and cannot provide estimated ranges for loss from operations, without unreasonable efforts because of the uncertainty around certain items that may impact loss from operations, including equity-based compensation expense and depreciation and amortization, that are not within our control or cannot be reasonably predicted.
Adjusted EBITDA is a non-GAAP financial measure that is presented as supplemental disclosure, that we define as net loss before interest expense, income taxes, depreciation and amortization expense, reorganization and transaction-related expenses and equity-based compensation expense. We cannot reconcile our estimated ranges for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and cannot provide estimated ranges for net loss, without unreasonable efforts because of the uncertainty around certain items that may impact net loss, including equity-based compensation expense and depreciation and amortization, that are not within our control or cannot be reasonably predicted.

Conference Call Details

The company will host a conference call at 5:30 p.m. EDT today to discuss these results and management’s outlook for future financial and operational performance. A live audio webcast will be available online at https://ir.alignmenthealthcare.com/. At the start of the conference call, participants may access the webcast at the following link: https://edge.media-server.com/mmc/p/dtu94ypg. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web links, and will remain available for approximately 12 months.

About Alignment Health

Alignment Health is championing a new path in senior care that empowers members to age well and live their most vibrant lives. A consumer brand name of Alignment Healthcare (NASDAQ: ALHC), Alignment Health is a tech-enabled Medicare Advantage company that offers more than 40 benefits-rich, value-driven plans that serve 52 counties across six states. The company partners with nationally recognized and trusted local providers to deliver coordinated care, powered by its customized care model, 24/7 concierge care team and purpose-built technology, AVA^Ⓡ. Based in California, the company’s mission-focused team makes high-quality, low-cost care a reality for members every day. As it expands its offerings and grows its national footprint, Alignment upholds its core values of leading with a serving heart and putting the senior first. For more information, visit www.alignmenthealth.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for the quarter ending June 30, 2023, and year ending December 31, 2023. Forward-looking statements are subject to risks and uncertainties and are based on assumptions that may prove to be inaccurate, which 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. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to attract new members and enter new markets, including the need for certain governmental approvals; our ability to maintain a high rating for our plans on the Five Star Quality Rating System; our ability to develop and maintain satisfactory relationships with care providers that service our members; risks associated with being a government contractor; changes in laws and regulations applicable to our business model; risks related to our indebtedness, including the potential for rising interest rates; changes in market or industry conditions and receptivity to our technology and services; results of litigation or a security incident; the impact of shortages of qualified personnel and related increases in our labor costs; and the impact of COVID-19 on our business and results of operation. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our Annual Report on Form 10-K for the year ended December 31, 2022, and the other periodic reports we file with the SEC. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.

Condensed Consolidated Balance Sheets

(in thousands, except par value and share amounts)

	March 31, 2023			December 31, 2022
Assets
Current Assets:
Cash and cash equivalents	$	384,261		$	409,549
Accounts receivable (less allowance for credit losses of $1 at March 31, 2023 and $0 at December 31, 2022, respectively)		125,276			92,890
Short-term investments		103,483			–
Prepaid expenses and other current assets		57,894			42,107
Total current assets		670,914			544,546
Property and equipment, net		39,613			37,169
Right of use asset, net		5,077			5,825
Goodwill and intangible assets, net		40,191			40,288
Other assets		5,956			6,035
Total assets	$	761,751		$	633,863
Liabilities and Stockholders’ Equity
Current Liabilities:
Medical expenses payable	$	185,670		$	170,135
Accounts payable and accrued expenses		22,865			31,980
Deferred premium revenue		141,081			308
Accrued compensation		24,571			27,538
Total current liabilities		374,187			229,961
Long-term debt, net of debt issuance costs		161,121			160,902
Long-term portion of lease liabilities		2,503			3,698
Total liabilities		537,811			394,561
Commitments and Contingencies (Note 12)
Stockholders’ Equity:
Preferred stock, $.001 par value; 100,000,000 and 100,000,000 shares authorized as of March 31, 2023 and December 31, 2022, respectively; no shares issued and outstanding as of March 31, 2023 and December 31, 2022		–			–
Common stock, $.001 par value; 1,000,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 188,475,278 and 187,280,015 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		188			187
Additional paid-in capital		992,158			970,180
Accumulated deficit		(769,525	)		(732,241	)
Total Alignment Healthcare, Inc. stockholders’ equity		222,821			238,126
Noncontrolling interest		1,119			1,176
Total stockholders’ equity		223,940			239,302
Total liabilities and stockholders’ equity	$	761,751		$	633,863

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(Quarterly data unaudited)

	Three Months Ended March 31,
		2023			2022
Revenues:
Earned premiums	$	434,812		$	345,292
Other		4,343			234
Total revenues		439,155			345,526
Expenses:
Medical expenses		396,315			303,758
Selling, general, and administrative expenses		70,408			74,293
Depreciation and amortization		4,921			3,950
Total expenses		471,644			382,001
Loss from operations		(32,489	)		(36,475	)
Other expenses:
Interest expense		5,019			4,401
Other income		(138	)		(59	)
Total other expenses		4,881			4,342
Loss before income taxes		(37,370	)		(40,817	)
Provision for income taxes		1			–
Net loss	$	(37,371	)	$	(40,817	)
Less: Net loss attributable to noncontrolling interest		87			–
Net loss attributable to Alignment Healthcare, Inc.	$	(37,284	)	$	(40,817	)
Total weighted-average common shares outstanding – basic and diluted		183,113,945			178,874,192
Net loss per share – basic and diluted	$	(0.20	)	$	(0.23	)

Condensed Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended March 31,
		2023			2022
Operating Activities:
Net loss	$	(37,371	)	$	(40,817	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Provision for credit loss		1			53
Depreciation and amortization		4,982			3,993
Amortization-investment discount		(351	)		–
Amortization-debt issuance costs		305			566
Amortization of payment-in-kind interest		–			1,070
Equity-based compensation		21,978			28,047
Non-cash lease expense		717			715
Changes in operating assets and liabilities:
Accounts receivable		(32,387	)		(26,050	)
Prepaid expenses and other current assets		(15,786	)		(5,079	)
Other assets		4			(167	)
Medical expenses payable		15,535			29,077
Accounts payable and accrued expenses		(9,211	)		(1,619	)
Deferred premium revenue		140,773			(37	)
Accrued compensation		(2,966	)		(364	)
Lease liabilities		(1,113	)		(1,026	)
Net cash provided by (used in) operating activities		85,110			(11,638	)
Investing Activities:
Purchase of business, net of cash received		–			(1,113	)
Purchase of investments		(104,243	)		(850	)
Sale of investments		1,100			750
Acquisition of property and equipment		(7,285	)		(4,914	)
Net cash used in investing activities		(110,428	)		(6,127	)
Financing Activities:
Contributions from noncontrolling interest holders		30			–
Net cash provided by financing activities		30			–
Net decrease in cash		(25,288	)		(17,765	)
Cash, cash equivalents and restricted cash at beginning of period		411,299			468,350
Cash, cash equivalents and restricted cash at end of period	$	386,011		$	450,585
Supplemental disclosure of cash flow information:
Cash paid for interest	$	4,277		$	2,758
Supplemental non-cash investing and financing activities:
Acquisition of property in accounts payable	$	10		$	331
Purchase of business in accounts payable	$	–		$	240

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the total above:

	March 31, 2023		March 31, 2022
Cash and cash equivalents	$	384,261	$	448,835
Restricted cash in other assets		1,750		1,750
Total	$	386,011	$	450,585

Non-GAAP Financial Measures

Certain of these financial measures are considered “non-GAAP” financial measures within the meaning of Item 10 of Regulation S-K promulgated by the SEC. We believe that non-GAAP financial measures provide an additional way of viewing aspects of our operations that, when viewed with the GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. These non-GAAP financial measures are also used by our management to evaluate financial results and to plan and forecast future periods. However, non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP measures used by other companies, including our competitors. To supplement our consolidated financial statements presented on a GAAP basis, we disclose the following non-GAAP measures: Medical Benefits Ratio, Adjusted EBITDA and Adjusted Gross Profit as these are performance measures that our management uses to assess our operating performance. Because these measures facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes and in evaluating acquisition opportunities.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we define as net loss before interest expense, income taxes, depreciation and amortization expense, reorganization and transaction-related expenses and equity-based compensation expense.

Adjusted EBITDA should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA in lieu of net loss, which is the most directly comparable financial measure calculated in accordance with GAAP.

Our use of the term Adjusted EBITDA may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies.

Medical Benefits Ratio (MBR)

We calculate our MBR by dividing total medical expenses, excluding depreciation and equity-based compensation, by total revenues in a given period.

Adjusted Gross Profit

Adjusted Gross Profit is a non-GAAP financial measure that we define as loss from operations before depreciation and amortization, clinical equity-based compensation expense, and selling, general, and administrative expenses.

Adjusted Gross Profit should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted Gross Profit in lieu of loss from operations, which is the most directly comparable financial measure calculated in accordance with GAAP.

Our use of the term Adjusted Gross Profit may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies.

Investor Contact
Harrison Zhuo
[email protected]

Media Contact
Maggie Habib
mPR, Inc. for Alignment Health
[email protected]

May 4, 2023 4:24 pm

KORU Medical Systems, Inc. Announces 2023 First Quarter Financial Results

KORU Medical Systems, Inc. Announces 2023 First Quarter Financial Results

Strong Start to 2023 With 18% Revenue Growth

MAHWAH, N.J.–(BUSINESS WIRE)–KORU Medical Systems, Inc. (NASDAQ: KRMD) (“KORU Medical” or the “Company”), a leading medical technology company focused on the development, manufacturing, and commercialization of innovative and easy-to-use specialty infusion solutions that improve quality of life for patients, today reported financial results for the first quarter ended March 31, 2023.

Highlights:

First quarter net revenue growth versus prior year of 18% to $7.4 million, marking the sixth consecutive quarter of double-digit growth with strength in all three businesses
U.S. Core business growth of 15% outpacing the subcutaneous immunoglobulin drug market growth
International Core business growth of 23%, driven by growth in several markets and increases in SCIg global drug availability
Novel Therapies business growth of 62%, increasing the total number of pharmaceutical collaborations to 15
Sequential quarterly gross margin improvement to 56.1%, and completion of the manufacturing transition paving the way to exit the year with 60%-62% gross margin
Reaffirming 2023 net revenues expected to be between $32.5 and $33.5 million, representing growth in the range of 17-20%

“The first quarter represents continued momentum towards our Vision 26 strategy, as our team delivered strong double-digit growth across all three of our businesses,” said Linda Tharby, KORU Medical’s President and CEO. “In our US core business, we continue to increase our leadership position in a growing home subcutaneous drug delivery market. We are seeing impact from our geographic expansion strategy with strong results in our international core business. Our efforts in the novel therapies business to bring new drugs and patients to our Freedom System is accelerating with increased numbers of total collaborations and pipeline opportunities. We are excited by a strong start to our year, and by the value we are creating for our patients, customers, and shareholders.”

2023 First Quarter Financial Results

	Three Months Ended March 31,				Change from Prior Year
	2023		2022		$			%
Net Revenues
Domestic Core	$	5,719,135	$	4,993,536	$	725,599	$	14.5	%
International Core		1,097,490		894,942		202,548		22.6	%
Novel Therapies		575,980		355,852		220,128		61.9	%
Total	$	7,392,605	$	6,244,330	$	1,148,275	$	18.4	%

Total net revenues increased $1.1 million, or 18%, for the three months ended March 31, 2023, as compared with the same period last year, with double-digit growth across all businesses. Domestic Core growth of 15% was primarily driven by increased growth in pumps and consumables from a growing SCIg market, new account wins, increased prefilled syringe adoption, and increases in average selling prices. International Core growth of 23%, was driven by strength across several EU markets, expanded distribution, and growing global Immunoglobulin drug volume availability. Novel Therapies net revenues grew by 62% primarily related to services performed on an NRE innovation development agreement for a pharmaceutical customer.

Gross profit increased $0.5 million or 15% in the three months ended March 31, 2023, compared to the same period in 2022. The 2023 first quarter gross profits increase was driven by the increase in net revenues of $1.1 million as described above. Gross profit as a percentage of revenues decreased to 56.1% compared to 58.0% from the first quarter of 2022. The decline in the gross profit as a percentage of revenues was primarily caused by higher manufacturing costs associated with labor and materials in connection with our transition from Chester, partially offset by an increase in average selling prices.

Total operating expenses for the first quarter of 2023, were $7.2 million, compared to $6.7 million for the same period in 2022. The increase in operating expenses was primarily due to investments in research and development.

Net loss for the first quarter of 2023 was $2.4 million, or $(0.05) per diluted share, compared to a net loss of $2.5 million, or ($0.06) per diluted share for the same period of 2022. Net loss included a tax benefit of $0.6 million for the first quarter of 2023.

Assumptions and Outlook for Full Year 2023

KORU Medical reaffirms all prior guidance for 2023. The Company’s guidance for full year 2023 reflects numerous assumptions that could affect its business, based on the information management has as of this date, which includes, SCIg market growth rate of ~10%, prefilled syringe penetration of 15-20%, plasma supply, clinical trial activity and expansion of the novel therapies pipeline, inflationary impact (including labor and supply price increases), third party contract manufacturing execution, supply chain and labor shortage impacts, and timely receipt of other receivable credits. Management will discuss its outlook and several of its assumptions on its first quarter 2023 earnings call.

KORU Medical reaffirms:

Full year 2023 net revenues between $32.5 and $33.5 million, representing growth in the range of 17%-20%
Gross margin between 58% and 60% on a full year, with first half margin expected between 55% to 57% and a planned exit between 60% and 62%
Cash balance at year-end 2023 greater than $10.0 million

Conference Call and Webcast Details

The Company will host a live conference call and webcast to discuss these results and provide a corporate update on Thursday, May 4, 2023, at 4:30 PM ET.

To participate in the call, please dial (800)-734-8507 (domestic) or (212)-231-2925 (international) and provide conference ID: 22026692. The live webcast will be available on the IR Calendar on the News/Events page of the Investors section of KORU Medical’s website.

Non-GAAP Measures

This press release includes the non-GAAP financial measures “Adjusted EBITDA” and “Adjusted Diluted Earnings Per Share” that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on KORU Medical’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. Non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial results. Reconciliations of the Company’s non-GAAP measures are included at the end of this press release.

About KORU Medical Systems

KORU Medical Systems develops, manufactures, and commercializes innovative and easy-to-use subcutaneous drug delivery systems that improve quality of life for patients around the world. The FREEDOM Syringe Infusion System currently includes the FREEDOM60® and FreedomEdge® Syringe Infusion Drivers, Precision Flow Rate Tubing™ and HIgH-Flo Subcutaneous Safety Needle Sets™. These devices are used for infusions administered in the home and alternate care settings. For more information, please visit www.korumedical.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All statements that are not historical fact are forward-looking statements, including, but not limited to, expected financial outlook and operating performance for fiscal 2022. Forward-looking statements discuss the Company’s current expectations and projections relating to its financial position, results of operations, plans, objectives, future performance and business. Forward-looking statements can be identified by words such as “outlook”, “expect”, “plan”, “believe” and “will”. 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, uncertainties associated with the shift to increased healthcare delivery in the home, new patient diagnoses, customer ordering patterns, global health crises, innovation and competition, labor and supply price increases, inflationary impacts, labor supply, and those risks and uncertainties included under the captions “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which are on file with the SEC and available on our website at www.korumedical.com/investors and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of May 4,2023. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

KORU MEDICAL SYSTEMS, INC.
BALANCE SHEETS
(UNAUDITED)

	March 31,			December 31,
	2023			2022

ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	12,224,865		$	17,408,257
Accounts receivable less allowance for doubtful accounts of $21,459 for March 31, 2023, and for December 31, 2022		4,164,513			3,558,884
Inventory		6,638,418			6,404,867
Other Receivables		1,014,761			972,396
Prepaid expenses		1,172,101			1,457,232
TOTAL CURRENT ASSETS		25,214,658			29,801,636
Property and equipment, net		3,906,067			3,886,975
Intangible assets, net of accumulated amortization of $341,755 and $325,872 at March 31, 2023 and December 31, 2022, respectively		782,531			787,182
Operating lease right-of-use assets		3,706,874			3,786,545
Deferred income tax assets, net		4,544,880			3,967,480
Other assets		98,970			102,625
TOTAL ASSETS	$	38,253,980		$	42,332,443

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	1,503,120		$	2,391,799
Accrued expenses		1,591,737			2,889,941
Note Payable		218,403			433,295
Other Liabilities		261,544			257,337
Accrued payroll and related taxes		500,415			542,399
Financing lease liability – current		99,694			98,335
Operating lease liability – current		349,304			345,834
TOTAL CURRENT LIABILITIES		4,524,217			6,958,940
Financing lease liability, net of current portion		368,844			394,283
Operating lease liability, net of current portion		3,564,619			3,653,257
TOTAL LIABILITIES		8,457,680			11,006,480

STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 48,960,766 and 48,861,891 shares issued 45,540,264 and 45,441,389 shares outstanding at March 31, 2023, and December 31, 2022, respectively		489,608			488,619
Additional paid-in capital		45,132,350			44,252,117
Treasury stock, 3,420,502 shares at March 31, 2023 and December 31, 2022, at cost		(3,843,562	)		(3,843,562	)
Retained deficit		(11,982,096	)		(9,571,211	)
TOTAL STOCKHOLDERS’ EQUITY		29,796,300			31,325,963
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	38,253,980		$	42,332,443

The accompanying notes are an integral part of these financial statements.

KORU MEDICAL SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended
	March 31,
	2023			2022

NET SALES	$	7,392,605		$	6,244,330
Cost of goods sold		3,245,570			2,622,025
Gross Profit		4,147,035			3,622,305

OPERATING EXPENSES
Selling, general and administrative		5,425,877			5,491,213
Research and development		1,564,869			1,148,355
Depreciation and amortization		213,117			109,252
Total Operating Expenses		7,203,863			6,748,820

Net Operating Loss		(3,056,828	)		(3,126,515	)

Non-Operating Income/(Expense)
Loss on currency exchange		(680	)		(7,135	)
Loss on disposal of fixed assets, net		(56,279	)		—
Interest income (expense), net		125,502			(1,463	)
TOTAL OTHER INCOME/(EXPENSE)		68,543			(8,598	)

LOSS BEFORE INCOME TAXES		(2,988,285	)		(3,135,113	)

Income Tax Benefit		577,400			597,599

NET LOSS	$	(2,410,885	)	$	(2,537,514	)

NET LOSS PER SHARE

Basic	$	(0.05	)	$	(0.06	)
Diluted	$	(0.05	)	$	(0.06	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

Basic		45,487,593			44,667,977
Diluted		45,487,593			44,667,977

The accompanying notes are an integral part of these financial statements.

KORU MEDICAL SYSTEMS, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)

	For the Three Months Ended
	March 31,
	2023			2022

CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(2,410,885	)	$	(2,537,514	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		881,222			837,556
Depreciation and amortization		213,117			109,252
Deferred income taxes		(577,400	)		(597,599	)
Loss on disposal of fixed assets		56,279			—
ROU landlord credit		(5,497	)		—
Changes in operating assets and liabilities:
(Increase)/Decrease in accounts receivable		(647,994	)		447,489
Decrease in other receivables		—			38,145
(Increase)/Decrease in inventory		(233,551	)		88,601
Decrease/(Increase) in prepaid expenses and other assets		288,786			(11,805	)
Increase in other Liabilities		4,207			25,625
(Decrease)/Increase in accounts payable		(888,679	)		40,447
(Decrease)/Increase in accrued payroll and related taxes		(41,984	)		345,712
Decrease in accrued expenses		(1,298,204	)		(537,981	)

NET CASH USED IN OPERATING ACTIVITIES		(4,660,583	)		(1,752,072	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(272,605	)		(750,908	)
Purchases of intangible assets		(11,232	)		(1,694	)
NET CASH USED IN INVESTING ACTIVITIES		(283,837	)		(752,602	)

CASH FLOWS FROM FINANCING ACTIVITIES
Payments on indebtedness		(214,892	)		(252,968	)
Payments on finance lease liability		(24,080	)		—
NET CASH USED IN FINANCING ACTIVITIES		(238,972	)		(252,968	)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(5,183,392	)		(2,757,642	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		17,408,257			25,334,889
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	12,224,865		$	22,577,247

Supplemental Information
Cash paid during the periods for:
Interest	$	12,326		$	4,425
Income Taxes	$	—		$	—

Schedule of Non-Cash Operating, Investing and Financing Activities:
Issuance of common stock as compensation	$	175,776		$	142,500

The accompanying notes are an integral part of these financial statements.

KORU MEDICAL SYSTEMS, INC.
SUPPLEMENTAL INFORMATION
(UNAUDITED)

	Three Months Ended
Reconciliation of GAAP Net Loss	March 31,
to Non-GAAP Adjusted EBITDA:	2023			2022
GAAP Net Loss	$	(2,410,885	)	$	(2,537,514	)
Tax Benefit		(577,400	)		(597,599	)
Depreciation/Amortization		213,117			109,252
Interest Income, Net		(125,502	)		1,463
Reorganization Charges		—			295,000
Manufacturing Initiative Expenses		49,053			38,005
Stock-based Compensation Expense		881,222			837,556
Non-GAAP Adjusted EBITDA	$	(1,970,395	)	$	(1,853,837	)

Reconciliation of Reported Diluted EPS to	Three Months Ended March 31,
*Non-GAAP Adjusted Diluted EPS:**	2023			2022
Reported Diluted Earnings Per Share	$	(0.05	)	$	(0.06	)
Reorganization Charges		—			0.01
Manufacturing Initiative Expenses		—			—
Reorganization Stock-based Compensation Expense		—			—
Tax (Expense) adjustment		—			—
Non-GAAP Adjusted Diluted Earnings Per Share	$	(0.05	)	$	(0.05	)

*Numbers presented are rounded to the nearest whole cent

Reorganization Charges. We have excluded the effect of reorganization charges in calculating our non-GAAP measures. In 2022 we incurred severance expenses related to the reorganization of the leadership team, which we would not have otherwise incurred in periods presented as part of continuing operations.

Manufacturing Initiative Expenses. We have excluded the effect of expenses related to creating manufacturing efficiencies, in calculating our non-GAAP measures. We incurred expenses in connection with these initiatives which we would not have otherwise incurred in periods presented as part of our continuing operations. We expect to incur related expenses for the next three months.

Stock-based Compensation Expense. We have excluded the effect of stock-based compensation expense in calculating our non-GAAP measures. We record non-cash compensation expenses related to grants of options and restricted shares for executives, employees and consultants, and grants of shares to our board of directors. Depending upon the size, timing and the terms of the grants, the non-cash compensation expense may vary significantly but will recur in future periods.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005947/en/

Investor Contact:

Greg Chodaczek

347-620-7010

[email protected]

KEYWORDS: New Jersey United States North America

INDUSTRY KEYWORDS: General Health Medical Devices Health Pharmaceutical Medical Supplies

MEDIA:

May 4, 2023 4:23 pm

U.S. Physical Therapy to Present at the 2023 Bank of America Healthcare Conference

U.S. Physical Therapy to Present at the 2023 Bank of America Healthcare Conference

HOUSTON–(BUSINESS WIRE)–
U.S. Physical Therapy, Inc. (NYSE: USPH), a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services (the “Company”), today announced that Carey Hendrickson, Chief Financial Officer, will participate in the 2023 Bank of America Healthcare Conference on Tuesday, May 9, 2023. The presentation will cover an overview of the Company.

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 647 outpatient physical therapy clinics in 40 states. The Company’s clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. In addition to owning and operating clinics, the Company manages 35 physical therapy facilities for unaffiliated third parties, including hospitals and physician groups. The Company also has an industrial injury prevention business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.

More information about U.S. Physical Therapy, Inc. is available at www.usph.com. The information included on that website is not incorporated into this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230504006009/en/

U.S. Physical Therapy, Inc.

Carey Hendrickson, Chief Financial Officer

Email: [email protected]

Chris Reading, Chief Executive Officer

(713) 297-7000

Three Part Advisors

Joe Noyons

(817) 778-8424

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: General Health Health Nursing Physical Therapy

MEDIA:

Logo

May 4, 2023 4:22 pm

EMCORE Reports Fiscal 2023 Second Quarter Results

ALHAMBRA, CA, May 04, 2023 (GLOBE NEWSWIRE) — EMCORE Corporation (Nasdaq: EMKR), the world’s largest independent provider of inertial navigation solutions to the aerospace and defense industry, today announced results for the fiscal 2023 second quarter (2Q23) ended March 31, 2023. Management will host a conference call to discuss 2Q23 financial and business results today at 5:00 p.m. Eastern Time (ET).

For 2Q23, EMCORE’s consolidated revenue was $26.8 million, comprised of $25.2 million from the Aerospace and Defense (A&D) segment, of which $24.3 million was inertial navigation, and $1.6 million from the Broadband segment. Net loss was $12.2 million and $8.3 million on a GAAP and non-GAAP basis, respectively. Adjusted EBITDA was negative $6.5 million. Please refer to the schedules at the end of this press release for GAAP to non-GAAP reconciliations and other information related to non-GAAP financial measures.

“EMCORE has entered the final phase of its restructuring as a pure play inertial navigation solutions provider to the A&D market. In 2Q23, our inertial navigation revenue grew 21% to $24.3 million compared to 1Q23 and included strong performances from our Tinley Park, Budd Lake, and Alhambra FOG operations,” said Jeff Rittichier, President and Chief Executive Officer of EMCORE. “Going forward, we anticipate revenue for the June quarter to be in the range of $25 million to $27 million, including approximately $1 million of non-inertial navigation revenue. In addition, we are working with our Broadband and Defense Optoelectronic customers on last time buys, which currently are expected to total approximately $10 million over the next few quarters.”

Consolidated Results

	Three Months Ended
	Mar 31, 2023	Dec 31, 2022	+increase/ -decrease
	2Q23	1Q23	+increase/ -decrease
Revenue	$26.8M	$25.0M	+$1.8M
Gross margin	14%	12%	+2%
Operating expenses	$15.8M	$14.6M	+$1.2M
Operating margin	(45%)	(46%)	+1%
Net loss	($12.2M)	($11.7M)	-$0.5M
Net loss per share diluted	($0.27)	($0.31)	+$0.04
Non-GAAP gross margin (a)	16%	15%	+1%
Non-GAAP operating expenses (a)	$12.4M	$11.8M	+$0.6M
Non-GAAP operating margin (a)	(30%)	(32%)	+2%
Non-GAAP net loss (a)	($8.3M)	($8.2M)	-$0.1M
Non-GAAP net loss per share diluted (a)	($0.18)	($0.22)	+$0.03
Adjusted EBITDA	($6.5M)	($6.5M)	$—M
Ending cash and cash equivalents	$24.8M	$24.2M	+$0.6M
Line of credit and loan payable	$12.0M	$12.3M	-$0.3M
(a) Please refer to the schedules at the end of this press release for GAAP to non-GAAP reconciliations and other information related to non-GAAP financial measures.

Aerospace and Defense Segme
nt

For 2Q23, A&D’s sequential-quarter revenue increase was driven by inertial navigation, which grew to $24.3 million, an increase of $4.3 million or 21%. This was slightly offset by a drop in sales of defense optoelectronics. A&D’s gross margin increase was driven primarily by the higher revenue. R&D expense increased sequentially due to increased project material spend.

	Three Months Ended
	Mar 31, 2023	Dec 31, 2022	+increase/ -decrease
	2Q23	1Q23	+increase/ -decrease
A&D segment revenue	$25.2M	$21.7M	+$3.5M
A&D segment gross margin	22%	19%	+3%
A&D segment R&D expense	$5.3M	$4.3M	+$1.0M
A&D segment gross profit less R&D expense	$0.3M	($0.2M)	+$0.5M
Non-GAAP A&D segment gross margin (a)	24%	22%	+2%
Non-GAAP A&D segment R&D expense (a)	$5.1M	$4.2M	+$0.9M
Non-GAAP A&D segment gross profit less R&D expense (a)	$0.9M	$0.6M	+$0.3M
(a) Please refer to the schedules at the end of this press release for GAAP to non-GAAP reconciliations and other information related to non-GAAP financial measures.

Broadband Segmen
t

For 2Q23, Broadband’s sequential-quarter revenue decrease was primarily due to lower sales of CATV, wireless, and sensing products, partly offset by higher Chips revenue. Broadband’s gross margin decline was due primarily to the lower revenue. R&D expense decreased sequentially due to lower net expense on Chips development.

	Three Months Ended
	Mar 31, 2023	Dec 31, 2022	+increase/ -decrease
	2Q23	1Q23	+increase/ -decrease
Broadband segment revenue	$1.6M	$3.3M	-$1.7M
Broadband segment gross margin	(112%)	(32%)	-80%
Broadband segment R&D expense	$0.5M	$1.0M	-$0.5M
Broadband segment gross profit less R&D expense	($2.3M)	($2.1M)	-$0.2M
Non-GAAP Broadband segment gross margin (a)	(104%)	(27%)	-77%
Non-GAAP Broadband segment R&D expense (a)	$0.5M	$0.9M	-$0.4M
Non-GAAP Broadband segment gross profit less R&D expense (a)	($2.1M)	($1.8M)	-$0.3M
(a) Please refer to the schedules at the end of this press release for GAAP to non-GAAP reconciliations and other information related to non-GAAP financial measures.

Business Outlook

The Company expects revenue for the fiscal third quarter (3Q23) ending June 30, 2023 to be in the range of $25 million to $27 million, including approximately $1 million of non-inertial navigation revenue.

Conference Call

The Company will discuss its financial results on Thursday, May 4, 2023 at 5:00 p.m. ET (2:00 p.m. PT). To participate in the conference call, click on the following link (ten minutes prior to the call) to register: https://register.vevent.com/register/BI69d5a1a2ca3b400c91ffdf33c57d4202. Once registered, participants will have the option of: 1) dialing in from their phone (using their PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone. The call will be webcast live via the Company’s website at https://investor.emcore.com. A webcast will be available for replay following the conclusion of the call.

About EMCORE

EMCORE Corporation is a leading provider of inertial navigation products for the aerospace and defense markets. We leverage industry-leading Photonic Integrated Chip (PIC), Quartz MEMS, and Lithium Niobate chip-level technology to deliver state-of-the-art component and system-level products across our end-market applications. EMCORE has vertically-integrated manufacturing capability at its facilities in Alhambra, CA, Budd Lake, NJ, Concord, CA, and Tinley Park, IL. Our manufacturing facilities maintain ISO 9001 quality management certification, and we are AS9100 aerospace quality certified at our facilities in Budd Lake and Concord. For further information about EMCORE, please visit http://www.emcore.com.

Use of Non-GAAP Financial Measures

The Company conforms to U.S. Generally Accepted Accounting Principles (“GAAP”) in the preparation of its financial statements. We disclose supplemental non-GAAP earnings measures for gross margin, operating expenses, research and development expenses, operating margin, and net loss, as well as adjusted EBITDA. The Company has, regardless of result, applied consistent rationale and methods when presenting supplemental non-GAAP measures.

Management believes these supplemental non-GAAP measures reflect the Company’s core ongoing operating performance and facilitates comparisons across reporting periods. The Company uses these measures when evaluating its financial results and for planning and forecasting of future periods. We believe that these supplemental non-GAAP measures are also useful to investors in assessing our operating performance. While we believe in the usefulness of these supplemental non-GAAP measures, there are limitations. Our non-GAAP measures may not be reported by other companies in our industry and/or may not be directly comparable to similarly titled measures of other companies due to potential differences in calculation. We compensate for these limitations by using these non-GAAP measures as a supplement to GAAP and by providing the reconciliations to the most comparable GAAP measure.

The schedules at the end of this press release reconcile the Company’s non-GAAP measures to the most directly comparable GAAP measure. The adjustments share one or more of the following characteristics: they are unusual and the Company does not expect them to recur in the ordinary course of its business, they do not involve the expenditure of cash, they are unrelated to the ongoing operation of the business in the ordinary course, or their magnitude and timing is largely outside of the Company’s control. An example of one item that regularly meets one or more of these characteristics is stock-based compensation. There are also, from time-to-time, other examples such as litigation-related expenses (only after a legal matter has turned into active litigation) or acquisition-related costs. For all reporting periods disclosed, the Company has applied consistent rationale, method, and adjustments in reconciling non-GAAP measures to the most directly comparable GAAP measure.

Non-GAAP measures are not in accordance with or an alternative to GAAP, nor are they meant to be considered in isolation or as a substitute for comparable GAAP measures. Our disclosures of these measures should be read only in conjunction with our financial statements prepared in accordance with GAAP. Non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results.

Forward-Looking Statements

The information provided herein may include 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 (“Exchange Act”). These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results, including expected revenue for 3Q23, and statements about our future results of operations and financial position, plans, strategies, business prospects, changes, and trends in our business and the markets in which we operate.

These forward-looking statements may be identified by the use of terms and phrases such as “anticipates”, “believes”, “can”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “plans”, “projects”, “targets”, “will”, and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters such as the development of new products, future growth, enhancements or technologies, sales levels, expense levels, and other statements regarding matters that are not historical are forward-looking statements. We caution that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance, or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a) any disruptions to our operations as a result of our restructuring activities; (b) risks related to costs and expenses incurred in connection with restructuring activities and anticipated operational costs savings arising from the restructuring actions; (c) risks related to the loss of personnel; (d) risks related to customer and vendor relationships and contractual obligations with respect to the shutdown of the Broadband business segment and the discontinuance of its defense optoelectronics product line; (e) risks and uncertainties related to our current expectations with respect to potential revenues arising from last time buys by our Broadband and Defense Optoelectronics customers; (f) risks related to the closing of the manufacturing support and engineering center in China; (g) the rapidly evolving markets for the Company’s products and uncertainty regarding the development of these markets; (h) the Company’s historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; (i) delays and other difficulties in commercializing new products; (j) the failure of new products: (i) to perform as expected without material defects, (ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be qualified and accepted by our customers, and (iv) to successfully compete with products offered by our competitors; (k) uncertainties concerning the availability and cost of commodity materials and specialized product components that we do not make internally; (l) actions by competitors; (m) risks and uncertainties related to applicable laws and regulations; (n) acquisition-related risks, including that (i) the revenues and net operating results obtained from our recent acquisitions may not meet our expectations, (ii) the costs and cash expenditures for integration of our recent acquisitions may be higher than expected, (iii) we may not recognize the anticipated synergies from our recent acquisitions, (iv) there could be losses and liabilities arising from these acquisitions that we will not be able to recover from any source, and (v) we may not realize sufficient scale from these acquisitions and will need to take additional steps, including making additional acquisitions, to achieve our growth objectives; (o) risks related to our ability to obtain capital; (p) the effect of component shortages and any alternatives thereto; (q) risks and uncertainties related to manufacturing and production capacity; (r) risks related to the conversion of order backlog into product revenue; and (r) other risks and uncertainties discussed under Item 1A – Risk Factors in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, as updated by our subsequent periodic reports.

Forward-looking statements are based on certain assumptions and analysis made in light of our experience and perception of historical trends, current conditions, and expected future developments as well as other factors that we believe are appropriate under the circumstances. While these statements represent our judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our filings with the Securities and Exchange Commission (“SEC”) that are available on the SEC’s web site located at www.sec.gov, including the sections entitled “Risk Factors” in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Certain information included in this press release may supersede or supplement forward-looking statements in our other Exchange Act reports filed with the SEC. We do not intend to update any forward-looking statement to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.

EMCORE CORPORATION

Condensed Consolidated Balance Sheet
s

(unaudited)

	March 31,			September 30,
(in thousands)	2023			2022
ASSETS
Current assets:
Cash and cash equivalents	$	24,348		$	25,625
Restricted cash		495			520
Accounts receivable, net of credit loss of $396 and $337, respectively		22,579			18,073
Contract assets		7,414			4,560
Inventory		40,086			37,035
Prepaid expenses		3,734			4,061
Other current assets		2,074			3,063
Total current assets		100,730			92,937
Property, plant, and equipment, net		26,325			37,867
Goodwill		16,422			17,894
Operating lease right-of-use assets		27,239			23,243
Other intangible assets, net		14,947			14,790
Other non-current assets		2,408			2,351
Total assets	$	188,071		$	189,082
LIABILITIES and SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	14,141		$	12,729
Accrued expenses and other current liabilities		11,877			8,124
Contract liabilities		4,247			5,300
Loan payable – current		852			852
Operating lease liabilities – current		2,647			2,213
Total current liabilities		33,764			29,218
Line of credit		6,553			9,599
Loan payable – non-current		4,616			5,042
Operating lease liabilities – non-current		25,434			21,625
Asset retirement obligations		4,091			4,664
Other long-term liabilities		8			106
Total liabilities		74,466			70,254
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value, 100,000 shares authorized; 60,790 shares issued and 53,884 shares outstanding as of March 31, 2023; 44,497 shares issued and 37,591 shares outstanding as of September 30, 2022		806,100			787,347
Treasury stock at cost; 6,906 shares as of March 31, 2023 and September 30, 2022		(47,721	)		(47,721	)
Accumulated other comprehensive income		1,246			1,301
Accumulated deficit		(646,020	)		(622,099	)
Total shareholders’ equity		113,605			118,828
Total liabilities and shareholders’ equity	$	188,071		$	189,082

EMCORE CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

	Three Months Ended March 31,						Six Months Ended March 31,
(in thousands, except for per share data)		2023			2022			2023			2022
Revenue	$	26,820		$	32,650		$	51,773		$	74,886
Cost of revenue		23,109			23,633			45,003			50,072
Gross profit		3,711			9,017			6,770			24,814
Operating expense:
Selling, general, and administrative		9,951			7,563			19,895			14,750
Research and development		5,797			4,535			11,148			9,162
Severance		(17	)		20			458			1,318
Loss (gain) on sale of assets		24			(788	)		(1,147	)		(601	)
Total operating expense		15,755			11,330			30,354			24,629
Operating (loss) income		(12,044	)		(2,313	)		(23,584	)		185
Other (expense) income:
Interest expense, net		(222	)		(12	)		(463	)		(23	)
Foreign exchange gain (loss)		46			(17	)		121			25
Other income		46			—			153			—
Total other (expense) income		(130	)		(29	)		(189	)		2
(Loss) income before income tax (expense) benefit		(12,174	)		(2,342	)		(23,773	)		187
Income tax (expense) benefit		(54	)		117			(148	)		2
Net (loss) income	$	(12,228	)	$	(2,225	)	$	(23,921	)	$	189
Foreign exchange translation adjustment		8			2			55			22
Comprehensive (loss) income	$	(12,220	)	$	(2,223	)	$	(23,866	)	$	211
Per share data:
Net (loss) income per basic share	$	(0.27	)	$	(0.06	)	$	(0.58	)	$	0.01
Weighted-average number of basic shares outstanding		45,240			37,217			41,356			37,082
Net (loss) income per diluted share	$	(0.27	)	$	(0.06	)	$	(0.58	)	$	0.01
Weighted-average number of diluted shares outstanding		45,240			37,217			41,356			38,384

EMCORE CORPORATION

Reconciliations of GAAP to Non-GAAP Financial Measur
es

(unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022
(in thousands, except for percentages)	2Q23			1Q23
Gross profit	$	3,711		$	3,059
Gross margin		14	%		12	%
Stock-based compensation expense		331			387
Asset retirement obligation accretion		(18	)		51
Amortization of intangible assets		287			326
Non-GAAP gross profit	$	4,311		$	3,823
Non-GAAP gross margin		16	%		15	%

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022
(in thousands)	2Q23			1Q23
Operating expense	$	15,755		$	14,599
Stock-based compensation expense		(1,204	)		(1,347	)
Severance expense		17			(475	)
(Loss) gain on sale of assets		(24	)		1,171
Transition-related expense		(1,264	)		(2,060	)
Litigation-related expense		(884	)		(105	)
Non-GAAP operating expense	$	12,396		$	11,783

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022
(in thousands, except for percentages)	2Q23			1Q23
Operating profit	$	(12,044	)	$	(11,540	)
Operating margin		(45	%)		(46	%)
Stock-based compensation expense		1,535			1,734
Asset retirement obligation accretion		(18	)		51
Amortization of acquired intangibles		287			326
Severance expense		(17	)		475
Loss (gain) on sale of assets		24			(1,171	)
Transition-related expense		1,264			2,060
Litigation-related expense		884			105
Non-GAAP operating profit	$	(8,085	)	$	(7,960	)
Non-GAAP operating margin		(30	%)		(32	%)
Depreciation expense		1,566			1,450
Adjusted EBITDA	$	(6,519	)	$	(6,510	)
Adjusted EBITDA %		(24	%)		(26	%)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022
(in thousands, except for per share data and percentages)	2Q23			1Q23
Net loss	$	(12,228	)	$	(11,693	)
Net loss per share basic and diluted	$	(0.27	)	$	(0.31	)
Stock-based compensation expense		1,535			1,734
Asset retirement obligation accretion		(18	)		51
Amortization of intangible assets		287			326
Severance expense		(17	)		475
Loss (gain) on sale of assets		24			(1,171	)
Transition-related expense		1,264			2,060
Litigation-related expense		884			105
Other income		(46	)		(107	)
Foreign exchange (gain) loss		(46	)		(75	)
Income tax expense (benefit)		54			94
Non-GAAP net loss	$	(8,307	)	$	(8,201	)
Non-GAAP net loss per share basic and diluted	$	(0.18	)	$	(0.22	)
Interest expense, net		222			241
Depreciation expense		1,566			1,450
Adjusted EBITDA	$	(6,519	)	$	(6,510	)
Adjusted EBITDA %		(24	%)		(26	%)

	Three Months Ended							Three Months Ended
(in thousands, except for percentages)	Mar 31, 2023			Dec 31, 2022				Mar 31, 2023			Dec 31, 2022
(in thousands, except for percentages)	2Q23			1Q23				2Q23			1Q23
Aerospace and Defense							Broadband
Gross profit	$	5,515		$	4,108		Gross profit	$	(1,804	)	$	(1,049	)
Gross margin		22	%		19	%	Gross margin		(112	%)		(32	%)
Stock-based compensation expense		249			273		Stock-based compensation expense		82			114
Asset retirement obligation accretion		(30	)		39		Asset retirement obligation accretion		12			12
Amortization of intangible assets		254			293		Amortization of intangible assets		33			33
Non-GAAP gross profit	$	5,988		$	4,713		Non-GAAP gross profit	$	(1,677	)	$	(890	)
Non-GAAP gross margin		24	%		22	%	Non-GAAP gross margin		(104	%)	(27) %

R&D expense	$	5,253		$	4,349		R&D expense	$	544		$	1,002
Stock-based compensation expense		(176	)		(193	)	Stock-based compensation expense		(77	)		(79	)
Non-GAAP R&D expense	$	5,077		$	4,156		Non-GAAP R&D expense	$	467		$	923
Non-GAAP profit	$	911		$	557		Non-GAAP profit	$	(2,144	)	$	(1,813	)

Contact:

EMCORE Corporation
Tom Minichiello
(626) 293-3400
[email protected]

May 4, 2023 4:22 pm

PCTEL Reports First Quarter Financial Results

PCTEL Reports First Quarter Financial Results

PCTEL achieved first quarter revenues of $23.0 million and gross profit margin of 50%

Advancement on key growth strategies

BLOOMINGDALE, Ill.–(BUSINESS WIRE)–
PCTEL, Inc. (Nasdaq: PCTI) (“PCTEL” or the “Company”), a leading global provider of wireless technology solutions, today reported results for the first quarter ended March 31, 2023.

First Quarter 2023 Highlights

Revenues of $23.0 million
GAAP gross profit margin of 50.2%
GAAP net income of $1.3 million or $0.07 per diluted share
Non-GAAP net income of $2.1 million or $0.12 per diluted share
Adjusted EBITDA increased 153% year-over-year to $2.8 million
Announced new VerStack antenna platform for smarter rail communication and Industrial IoT applications
Announced the industry’s first automated uplink drive or walk testing system for public safety radio networks

David Neumann, Chief Executive Officer, commented, “I am pleased with the Company’s strong start in 2023. Our team has remained focused on our three core growth strategies, including geographic expansion, product innovation, and market penetration in high growth industries. During the quarter, we furthered our relationship with a European Electric Vehicle manufacturer, which selected Smarteq antennas for two new vehicle models. Additionally, we experienced strong 5G scanning receiver sales to global service and rental customers. On the innovation side, we made exciting progress, having announced the release of our new VerStack antenna platform and our new, industry first automated uplink drive or walk testing system for public safety radio networks. I look forward to further expansion of our customer relationships and product portfolio as we progress through 2023.”

First Quarter 2023 Financial Summary

Summary Financials	Q1’23	Q1’22	Change
Revenue (000’s)	$22,973	$22,542	2%
Gross Profit Margin %	50.2%	41.4%	880bps
Adjusted EBITDA (000’s)	$2,788	$1,100	153%
GAAP Diluted EPS	$0.07	($0.09)	$0.16
Non-GAAP Diluted EPS	$0.12	$0.02	$0.10

First quarter 2023 revenues were $23.0 million, an increase of 2% from the year ago period. First quarter 2023 antennas and industrial IoT device revenue was $15.6 million, a decrease of 8.7% year-over-year, partially due to customers’ supply chain challenges which delayed previously planned projects. First quarter 2023 Test & Measurement revenue was $7.4 million, an increase of 33.0% year-over-year due to U.S. sales of 5G scanning receivers and sales to our global 5G rental market customers.

First quarter 2023 GAAP gross profit margin was 50.2%, compared to 41.4% in the first quarter of 2022. The higher gross profit margin was primarily due to higher Test and Measurement sales and stronger gross margins within Antennas and IoT devices.

Adjusted EBITDA in the first quarter increased to $2.8 million compared to $1.1 million in the first quarter of 2022. First quarter 2023 GAAP net income was $1.3 million or diluted earnings per share of $0.07 compared to GAAP net income of ($1.6) million or ($0.09) per share in the first quarter of 2022. Non-GAAP net income was $2.1 million, or $0.12 diluted earnings per share, compared to $0.3 million or $0.02 per share in the first quarter of 2022.

Cash, cash equivalents and investments were $30.3 million as of March 31, 2023, an increase of approximately $0.3 million as compared to December 31, 2022.

Second Quarter 2023 Outlook

The following ranges represent PCTEL’s current expectations for the second quarter 2023 based upon available data and estimates.

Revenue: $20.0 million to $21.0 million
Non-GAAP Gross Margin: 47% to 48%
Non-GAAP EPS: $0.02 to $0.04

Kevin McGowan, Chief Financial Officer, explained, “The first quarter exemplified the strength of our underlying business and the demand for our suite of products, but we anticipate lower sequential revenues and earnings in the second quarter of 2023 due to customer and project delays, the impact of economic slowdown in certain areas, and the completion of Test & Measurement projects for OEM customers. Our balance sheet remains strong and provides us with necessary flexibility to execute our growth strategy and deliver strong shareholder returns.”

CONFERENCE CALL / WEBCAST

PCTEL’s management team will discuss the Company’s results today at 4:30 p.m. ET.The call will also be webcast at https://investor.pctel.com/news-events/webcasts-events. The call can also be accessed by dialing (888) 506-0062 (United States/Canada) or (973) 528-0011 (International), access code: 426385.

Replay: A replay will be available for two weeks after the call on either the website listed above or by calling (877) 481-4010 (United States/Canada), or (919) 882-2331 (International), access code: 48180.

About PCTEL

PCTEL is a leading global provider of wireless technology solutions, including purpose-built Industrial IoT devices, antenna systems, and test and measurement products. Trusted by our customers for over 29 years, we solve complex wireless challenges to help organizations stay connected, transform, and grow.

For more information, please visit our website at https://www.pctel.com/

PCTEL Safe Harbor Statement

This press release and our related comments in our earnings conference call contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Specifically, the statements about the Company’s expectations regarding our future financial performance; growth of our antenna and Industrial IoT product line and our test & measurement product line through execution of our three growth strategies; the ability of the Company to continue to innovate new products for its product lines; the impact of development and adoption of wireless solutions in the public safety, rail, logistics, agriculture, utilities, and electric vehicle markets on our revenue generation; our ability to expand our product lines in the European market and through distribution channels; the anticipated demand for certain products, including those related to public safety, industrial IoT, 5G (e.g., the Gflex); and the anticipated growth of public and private wireless systems are forward-looking statements. These statements are based on management’s current expectations and actual results may differ materially from those projected as a result of certain risks and uncertainties, including higher than expected inflation; an economic recession in the Americas or globally; the disruptions to the Company’s workforce, operations, supply chain and customer demand caused by the pandemic and the impact of the pandemic and ensuing supply chain disruption on the Company’s results of operations, financial condition and stock price; the impact of data densification and IoT on capacity and coverage demand; the impact of 5G; customer demand and growth generally in the Company’s defined market segments; the Company’s ability to access the government market and create demand for its products; the Company’s ability to expand its European presence and benefit from additional antenna and Industrial IoT product offerings from Smarteq; and the Company’s ability to grow its business and create, protect and implement new technologies and solutions. These and other risks and uncertainties are detailed in PCTEL’s Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and PCTEL disclaims any obligation to update or revise the information contained in any forward-looking statement, whether as a result of new information, future events or otherwise.

PCTEL and Gflex® are registered trademarks of PCTEL, Inc. © 2023 PCTEL, Inc. All rights reserved.

PCTEL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except share data)

March 31,

December 31,

2023

2022

ASSETS

Cash and cash equivalents
$

8,717

$

7,736

Short-term investment securities

21,570

22,254

Accounts receivable, net of allowances of $135 and $132 at March 31, 2023 and December 31, 2022, respectively

15,531

18,853

Inventories, net

17,626

18,918

Prepaid expenses and other assets

1,594

1,861

Total current assets

65,038

69,622

Property and equipment, net

9,819

10,004

Goodwill

5,946

5,935

Intangible assets, net

968

1,045

Other noncurrent assets

3,085

3,269

TOTAL ASSETS
$

84,856

$

89,875

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable
$

3,520

$

4,648

Accrued liabilities

9,002

12,605

Total current liabilities

12,522

17,253

Long-term liabilities

3,431

3,624

Total liabilities

15,953

20,877

Stockholders’ equity:

Common stock, $0.001 par value, 50,000,000 shares authorized at March 31, 2023 and December 31, 2022, respectively, and 18,982,847 and 18,748,529 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

19

19

Additional paid-in capital

127,938

128,370

Accumulated deficit

(57,647

)

(57,941

)

Accumulated other comprehensive loss

(1,407

)

(1,450

)

Total stockholders’ equity

68,903

68,998

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$

84,856

$

89,875

PCTEL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

Three Months Ended

March 31,

2023

2022

REVENUES
$

22,973

$

22,542

COST OF REVENUES

11,441

13,209

GROSS PROFIT

11,532

9,333

OPERATING EXPENSES:

Research and development

2,984

3,250

Sales and marketing

3,562

3,402

General and administrative

3,605

3,242

Amortization of intangible assets

63

71

Restructuring expenses

0

935

Total operating expenses

10,214

10,900

OPERATING INCOME (LOSS)

1,318

(1,567

)

Other income, net

220

11

INCOME (LOSS) BEFORE INCOME TAXES

1,538

(1,556

)

Expense for income taxes

214

8

NET INCOME (LOSS)
$

1,324

$

(1,564

)

Net Loss per Share:

Basic
$

0.07

$

(0.09

)

Diluted
$

0.07

$

(0.09

)

Weighted Average Shares:

Basic

18,367

17,972

Diluted

18,428

17,972

PCTEL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

Three Months Ended March 31,

2023

2022

Operating Activities:

Net income (loss)
$

1,324

$

(1,564

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

548

781

Intangible asset amortization

81

91

Stock-based compensation

278

774

Loss on disposal of property and equipment

26

0

Restructuring costs

0

(368

)

Bad debt provision

14

(3

)

Changes in operating assets and liabilities:

Accounts receivable

3,315

1,530

Inventories

1,297

772

Prepaid expenses and other assets

361

(145

)

Deferred tax assets

80

–

Accounts payable

(1,117

)

(1,299

)

Income taxes payable

134

41

Other accrued liabilities

(3,940

)

(2,027

)

Deferred revenue

18

87

Net cash provided by (used in) operating activities

2,419

(1,330

)

Investing Activities:

Capital expenditures

(389

)

(320

)

Purchase of short-term investments

(6,660

)

(8,194

)

Redemptions/maturities of short-term investments

7,344

8,187

Net cash provided by (used in) investing activities

295

(327

)

Financing Activities:

Payment of withholding tax on stock-based compensation

(710

)

(392

)

Principal payments on finance leases

(14

)

(19

)

Cash dividends

(1,030

)

(1,001

)

Net cash used in financing activities

(1,754

)

(1,412

)

Net increase (decrease) in cash and cash equivalents

960

(3,069

)

Effect of exchange rate changes on cash

21

(16

)

Cash and cash equivalents, beginning of period

7,736

8,192

Cash and Cash Equivalents, End of Period
$

8,717

$

5,107

PCTEL, INC.

REVENUE AND GROSS PROFIT BY PRODUCT LINE (unaudited)

Reconciliation of GAAP Gross Profit percentage to Non-GAAP Gross Profit percentage

(in thousands)

Three Months Ended March 31, 2023

Antennas and

Industrial IoT

Devices

Test &

Measurement

Products

Corporate

Total

REVENUES
$15,614

$7,427

($68

)

$22,973

GROSS PROFIT
$6,120

$5,383

$29

$11,532

GAAP GROSS PROFIT %
39.2

%

72.5

%

50.2

%

Non-GAAP adjustments:

Amortization of intangible assets
0.1

%

0.0

%

0.1

%

Stock compensation expenses
0.1

%

20.0

%

0.3

%

Non-GAAP GROSS PROFIT %
39.4

%

72.7

%

50.4

%

Three Months Ended March 31, 2022

Antennas and

Industrial IoT

Devices

Test &

Measurement

Products

Corporate

Total

REVENUES
$17,102

$5,583

($143

)

$22,542

GROSS PROFIT
$5,247

$4,162

($76

)

$9,333

GROSS PROFIT %
30.7

%

74.5

%

41.4

%

Non-GAAP adjustments:

Amortization of intangible assets
0.1

%

0.0

%

0.1

%

Stock compensation expenses
0.2

%

0.6

%

0.3

%

Non-GAAP GROSS PROFIT %
31.0

%

75.2

%

41.8

%

The Corporate column includes the elimination of intercompany revenues between Antennas and Industrial IoT Devices and Test & Measurement Products and other licensing revenues.

This schedule reconciles the Company’s GAAP gross profit percentage to its Non-GAAP gross profit percentage. The Company believes that this schedule provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods.

The adjustments on this schedule consist of amortization of intangible assets and stock compensation expenses.

Reconciliation of GAAP to Non-GAAP results (unaudited)

(in thousands except per share information)

Reconciliation of GAAP operating income (loss) to Non-GAAP operating income

Three Months Ended March 31,

2023

2022

Operating Income (Loss)
$1,318

($1,567

)

(a) Add:

Amortization of intangible assets:

-Cost of revenues
18

20

-Operating expenses
63

71

Restructuring expenses
0

935

Stock compensation expenses:

-Cost of revenues
29

65

-Research and development
58

136

-Sales & marketing
43

197

-General & administrative
148

376

Transaction expenses related to strategic alternatives
563

86

922

1,886

Non-GAAP Operating Income
$2,240

$319

% of revenue
9.8

%

1.4

%

Reconciliation of GAAP net income (loss) to Non-GAAP net income

Three Months Ended March 31,

2023

2022

Net Income (Loss)
$1,324

($1,564

)

Adjustments:

(a) Non-GAAP adjustments to operating income (loss)
922

1,886

(b) Income Taxes
(106

)

(18

)

816

1,868

Non-GAAP Net Income
$2,140

$304

Non-GAAP Income per Share:

Basic
$0.12

$0.02

Diluted
$0.12

$0.02

Weighed Average Shares:

Basic
18,367

17,972

Diluted
18,428

17,972

This schedule reconciles the Company’s GAAP operating income (loss) to its Non-GAAP operating income. The Company believes that presentation of this schedule provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these Non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These Non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results.

The adjustments to GAAP operating income (loss) (a) consist of stock compensation expense, amortization of intangible assets, restructuring expenses, and acquisition related expenses. The adjustments to GAAP net income (loss) includes the non-GAAP adjustments to operating income (loss) as well as adjustments for (b) non-cash income tax expense.

PCTEL, Inc.

Reconciliation of GAAP operating income (loss) to adjusted EBITDA (unaudited)

(in thousands)

Three Months Ended March 31,

2023

2022

Operating income (loss)
$1,318

($1,567

)

Add:

Depreciation and amortization
548

781

Intangible amortization
81

91

Restructuring expenses
0

935

Stock compensation expenses
278

774

Transaction expenses related to strategic alternatives
563

86

Adjusted EBITDA
$2,788

$1,100

% of revenue
12.1

%

4.9

%

This schedule reconciles the Company’s GAAP operating income (loss) to Adjusted EBITDA. The Company believes that this schedule provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses Adjusted EBITDA when evaluating its financial results as well as for internal planning and forecasting purposes. Adjusted EBITDA should not be viewed as a substitute for the Company’s GAAP results.

Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization and extraordinary expenses. The adjustments on this schedule consist of depreciation, amortization of intangible assets, stock compensation expenses, restructuring expenses, and acquisition related expenses.

PCTEL, INC.

Reconciliation of GAAP operating expenses to Non-GAAP operating expenses (unaudited)

(in thousands)

Three Months Ended March 31,

2023

2022

GAAP operating expenses
$10,214

$10,900

Stock compensation expenses
(249

)

(709

)

Amortization of intangible assets
(63

)

(71

)

Restructuring expenses
0

(935

)

Transaction expenses related to strategic alternatives
(563

)

(86

)

Non-GAAP Operating expenses
$9,339

$9,099

This schedule reconciles the Company’s GAAP operating expenses to its Non-GAAP operating expenses. The Company believes that this schedule provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods.

The adjustments on this schedule consist of amortization of intangible assets, stock compensation expenses, restructuring expenses, and acquisition related expenses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005863/en/

PCTEL Company Contacts

Kevin McGowan

CFO

PCTEL, Inc.

(630) 339-2051

PCTEL Investor Relations Contact

Lisa Fortuna or Ashley Gruenberg

Alpha IR Group

312-445-2870

[email protected]

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: IOT (Internet of Things) Hardware Audio/Video Mobile/Wireless Technology

MEDIA:

Logo

Posted on May 4, 2023 4:21 pm
Upland Software Reports First Quarter 2023 Financial Results

Upland Software Reports First Quarter 2023 Financial Results

Company Beats Q1 Guidance and Reaffirms Full Year 2023 Guidance

AUSTIN, Texas–(BUSINESS WIRE)–
Upland Software, Inc. (Nasdaq: UPLD), a leader in cloud-based tools for digital transformation, today announced financial and operating results for the first quarter 2023 and issued guidance for its second quarter and full year of 2023.

First Quarter 2023 Financial Highlights

Total revenue was $77.1 million, a decrease of 2% from $78.7 million in the first quarter of 2022. Total revenue growth includes a negative impact of 2% from changes in foreign currency exchange rates (“FX”). Without FX, total revenue growth would have been flat.

Subscription and support revenue was $72.9 million, a decrease of 1% from $73.6 million in the first quarter of 2022. Subscription and support revenue growth includes a negative impact of 2% from FX. Without FX, subscription and support revenue growth would have been 1%.

GAAP net loss was $140.0 million compared to a GAAP net loss of $22.8 million in the first quarter of 2022. GAAP net loss attributable to common stockholders was $141.4 million compared to GAAP net loss attributable to common stockholders of $22.8 million in the first quarter of 2022. GAAP net loss per share attributable to common stockholders was $4.38 per share, compared to a GAAP net loss per share attributable to common stockholders of $0.73 per share in the first quarter of 2022. This quarter-over-quarter increase in quarterly GAAP net loss is primarily attributable to a $128.8 million non-cash Goodwill impairment charge.

Adjusted EBITDA was $17.6 million, or 23% of total revenue, compared to $23.4 million, or 30% of total revenue, in the first quarter of 2022.

GAAP operating cash flow was $15.8 million, compared to GAAP operating cash flow of $8.2 million in the first quarter of 2022. Free cash flow was $15.6 million, compared to free cash flow of $8.0 million in the first quarter of 2022.

Cash on hand as of the end of the first quarter of 2023 was $257.7 million.

“In Q1, we beat our revenue and Adjusted EBITDA guidance midpoints, even after FX headwinds and free cash flow came in stronger than expected,” said Jack McDonald, Upland’s chairman and chief executive officer. “We also added 20 new major customers and announced a host of new product innovations,” he added. “It’s still early, but we are making progress on our new growth plan and remain focused on building shareholder value over time.”

First Quarter Business Highlights

We expanded relationships with 333 existing customers, 38 of which were major expansions. We also welcomed 207 new customers to Upland in the first quarter, including 20 new major customers.

We hosted a webinar featuring Forrester to discuss the future of knowledge management and the beta release of Upland’s AI Knowledge Assistant, currently available to RightAnswers customers. With Upland’s new AI Knowledge Assistant, which utilizes OpenAI’s ChatGPT API, knowledge workers can streamline the creation of knowledge by simply requesting content related to their topic at hand and receiving a real-time response with full article content, summarization, and identification of key words.

FileBound was one once again recognized as a gold medalist and leader in the Enterprise Content Management Data Quadrant Report from SoftwareReviews for document management and workflow automation capabilities.

AccuRoute’s latest release extends MFP integrations with Lexmark, increases DMS visibility, and expands fax API support to ensure the security of Personally Identifiable Information in highly-regulated industries, such as healthcare.

BA Insight was recognized by KMWorld’s 2023 list of 100 companies that matter in knowledge management.

Business Outlook

The guidance below reflects the significant incremental sales, marketing and product investments that Upland is making as part of its comprehensive growth plan.

For the quarter ending June 30, 2023, Upland expects reported total revenue to be between $69.8 and $75.8 million, including subscription and support revenue between $65.7 and $70.7 million, for a decline in total revenue of 9% at the mid-point over the quarter-ended June 30, 2022. Second quarter 2023 Adjusted EBITDA is expected to be between $15.0 and $18.0 million, for an Adjusted EBITDA margin of 23% at the mid-point. This Adjusted EBITDA guide at the mid-point is a decrease of 33% from the quarter-ended June 30, 2022.

For the full year ending December 31, 2023, Upland expects reported total revenue to be between $288.0 and $312.0 million, including subscription and support revenue between $269.0 and $289.0 million, for a decline in total revenue of 5% at the mid-point over the year ended December 31, 2022. Full year 2023 Adjusted EBITDA is expected to be between $63.0 and $75.0 million, for an Adjusted EBITDA margin of 23% at the mid-point. This Adjusted EBITDA guide at the midpoint is a decrease of 29% over the year ended December 31, 2022.

Conference Call Details

Upland’s executive team will host a live conference call and webcast at 4:00 p.m. Central Time, 5:00 p.m. Eastern Time today to review Upland’s financial results and outlook for the business. The call can be accessed via a webcast on investor.uplandsoftware.com, or by dialing 1-888-800-8770 in North America or +1-646-307-1953 if outside North America, international rates apply. Attendees will need to use access code 6485253 to join the call. This webcast will contain forward-looking statements and other material information regarding Upland’s financial and operating results.

Following the completion of the conference call, a recording of the webcast will be made available at investor.uplandsoftware.com for twelve months.

About Upland Software

Upland helps global businesses accelerate digital transformation with a powerful cloud software library that provides choice, flexibility, and value. Our growing library of products delivers the “last mile” plug-in processes, reporting, and job specific workflows that major cloud platforms and homegrown systems don’t provide. We focus on specific business challenges and support every corner of the organization, operating at scale and delivering quick time to value for our ~1,800 enterprise customers. To learn more, visit www.uplandsoftware.com.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA, non-GAAP net income (loss), non-GAAP net income (loss) per share and free cash flow.

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 recurring core business operating results, such as our revenues excluding the impact for foreign currency fluctuations or our operating performance excluding not only non-cash charges, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and they are used by our institutional investors and the analyst community to help them analyze the health of our business. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the tables provided below in this release.

We are unable to reconcile any forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort. Additionally, we are unable to quantify the impact of foreign currency exchange fluctuations on components of our income statement beyond revenues because the information which is needed to do so is unavailable at this time without unreasonable effort.

Upland defines Adjusted EBITDA as net income (loss), calculated in accordance with GAAP, plus net income (loss) from discontinued operations, depreciation and amortization expense, interest expense, net, other expense (income), net, provision for income taxes, stock-based compensation expense, acquisition-related expenses, non-recurring litigation costs, purchase accounting adjustments for deferred revenue and impairment of goodwill.

Upland defines non-GAAP net income (loss) as net income (loss), calculated in accordance with GAAP, plus, amortization of purchased intangible assets, amortization of debt discount, loss on debt extinguishment, stock-based compensation expenses, acquisition-related expenses, non-recurring litigation expenses, purchase accounting adjustments for deferred revenue, non-recurring provision for income tax, impairment of goodwill and the related tax effect of the adjustments above.

Upland defines free cash flow as GAAP operating cash flow less purchases of property and equipment.

Upland defines major accounts as accounts with greater than or equal to $25,000 in annual recurring revenue.

Upland defines major expansions as existing customers who expanded the amount of annual recurring revenue under their contract by at least $25,000.

Upland defines cash gross margin as product revenue less subscription and support cost of sales, excluding depreciation & amortization.

Forward-looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance, including our guidance related to future performance, and are subject to substantial risks, uncertainties and assumptions. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make. Accordingly, you should not place undue reliance on these forward-looking statements. Forward-looking statements include any statement that does not directly relate to any historical or current fact and often include words such as “anticipate,” “believe,” “may,” “will,” “continue,” “seek,” “estimate,” “intend,” “hope,” “predict,” “could,” “should,” “would,” “project,” “plan,” “expect” or the negative or plural of these words or similar expressions, although not all forward-looking statements contain these words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but are not limited to our financial performance and our ability to achieve or sustain profitability or predict future results; our plans regarding future acquisitions and our ability to consummate and integrate acquisitions; our ability to expand our go to market operations, including our marketing and sales organization, and successfully increase sales of our products; our ability to obtain financing in the future on acceptable terms or at all; our expectations with respect to revenue, cost of revenue and operating expenses in future periods; our expectations with regard to revenue from perpetual licenses and professional services; our ability to adapt to macroeconomic factors impacting the global economy, including foreign currency exchange risk, inflation and supply chain constraints; our ability to attract and retain customers; our ability to successfully enter new markets and manage our international expansion; our ability to comply with privacy laws and regulations; our ability to deliver high-quality customer service; our plans regarding, and our ability to effectively manage, our growth; maintaining our senior management team and key personnel; the performance of our resellers; our ability to adapt to changing market conditions and competition; our ability to adapt to technological change and continue to innovate; global economic and financial market conditions and uncertainties; the growth of demand for cloud-based, digital transformation applications; our ability to integrate our applications with other software applications; maintaining and expanding our relationships with third parties; costs associated with defending intellectual property infringement and other claims; our ability to maintain, protect and enhance our brand and intellectual property; our expectations with regard to trends, such as seasonality, which affect our business; impairments to goodwill and other intangible assets; our beliefs regarding how our applications benefit customers and what our competitive strengths are; the operation, reliability and security of our third-party data centers; the risk that we did not consider another contingency included in this list; our expectations as to the payment of dividends; and factors that could affect our business and financial results identified in Upland’s filings with the Securities and Exchange Commission (the “SEC”), including Upland’s most recent 10-K filed with the SEC. Additional information will also be set forth in Upland’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Upland makes with the SEC. The forward-looking statements herein represent Upland’s views as of the date of this press release, and these views could change. However, while Upland may elect to update these forward-looking statements at some point in the future, Upland specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing the views of Upland as of any date subsequent to the date of this press release.

Upland Software, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

Three Months Ended March 31,

2023

2022

(unaudited)

(unaudited)

Revenue:

Subscription and support

$

72,914

$

73,627

Perpetual license

1,571

1,778

Total product revenue

74,485

75,405

Professional services

2,571

3,311

Total revenue

77,056

78,716

Cost of revenue:

Subscription and support

23,485

22,069

Professional services and other

2,051

2,686

Total cost of revenue

25,536

24,755

Gross profit

51,520

53,961

Operating expenses:

Sales and marketing

14,289

15,593

Research and development

12,530

12,067

General and administrative

17,189

19,614

Depreciation and amortization

15,094

11,051

Acquisition-related expenses

1,094

10,413

Impairment of goodwill

128,755

—

Total operating expenses

188,951

68,738

Loss from operations

(137,431

)

(14,777

)

Other expense:

Interest expense, net

(5,461

)

(7,762

)

Other income (expense), net

1,425

(418

)

Total other expense

(4,036

)

(8,180

)

Loss before benefit from income taxes

(141,467

)

(22,957

)

Benefit from income taxes

1,422

126

Net loss

$

(140,045

)

$

(22,831

)

Preferred stock dividends

(1,315

)

—

Net loss attributable to common stockholders

$

(141,360

)

$

(22,831

)

Net income (loss) per common share:

Net loss per common share, basic and diluted

$

(4.38

)

$

(0.73

)

Weighted-average common shares outstanding, basic and diluted

32,259,110

31,163,273

Upland Software, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

March 31,

December 31,

2023

2022

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

257,720

$

248,653

Accounts receivable, net of allowance

40,475

47,594

Deferred commissions, current

10,901

10,961

Unbilled receivables

6,225

5,313

Prepaid expenses and other current assets

10,193

8,774

Total current assets

325,514

321,295

Tax credits receivable

1,719

2,411

Property and equipment, net

1,719

1,830

Operating lease right-of-use asset

5,088

5,719

Intangible assets, net

232,368

248,851

Goodwill

349,990

477,043

Deferred commissions, noncurrent

13,552

13,794

Interest rate swap assets

33,014

41,168

Other assets

2,502

1,348

Total assets

$

965,466

$

1,113,459

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

14,793

$

14,939

Accrued compensation

9,427

7,393

Accrued expenses and other current liabilities

7,758

10,644

Deferred revenue

106,974

106,465

Liabilities due to sellers of businesses

447

5,429

Operating lease liabilities, current

2,822

3,205

Current maturities of notes payable

3,109

3,136

Total current liabilities

145,330

151,211

Notes payable, less current maturities

510,967

511,847

Deferred revenue, noncurrent

4,411

4,707

Operating lease liabilities, noncurrent

4,391

4,947

Noncurrent deferred tax liability, net

18,691

18,416

Other long-term liabilities

1,237

1,170

Total liabilities

685,027

692,298

Series A Convertible Preferred Stock

113,606

112,291

Stockholders’ equity:

Common stock

3

3

Additional paid-in capital

611,667

606,755

Accumulated other comprehensive loss

4,206

11,110

Accumulated deficit

(449,043

)

(308,998

)

Total stockholders’ equity

166,833

308,870

Total liabilities, convertible preferred stock and stockholders’ equity

$

965,466

$

1,113,459

Upland Software, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

Three Months Ended March 31,

2023

2022

(unaudited)

(unaudited)

Operating activities

Net loss

$

(140,045

)

$

(22,831

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

18,500

14,262

Change in fair value of liabilities due to sellers of businesses

—

(75

)

Deferred income taxes

(1,975

)

(1,341

)

Amortization of deferred costs

3,352

2,896

Foreign currency re-measurement loss

(859

)

—

Non-cash interest and other expense

573

555

Non-cash stock compensation expense

6,462

11,619

Non-cash loss on impairment of goodwill

128,755

—

Changes in operating assets and liabilities, net of purchase business combinations:

Accounts receivable

6,991

9,182

Prepaid expenses and other current assets

(4,845

)

1,787

Accounts payable

(184

)

(4,145

)

Accrued expenses and other liabilities

(859

)

(4,790

)

Deferred revenue

(41

)

1,103

Net cash provided by operating activities

15,825

8,222

Investing activities

Purchase of property and equipment

(215

)

(176

)

Purchase business combinations, net of cash acquired

—

(62,333

)

Net cash used in investing activities

(215

)

(62,509

)

Financing activities

Proceeds from notes payable, net of issuance costs

(130

)

(3

)

Payments on notes payable

(1,350

)

(1,350

)

Taxes paid related to net share settlement of equity awards

(235

)

(547

)

Issuance of common stock, net of issuance costs

—

182

Additional consideration paid to sellers of businesses

(5,066

)

(2,493

)

Net cash used in financing activities

(6,781

)

(4,211

)

Effect of exchange rate fluctuations on cash

238

(217

)

Change in cash and cash equivalents

9,067

(58,715

)

Cash and cash equivalents, beginning of period

248,653

189,158

Cash and cash equivalents, end of period

$

257,720

$

130,443

Upland Software, Inc.

Reconciliation of Adjusted EBITDA

(in thousands, unaudited)

Three Months Ended March 31,

2023

2022

Reconciliation of net loss to Adjusted EBITDA:

Net loss

$

(140,045

)

$

(22,831

)

Add:

Depreciation and amortization expense

18,500

14,262

Interest expense, net

5,461

7,762

Other expense (income), net

(1,425

)

418

Benefit from income taxes

(1,422

)

(126

)

Stock-based compensation expense

6,462

11,619

Acquisition-related expense

1,086

10,413

Non-recurring litigation costs

—

—

Purchase accounting deferred revenue discount

228

1,929

Impairment of goodwill

128,755

—

Adjusted EBITDA

$

17,600

$

23,446

Upland Software, Inc.

Reconciliation of Non-GAAP Net Loss and Non-GAAP EPS

(in thousands, except share and per share data, unaudited)

Three Months Ended March 31,

2023

2022

Reconciliation of net loss to non-GAAP net income:

Net loss

$

(140,045

)

$

(22,831

)

Add:

Stock-based compensation expense

6,462

11,619

Amortization of purchased intangibles

18,170

13,825

Amortization of debt discount

573

555

Acquisition-related expense

1,086

10,413

Nonrecurring litigation expense

—

—

Purchase accounting deferred revenue discount

228

1,929

Impairment of goodwill

128,755

—

Tax effect of adjustments above

(4,253

)

(2,603

)

Non-GAAP net income

$

10,976

$

12,907

Weighted average ordinary shares outstanding, basic

32,259,110

31,163,273

Weighted average ordinary shares outstanding, diluted

38,979,587

31,324,492

Non-GAAP earnings per share, basic

$

0.34

$

0.41

Non-GAAP earnings per share, diluted

$

0.28

$

0.41

Upland Software, Inc.

Reconciliation of Operating Cash Flow to Free Cash Flow

(in thousands, unaudited)

Three Months Ended March 31,

2023

2022

Reconciliation of Operating Cash Flow to Free Cash Flow:

Net cash provided by operating activities

$

15,825

$

8,222

Less: Purchase of Property and Equipment

(215

)

(176

)

Free Cash Flow

$

15,610

$

8,046

Upland Software, Inc.

Supplemental Financial Information

(in thousands, unaudited)

Three Months Ended March 31,

2023

2022

Stock-based compensation:

Cost of revenue

$

302

$

402

Research and development

655

748

Sales and marketing

576

1,474

General and administrative

4,929

8,995

Total

$

6,462

$

11,619

Three Months Ended March 31,

2023

2022

Depreciation:

Cost of revenue

$

2

$

2

Operating expense

328

435

Total

$

330

$

437

Amortization:

Cost of revenue

$

3,404

$

3,209

Operating expense

14,766

10,616

Total

$

18,170

$

13,825

View source version on businesswire.com: https://www.businesswire.com/news/home/20230503006029/en/

Investor Relations Contact:

Mike Hill

[email protected]

512-960-1031

Media Contact:

Kendell Kelton

[email protected]

678-575-7428

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Technology Software

MEDIA:

Logo

Posted on May 4, 2023 4:20 pm
Ross Stores, Inc. Announces First Quarter 2023 Earnings Release and Conference Call

Ross Stores, Inc. Announces First Quarter 2023 Earnings Release and Conference Call

DUBLIN, Calif.–(BUSINESS WIRE)–
Ross Stores, Inc. (NASDAQ: ROST) plans to release its first quarter 2023 earnings results on Thursday, May 18, 2023 at approximately 4:00 p.m. Eastern time.

Participants may listen to a real-time audio webcast of the conference call on Thursday, May 18, 2023 at 4:15 p.m. Eastern time by visiting the Investors section of the Company’s website located at www.rossstores.com.

A recorded version of the call will also be available at the website address, as well as via a telephone recording at 201-612-7415, Passcode #13738510, through 8:00 p.m. Eastern time on May 25, 2023.

Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with fiscal 2022 revenues of $18.7 billion. The Company operates Ross Dress for Less^® (“Ross”), the largest off-price apparel and home fashion chain in the United States in 40 states, the District of Columbia, and Guam. Ross offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates dd’s DISCOUNTS^® in 22 states that feature a more moderately-priced assortment of first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. Additional information is available at www.rossstores.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005912/en/

Connie Kao

Group Vice President, Investor & Media Relations

(925) 965-4668

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Home Goods Fashion Discount/Variety Retail Footwear

MEDIA:

Logo

Posted on May 4, 2023 4:20 pm
Micron Technology Announces Upcoming Investor Events

BOISE, Idaho, May 04, 2023 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU), announced today that company executives will participate in fireside chats at the following investor events:

J.P. Morgan’s 51st Annual Global Technology, Media and Communications Conference in Boston on Monday, May 22 at 6:00 a.m. Mountain time.

Goldman Sachs’ Global Semiconductor Conference in New York on Wednesday, May 31 at 5:30 a.m. Mountain time.

Live webcasts and subsequent replays of presentations can be accessed from Micron’s Investor Relations website at investors.micron.com.

About Micron Technology, Inc.
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2023 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Micron Media Relations Contact

Erica Rodriguez Pompen
Micron Technology, Inc.
+1 (408) 834-1873
[email protected]

Micron Investor Relations Contact
Farhan Ahmad
Micron Technology, Inc.
+1 (408) 834-1927
[email protected]

Posted on May 4, 2023 4:19 pm
Expedia Group Reports First Quarter 2023 Results

Expedia Group Reports First Quarter 2023 Results

Gross bookings increase 20% with record lodging gross bookings

Highest ever first quarter revenue, up 18%

Accelerated level of share repurchases at $600 million year-to-date

SEATTLE–(BUSINESS WIRE)–
Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the first quarter ended March 31, 2023.

“The first quarter saw strong travel demand driven by increasing international travel, major city travel, and the reopening in Asia. We invested into that demand driving record lodging bookings and continued strength in app usage and loyalty member counts. We also saw strong growth in B2B driven by an expanding partner base and growth from our existing partners. Our performance was enhanced by greater testing velocity and accelerating deployment of AI and ML, including our recent integration of ChatGPT into our iOS experience,” said Peter Kern, Vice Chairman and CEO, Expedia Group. “With our strategy gaining momentum, we saw the opportunity to continue to buy our equity attractively. We repurchased $600 million of shares, one of our highest levels ever year-to-date.”

First Quarter Highlights

Total gross bookings were $29.4 billion, an increase of 20%, compared to 2022.

Lodging bookings at $21.1 billion were at record levels.

Highest ever first quarter revenue was $2.7 billion, an increase of 18%, compared to 2022.

B2B revenue was $668 million, an increase of 55%, compared to 2022.

Record net cash provided by operating activities of $3.2 billion and record free cash flow of $2.9 billion.

Repurchased at an accelerated pace $600 million or approximately 6.0 million shares year-to-date.

Financial Summary & Operating Metrics (In millions except per share amounts)

Expedia Group, Inc.

Metric

Q1 2023

Q1 2022

Δ Y/Y

Booked room nights

94.5

77.0

23%

Gross bookings

$29,401

$24,412

20%

Revenue

$2,665

$2,249

18%

Operating loss

$(121)

$(135)

(11)%

Net loss attributable to Expedia Group, Inc.

$(145)

$(122)

18%

Diluted loss per share

$(0.95)

$(0.78)

21%

Adjusted EBITDA⁽¹⁾

$185

$173

7%

Adjusted net loss⁽¹⁾

$(30)

$(74)

(59)%

Adjusted EPS⁽¹⁾

$(0.20)

$(0.47)

(58)%

Net cash provided by operating activities

$3,157

$2,991

6%

Free cash flow⁽¹⁾

$2,924

$2,835

3%

(1) See Definitions of Non-GAAP Measures and reconciliations of GAAP to non-GAAP measures beginning on page 8.

Conference Call

Expedia Group, Inc. will webcast a conference call to discuss first quarter 2023 financial results and certain forward-looking information on Thursday, May 4, 2023 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public and available via ir.expediagroup.com. Expedia Group expects to maintain access to the webcast on the IR website for approximately twelve months subsequent to the initial broadcast.

About Expedia Group

Expedia Group, Inc. (NASDAQ: EXPE) companies power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, we help people experience the world in new ways and build lasting connections. We provide industry-leading technology solutions to fuel partner growth and success, while facilitating memorable experiences for travelers. Our organization is made up of three pillars: Expedia Product and Technology, focused on the group’s product and technical strategy and offerings; Expedia Brands, housing all our consumer brands; and Expedia for Business, consisting of business-to-business solutions and relationships throughout the travel ecosystem. The Expedia Group family of brands includes: Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, trivago®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media Solutions, CarRentals.com™, and Expedia Cruises™.

© 2023 Expedia, Inc., an Expedia Group company. All rights reserved. Trademarks and logos are the property of their respective owners. CST: 2029030-50

Expedia Group, Inc.

Trended Metrics

(All figures in millions)

The supplemental metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition, methodology and appropriateness of any of our supplemental metrics are subject to removal and/or change, and such changes could be material. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information filed with the SEC and the financial statements in our most recent earnings release.

2021

2022

2023

Full Year

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2021

2022

Units sold

Booked room nights

54.0

68.4

65.4

59.7

77.0

82.5

81.6

70.8

94.5

247.5

312.0

Booked air tickets

8.9

13.4

12.7

11.3

13.1

13.5

12.2

11.1

14.0

46.3

49.9

Gross bookings by business model

Agency

$6,737

$10,362

$8,855

$8,325

$11,346

$12,773

$10,904

$9,469

$13,425

$34,279

$44,492

Merchant

8,685

10,453

9,870

9,138

13,066

13,366

13,083

11,042

15,976

38,146

50,557

Total

$15,422

$20,815

$18,725

$17,463

$24,412

$26,139

$23,987

$20,511

$29,401

$72,425

$95,049

Lodging gross bookings

$12,002

$14,431

$13,046

$12,000

$17,756

$17,867

$17,099

$14,117

$21,055

$51,479

$66,839

Revenue by segment

B2C

$1,025

$1,715

$2,351

$1,730

$1,740

$2,420

$2,707

$1,874

$1,921

$6,821

$8,741

B2B

184

305

490

481

432

650

788

676

668

1,460

2,546

trivago (third-party revenue)

37

91

121

68

77

111

124

68

76

317

380

Total

$1,246

$2,111

$2,962

$2,279

$2,249

$3,181

$3,619

$2,618

$2,665

$8,598

$11,667

Revenue by product

Lodging

$903

$1,533

$2,300

$1,713

$1,610

$2,400

$2,881

$2,014

$2,029

$6,449

$8,905

Air

50

78

61

65

74

95

100

93

113

254

362

Advertising and media

88

161

202

152

166

213

222

176

175

603

777

Other⁽¹⁾

205

339

399

349

399

473

416

335

348

1,292

1,623

Total

$1,246

$2,111

$2,962

$2,279

$2,249

$3,181

$3,619

$2,618

$2,665

$8,598

$11,667

Revenue by geography

U.S. points of sale

$1,001

$1,736

$2,177

$1,655

$1,656

$2,208

$2,358

$1,717

$1,748

$6,569

$7,939

Non-U.S. points of sale

245

375

785

624

593

973

1,261

901

917

2,029

3,728

Total

$1,246

$2,111

$2,962

$2,279

$2,249

$3,181

$3,619

$2,618

$2,665

$8,598

$11,667

Adjusted EBITDA by segment⁽³⁾

B2C

$106

$316

$879

$481

$188

$582

$943

$411

$148

$1,782

$2,124

B2B

(57)

(4)

74

97

80

156

221

142

133

110

599

Other⁽²⁾

(107)

(111)

(98)

(99)

(95)

(90)

(85)

(104)

(96)

(415)

(374)

Total

$(58)

$201

$855

$479

$173

$648

$1,079

$449

$185

$1,477

$2,349

Net income (loss) attributable to Expedia Group common stockholders⁽⁴⁾

$(606)

$(301)

$362

$276

$(122)

$(185)

$482

$177

$(145)

$(269)

$352

(1) Other revenue primarily includes insurance, car rental, destination services and cruise revenue.

(2) Other is comprised of trivago, corporate and intercompany eliminations. See the section below titled “Tabular Reconciliations for Non-GAAP Measures — Adjusted EBITDA by segment” for additional details.

(3) See Definitions of Non-GAAP Measures and reconciliations of GAAP to non-GAAP measures beginning on page 8.

(4) Expedia Group does not calculate or report net income (loss) by segment.

Notes:

All trivago revenue is classified as Non-U.S. point of sale.

B2B includes Egencia, our former full-service travel management company, through its sale in November 2021.

Some numbers may not add due to rounding.

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

(Unaudited)

Three months ended

March 31,

2023

2022

Revenue

$

2,665

$

2,249

Costs and expenses:

Cost of revenue (exclusive of depreciation and amortization shown separately below) ⁽¹⁾

414

371

Selling and marketing⁽¹⁾

1,674

1,339

Technology and content⁽¹⁾

317

270

General and administrative ⁽¹⁾

184

186

Depreciation and amortization

192

197

Legal reserves, occupancy tax and other

5

21

Operating loss

(121

)

(135

)

Other income (expense):

Interest income

43

3

Interest expense

(61

)

(81

)

Other, net

78

5

Total other income (expense), net

60

(73

)

Loss before income taxes

(61

)

(208

)

Provision for income taxes

(79

)

85

Net loss

(140

)

(123

)

Net (income) loss attributable to non-controlling interests

(5

)

1

Net loss attributable to Expedia Group, Inc.

$

(145

)

$

(122

)

Earnings (loss) per share attributable to Expedia Group, Inc. available to common stockholders:

Basic

$

(0.95

)

$

(0.78

)

Diluted

(0.95

)

(0.78

)

Shares used in computing earnings (loss) per share (000’s):

Basic

152,477

156,336

Diluted

152,477

156,366

(1) Includes stock-based compensation as follows:

Cost of revenue

$

3

$

3

Selling and marketing

20

15

Technology and content

34

27

General and administrative

46

45

EXPEDIA GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands and par value)

March 31,

2023

December 31,

2022

March 31,

2022

(Unaudited)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

5,904

$

4,096

$

5,552

Restricted cash and cash equivalents

2,483

1,755

2,583

Short-term investments

44

48

—

Accounts receivable, net of allowance of $45, $40 and $66

2,523

2,078

1,736

Income taxes receivable

53

40

93

Prepaid expenses and other current assets

1,119

774

1,183

Total current assets

12,126

8,791

11,147

Property and equipment, net

2,260

2,210

2,169

Operating lease right-of-use assets

353

363

395

Long-term investments and other assets

1,198

1,184

1,468

Deferred income taxes

703

661

864

Intangible assets, net

1,196

1,209

1,368

Goodwill

7,150

7,143

7,166

TOTAL ASSETS

$

24,986

$

21,561

$

24,577

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable, merchant

$

1,531

$

1,709

$

1,292

Accounts payable, other

1,010

947

934

Deferred merchant bookings

11,036

7,151

9,203

Deferred revenue

186

163

178

Income taxes payable

104

21

19

Accrued expenses and other current liabilities

745

787

843

Total current liabilities

14,612

10,778

12,469

Long-term debt

6,243

6,240

7,719

Deferred income taxes

35

52

58

Operating lease liabilities

305

312

350

Other long-term liabilities

501

451

414

Commitments and contingencies

Stockholders’ equity:

Common stock: $.0001 par value; Authorized shares: 1,600,000

—

—

—

Shares issued: 279,097, 278,264 and 276,329; Shares outstanding: 144,084, 147,757 and 151,554

Class B common stock: $.0001 par value; Authorized shares: 400,000

—

—

—

Shares issued: 12,800; Shares outstanding: 5,523

Additional paid-in capital

14,938

14,795

14,431

Treasury stock – Common stock and Class B, at cost; Shares 142,289, 137,783 and 132,051

(11,341

)

(10,869

)

(10,309

)

Retained earnings (deficit)

(1,554

)

(1,409

)

(1,883

)

Accumulated other comprehensive income (loss)

(211

)

(234

)

(161

)

Total Expedia Group, Inc. stockholders’ equity

1,832

2,283

2,078

Non-redeemable non-controlling interests

1,458

1,445

1,489

Total stockholders’ equity

3,290

3,728

3,567

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

24,986

$

21,561

$

24,577

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Three months ended

March 31,

2023

2022

Operating activities:

Net loss

$

(140

)

$

(123

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation of property and equipment, including internal-use software and website development

177

175

Amortization of intangible assets

15

22

Amortization of stock-based compensation

103

90

Deferred income taxes

(57

)

(101

)

Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net

(8

)

6

Realized (gain) loss on foreign currency forwards, net

(12

)

32

Gain on minority equity investments, net

(1

)

(21

)

Other, net

14

2

Changes in operating assets and liabilities:

Accounts receivable

(456

)

(476

)

Prepaid expenses and other assets

(293

)

(356

)

Accounts payable, merchant

(178

)

(41

)

Accounts payable, other, accrued expenses and other liabilities

79

280

Tax payable/receivable, net

29

(13

)

Deferred merchant bookings

3,885

3,515

Net cash provided by operating activities

3,157

2,991

Investing activities:

Capital expenditures, including internal-use software and website development

(233

)

(156

)

Sales and maturities of investments

5

200

Proceeds from initial exchange of cross-currency interest rate swaps

—

337

Payments for initial exchange of cross-currency interest rate swaps

—

(337

)

Other, net

33

(31

)

Net cash provided by (used in) investing activities

(195

)

13

Financing activities:

Payment of long-term debt

—

(724

)

Purchases of treasury stock

(469

)

(47

)

Proceeds from exercise of equity awards and employee stock purchase plan

29

101

Other, net

3

7

Net cash used in financing activities

(437

)

(663

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

11

(11

)

Net increase in cash, cash equivalents and restricted cash and cash equivalents

2,536

2,330

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

5,851

5,805

Cash, cash equivalents and restricted cash and cash equivalents at end of period

$

8,387

$

8,135

Supplemental cash flow information

Cash paid for interest

$

81

$

117

Income tax payments, net

34

26

Notes & Definitions:

Booked Room Nights: Booked room nights represent booked hotel room nights and include property nights for our B2C reportable segment and booked hotel room nights for our B2B reportable segment. Booked hotel room nights include both merchant and agency hotel stays. Property nights are related to our alternative accommodation business.

Booked Air Tickets : Includes both merchant and agency air bookings.

Gross Bookings: Gross bookings generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds.

Lodging Metrics: Reported on a booked basis except for revenue, which is on a stayed basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.

B2C: The B2C segment (formerly referred to as Retail), which consists of the aggregation of operating segments, provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com.

B2B: The B2B segment is comprised of Expedia Partner Solutions, which operates private label and co-branded programs to make travel services available to leisure travelers though third-party company branded websites and Egencia through its sale on November 1, 2021. In addition, this segment also includes Expedia Cruises and Traveldoo.

trivago: The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.

Corporate: Includes unallocated corporate expenses

Definitions of Non-GAAP Measures

Expedia Group reports Adjusted EBITDA, Leverage Ratio, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company’s annual and quarterly reports filed with the Securities and Exchange Commission. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Adjusted EBITDA is defined as net income (loss) attributable to Expedia Group adjusted for:

(1) net income (loss) attributable to non-controlling interests;

(2) provision for income taxes;

(3) total other expenses, net;

(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;

(5) acquisition-related impacts, including

(i) amortization of intangible assets and goodwill and intangible asset impairment,

(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements; and

(iii) upfront consideration paid to settle employee compensation plans of the acquiree;

(6) certain other items, including restructuring;

(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;

(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and

(9) depreciation.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.

Trailing Twelve Month Financial Information

Expedia Group includes certain unaudited financial information for the trailing twelve months (“TTM”) ended March 31, 2023, which is calculated as the three months ended March 31, 2023 plus the year ended December 31, 2022 less the three months ended March 31, 2022. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding its recent financial performance, and it views this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess its historical results.

Adjusted Net Income (Loss) generally captures all items on the statements of operations that occur in normal course operations and have been, or ultimately will be, settled in cash and is defined as net income (loss) attributable to Expedia Group plus the following items, net of tax^(a):

(1) stock-based compensation expense, including compensation expense related to equity plans of certain subsidiaries and equity-method investments;

(2) acquisition-related impacts, including;

(i) amortization of intangible assets, including as part of equity-method investments, and goodwill and intangible asset impairment;

(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;

(iii) upfront consideration paid to settle employee compensation plans of the acquiree; and

(iv) gains (losses) recognized on non-controlling investment basis adjustments when we acquire or lose controlling interests;

(3) currency gains or losses on U.S. dollar denominated cash;

(4) the changes in fair value of equity investments;

(5) certain other items, including restructuring charges;

(6) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g., hotel occupancy and excise taxes), related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings, including as part of equity method investments;

(7) discontinued operations;

(8) the non-controlling interest impact of the aforementioned adjustment items; and

(9) unrealized gains (losses) on revenue hedging activities that are included in other, net.

Adjusted Net Income (Loss) includes preferred share dividends. We believe Adjusted Net Income (Loss) is useful to investors because it represents Expedia Group’s combined results, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses and items not directly tied to the core operations of our businesses.

^(a)Effective January 1, 2023, we changed our methodology for the computation of the effective tax rate on pretax adjusted net income to a long-term projected tax rate as our management believes this tax rate provides better consistency across reporting periods and produces results that are reflective of Expedia Group’s long-term effective tax rate. This projected effective tax rate excludes the income tax effects of Adjusted Net Income items described above and eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Based on our current long-term projections, we are using an effective tax rate on pretax adjusted net income of 21.5% for 2023.

Adjusted EPS is defined as Adjusted Net Income (Loss) divided by adjusted weighted average shares outstanding, which, when applicable, include dilution from our convertible debt instruments per the treasury stock method for Adjusted EPS. The treasury stock method assumes we would elect to settle the principal amount of the debt for cash and the conversion premium for shares. If the conversion prices for such instruments exceed our average stock price for the period, the instruments generally would have no impact to adjusted weighted average shares outstanding. This differs from the GAAP method for dilution from our convertible debt instruments, which include them on an if-converted method. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Expedia Group’s consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Net Income (Loss) and Adjusted EPS have similar limitations as Adjusted EBITDA. In addition, Adjusted Net Income (Loss) does not include all items that affect our net income (loss) and net income (loss) per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of operations.

Free Cash Flow is defined as net cash flow provided by operating activities less capital expenditures. Management believes Free Cash Flow is useful to investors because it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the consolidated statements of cash flows.

Adjusted Expenses (cost of revenue, direct and indirect selling and marketing, technology and content and general and administrative expenses) exclude stock-based compensation related to expenses for stock options, restricted stock units and other equity compensation under applicable stock-based compensation accounting standards. Expedia Group excludes stock-based compensation from these measures primarily because they are non-cash expenses that we do not believe are necessarily reflective of our ongoing cash operating expenses and cash operating income. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting applicable stock-based compensation accounting standards, management believes that providing non-GAAP financial measures that exclude stock-based compensation allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies, as well as providing management with an important tool for financial operational decision making and for evaluating our own recurring core business operating results over different periods of time. There are certain limitations in using financial measures that do not take into account stock-based compensation, including the fact that stock-based compensation is a recurring expense and a valued part of employees’ compensation. Therefore, it is important to evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated Statements of Operations for stock-based compensation by line item.

Expedia Group, Inc. (excluding trivago) In order to provide increased transparency on the transaction-based component of the business, Expedia Group is reporting results both in total and excluding trivago.

In addition, we evaluate certain operating and financial measures, including revenue growth, on both an as-reported and excluding the impact of foreign exchange, FX neutral, basis. FX neutral results are among the primary metrics by which management evaluates the performance of the business and management believes that investors should have access to the same set of tools that management uses to analyze our results. We estimate FX neutral revenue growth by (i) excluding the FX impacts resulting from the time period between a transaction’s booking date and revenue recognition date for both the current and prior year periods, and (ii) converting our current-year period results for transactions recorded in currencies other than U.S. Dollars using the corresponding prior-year period exchange rates rather than the current-year period exchange rates.

Tabular Reconciliations for Non-GAAP Measures

Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) by Segment⁽¹⁾

Three months ended March 31, 2023

B2C

B2B

trivago

Corporate &

Eliminations

Total

(In millions)

Operating income (loss)

$

18

$

106

$

19

$

(264

)

$

(121

)

Realized gain (loss) on revenue hedges

4

2

—

—

6

Legal reserves, occupancy tax and other

—

—

—

5

5

Stock-based compensation

—

—

—

103

103

Amortization of intangible assets

—

—

—

15

15

Depreciation

126

25

1

25

177

Adjusted EBITDA⁽¹⁾

$

148

$

133

$

20

$

(116

)

$

185

Three months ended March 31, 2022

B2C

B2B

trivago

Corporate &

Eliminations

Total

(In millions)

Operating income (loss)

$

60

$

60

$

23

$

(278

)

$

(135

)

Legal reserves, occupancy tax and other

—

—

—

21

21

Stock-based compensation

—

—

—

90

90

Amortization of intangible assets

—

—

—

22

22

Depreciation

128

20

2

25

175

Adjusted EBITDA⁽¹⁾

$

188

$

80

$

25

$

(120

)

$

173

(1) Adjusted EBITDA for our B2C and B2B segments includes allocations of certain expenses, primarily cost of revenue and facilities, the total costs of our global travel supply organizations, the majority of platform and marketplace technology costs, and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.

Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization)

Three months ended

March 31,

Year Ended December 31,

TTM

March 31,

2023

2022

2022

2023

($ in millions)

Net income (loss) attributable to Expedia Group, Inc.

$

(145

)

$

(122

)

$

352

$

329

Net income (loss) attributable to non-controlling interests

5

(1

)

(9

)

(3

)

Provision for income taxes

79

(85

)

195

359

Total other (income) expense, net

(60

)

73

547

414

Operating income (loss)

(121

)

(135

)

1,085

1,099

Gain (loss) on revenue hedges related to revenue recognized

6

—

(6

)

—

Legal reserves, occupancy tax and other

5

21

23

7

Stock-based compensation

103

90

374

387

Depreciation and amortization

192

197

792

787

Impairment of intangible assets

—

—

81

81

Adjusted EBITDA

$

185

$

173

$

2,349

$

2,361

Net income margin⁽¹⁾

(5.4

)%

(5.4

)%

3.0

%

2.7

%

Adjusted EBITDA margin⁽¹⁾

6.9

%

7.7

%

20.1

%

19.5

%

Long-term debt

$

6,243

Long-term debt to net income ratio

19.0

Long-term debt

$

6,243

Unamortized discounts and debt issuance costs

51

Adjusted debt

$

6,294

Leverage ratio⁽²⁾

2.7

(1) Net income and Adjusted EBITDA margins represent net income (loss) attributable to Expedia Group, Inc. or Adjusted EBITDA divided by revenue.

(2) Leverage ratio represents adjusted debt divided by TTM Adjusted EBITDA.

Adjusted Net Income (Loss) & Adjusted EPS

Three months ended

March 31,

2023

2022

(In millions, except share and per share data)

Net loss attributable to Expedia Group, Inc.

$

(145

)

$

(122

)

Less: Net (income) loss attributable to non-controlling interests

(5

)

1

Less: Provision for income taxes

(79

)

85

Loss before income taxes

(61

)

(208

)

Amortization of intangible assets

15

22

Stock-based compensation

103

90

Legal reserves, occupancy tax and other

5

21

Unrealized (gain) loss on revenue hedges

(2

)

7

Gain on minority equity investments, net

(1

)

(21

)

TripAdvisor tax indemnification adjustment

(69

)

—

Gain on sale of business, net

(20

)

(2

)

Adjusted loss before income taxes

(30

)

(91

)

GAAP Provision for income taxes

(79

)

85

Provision for income taxes for adjustments

85

(61

)

Total Adjusted provision for income taxes

6

24

Total Adjusted income tax rate

21.5

%

26.3

%

Non-controlling interests

(6

)

(7

)

Adjusted net loss attributable to Expedia Group, Inc.

$

(30

)

$

(74

)

GAAP diluted weighted average shares outstanding (000’s)

152,477

156,366

GAAP diluted loss per share

$

(0.95

)

$

(0.78

)

Adjusted loss per share attributable to Expedia Group, Inc.

$

(0.20

)

$

(0.47

)

Ex-trivago Adjusted Net Income (Loss) and Adjusted EPS

Adjusted net loss attributable to Expedia Group, Inc.

$

(30

)

$

(74

)

Less: Adjusted net income attributable to trivago

9

14

Adjusted net loss excluding trivago

$

(39

)

$

(88

)

Adjusted loss per share attributable to Expedia Group, Inc.

$

(0.20

)

$

(0.47

)

Less: Adjusted earnings per share attributable to trivago

0.06

0.09

Adjusted loss per share excluding trivago

$

(0.26

)

$

(0.56

)

Free Cash Flow

Three months ended

March 31,

2023

2022

(In millions)

Net cash provided by operating activities

$

3,157

$

2,991

Less: Total capital expenditures

(233

)

(156

)

Free cash flow

$

2,924

$

2,835

Adjusted Expenses (Cost of revenue, direct and indirect selling and marketing, technology and content and general and administrative expenses)

Three months ended

March 31,

2023

2022

(In millions)

Cost of revenue

$

414

$

371

Less: stock-based compensation

3

3

Adjusted cost of revenue

$

411

$

368

Less: trivago cost of revenue⁽¹⁾

5

4

Adjusted cost of revenue excluding trivago

$

406

$

364

Selling and marketing expense – direct

$

1,487

$

1,176

Selling and marketing expense – indirect

187

163

Selling and marketing expense

1,674

1,339

Less: stock-based compensation

20

15

Adjusted selling and marketing expense

$

1,654

$

1,324

Less: trivago selling and marketing expense⁽¹⁾⁽²⁾

31

27

Adjusted selling and marketing expense excluding trivago

$

1,623

$

1,297

Technology and content expense

$

317

$

270

Less: stock-based compensation

34

27

Adjusted technology and content expense

$

283

$

243

Less: trivago technology and content expense⁽¹⁾

11

13

Adjusted technology and content expense excluding trivago

$

272

$

230

General and administrative expense

$

184

$

186

Less: stock-based compensation

46

45

Adjusted general and administrative expense

$

138

$

141

Less: trivago general and administrative expense⁽¹⁾

8

8

Adjusted general and administrative expense excluding trivago

$

130

$

133

Total adjusted overhead expenses⁽³⁾

$

588

$

532

Note: Some numbers may not add due to rounding.

(1) trivago amount presented without stock-based compensation as those are included with the consolidated totals above.

(2) Selling and marketing expense adjusted to add back B2C direct marketing spend on trivago eliminated in consolidation.

(3) Total adjusted overhead expenses is the sum of adjusted expenses for Selling and marketing – indirect, Technology and content, and General and administrative.

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This release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements are based on assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as “believe,” “estimate,” “expect” and “will,” or the negative of these terms or other similar expressions, among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future revenues, expenses, margins, profitability, net income (loss), earnings per share and other measures of results of operations and the prospects for future growth of Expedia Group, Inc.’s business. 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 described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed periodic reports on Form 10-K and Form 10-Q, which are available on our investor relations website at ir.expediagroup.com and on the SEC website at www.sec.gov. All information provided in this release is as of May 4, 2023. Undue reliance should not be placed on forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

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Posted on May 4, 2023 4:19 pm
Vaxart Provides Business Update and Reports First Quarter 2023 Financial Results

On track to report key top line data from two Phase 2 norovirus vaccine studies mid-year and in Q3 2023

Continue to anticipate cash runway into Q2 2024

Conference call today at 4:30 p.m. ET

SOUTH SAN FRANCISCO, Calif., May 04, 2023 (GLOBE NEWSWIRE) — Vaxart, Inc. (NASDAQ: VXRT) today announced its business update and financial results for the first quarter of 2023.

“During the first quarter, we continued to advance our norovirus oral pill vaccine program and remain on track to report two important clinical data readouts in 2023,” said Andrei Floroiu, Vaxart’s Chief Executive Officer. “Norovirus represents a significant public health issue with no approved vaccine, and it places a tremendous economic burden on society. More than 21 million people are infected in the U.S. each year, creating an annual disease burden of more than $10 billion domestically.

“Our innovative approach to addressing this unmet medical need is supported by data from six completed norovirus clinical trials that have enrolled nearly 350 subjects. These data have shown immune responses from our vaccine to be strong, long-lasting, comparable to natural infection and similar in both elderly and young populations,” Mr. Floroiu added.

Recent Business Highlights

Norovirus Vaccine Developments

In April 2023, Vaxart presented previously published research from its norovirus oral vaccine program at the World Vaccine Congress in Washington, D.C. Dr. James F. Cummings, Vaxart’s Chief Medical Officer, exhibited findings demonstrating potent serum and mucosal immune responses to norovirus with Vaxart’s oral bivalent norovirus vaccine candidate.

In March 2023, Vaxart provided a detailed overview and reviewed data from its norovirus oral pill vaccine program during presentations at its sponsored norovirus Key Opinion Leader (KOL) event. Featured experts on the disease explained the current disease burden posed by norovirus, as well as its significant economic and societal costs that impact the U.S. on an annual basis. A replay of the KOL event is available here.

In February 2023, Vaxart initiated a Phase 2 dose-ranging study of its bivalent norovirus oral vaccine candidate and expects to report topline data from this study in mid-2023.

COVID-19 Vaccine Developments

Vaxart continues to conduct preclinical development of novel constructs for its COVID-19 oral vaccine candidate. Based on the mucosal cross-reactivity data reported to date in Vaxart’s clinical studies of its COVID-19 vaccine candidates, the Company believes it may be able to create an oral pan-betacoronavirus vaccine. A pan-betacoronavirus vaccine may provide more effective and flexible protection, positioned to prevent both current and emerging coronavirus threats and other beta-coronaviruses, making it a valuable tool for pandemic preparedness.

During the World Vaccine Congress, Dr. Sean Tucker, Vaxart’s Founder and Chief Scientific Officer, presented previously published data from Vaxart studies demonstrating the platform’s ability to block transmission and boost existing COVID-19 vaccines by oral tablet vaccination.

Anticipated 2023 Clinical Milestones

Vaxart continues to make progress on its anticipated milestones in 2023:

Report topline data from the ongoing Phase 2 dose-ranging study of Vaxart’s bivalent norovirus vaccine candidate in mid-2023.

Report topline data from the ongoing Phase 2 challenge study of Vaxart’s monovalent norovirus vaccine candidate in Q3 2023.

Initiate Gates Foundation-funded clinical trial to evaluate the ability of Vaxart’s norovirus vaccine candidate to induce antibodies in breast milk and transfer of antibodies to young infants.

Financial Results for the Three Months Ended March 31, 2023

Vaxart ended the first quarter of 2023 with cash, cash equivalents, restricted cash and marketable securities of $71.8 million, compared to $95.7 million as of December 31, 2022. The decrease was primarily due to cash used in operations.

Vaxart reported a net loss of $25.1 million for the first quarter of 2023, compared to $25.1 million for the first quarter of 2022. Net loss per share for the first quarter of 2023 was $0.19, compared to a net loss of $0.20 per share in the first quarter of 2022.

Revenue for the first quarter of 2023 was $675,000, compared to $85,000 in the first quarter of 2022. The increase was due to revenue recognition for services rendered in relation to Vaxart’s grant from the Gates Foundation and higher royalty revenue from sales of Inavir in Japan.

Research and development expenses were $19.6 million for the first quarter of 2023, compared to $18.2 million for the first quarter of 2022. The increase was mainly due to increases in headcount and related costs and clinical trial expenses related to the Company’s norovirus vaccine candidate.

General and administrative expenses were $6.6 million for the first quarter of 2023, compared to $6.7 million for the first quarter of 2022.

Conference Call

The Vaxart senior management team will host a conference call to discuss the business update and financial results for the first quarter of 2023 today, beginning at 4:30 p.m. ET.

The conference call can be accessed using the following information:

Webcast: Click here
Date: Thursday, May 4, 2023 – 4:30 p.m. ET
Domestic: 888-272-8703
International: 713-481-1320
Conference ID: 13737884
Investors may submit written questions in advance of the conference call to [email protected].

A replay of the webcast will be available for 30 days on Vaxart’s website at www.vaxart.com following the conclusion of the event.

About Vaxart

Vaxart is a clinical-stage biotechnology company developing a range of oral recombinant vaccines based on its proprietary delivery platform. Vaxart vaccines are designed to be administered using pills that can be stored and shipped without refrigeration and eliminate the risk of needle-stick injury. Vaxart believes that its proprietary pill vaccine delivery platform is suitable to deliver recombinant vaccines, positioning the company to develop oral versions of currently marketed vaccines and to design recombinant vaccines for new indications. Vaxart’s development programs currently include pill vaccines designed to protect against norovirus, coronavirus, seasonal influenza, and respiratory syncytial virus (RSV), as well as a therapeutic vaccine for human papillomavirus (HPV), Vaxart’s first immune-oncology indication. Vaxart has filed broad domestic and international patent applications covering its proprietary technology and creations for oral vaccination using adenovirus and TLR3 agonists.

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Vaxart’s strategy, prospects, plans and objectives, results from preclinical and clinical trials, commercialization agreements and licenses, and beliefs and expectations of management are forward-looking statements. These forward-looking statements may be accompanied by such words as “should,” “believe,” “could,” “potential,” “will,” “expected,” “anticipate,” “plan,” and other words and terms of similar meaning. Examples of such statements include, but are not limited to, statements relating to Vaxart’s ability to develop and commercialize its product candidates, including its vaccine booster products; Vaxart’s expectations regarding clinical results and trial data; and Vaxart’s expectations with respect to the effectiveness of its product candidates. Vaxart may not actually achieve the plans, carry out the intentions, or meet the expectations or projections disclosed in the forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations, and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Vaxart makes, including uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement, and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates, and/or launch dates, as well as the possibility of unfavorable new clinical data and further analyses of existing clinical data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from the clinical studies; decisions by regulatory authorities impacting labeling, manufacturing processes, and safety that could affect the availability or commercial potential of any product candidate, including the possibility that Vaxart’s product candidates may not be approved by the FDA or non-U.S. regulatory authorities; that, even if approved by the FDA or non-U.S. regulatory authorities, Vaxart’s product candidates may not achieve broad market acceptance; that a Vaxart collaborator may not attain development and commercial milestones; that Vaxart or its partners may experience manufacturing issues and delays due to events within, or outside of, Vaxart’s or its partners’ control; difficulties in production, particularly in scaling up initial production, including difficulties with production costs and yields, quality control, including stability of the product candidate and quality assurance testing, shortages of qualified personnel or key raw materials, and compliance with strictly enforced federal, state, and foreign regulations; that Vaxart may not be able to obtain, maintain, and enforce necessary patent and other intellectual property protection; that Vaxart’s capital resources may be inadequate; Vaxart’s ability to resolve pending legal matters; Vaxart’s ability to obtain sufficient capital to fund its operations on terms acceptable to Vaxart, if at all; the impact of government healthcare proposals and policies; competitive factors; and other risks described in the “Risk Factors” sections of Vaxart’s Quarterly and Annual Reports filed with the SEC. Vaxart does not assume any obligation to update any forward-looking statements, except as required by law.
    
Contacts

Vaxart Media Relations: Investor Relations:      

Mark Herr     Andrew Blazier

Vaxart, Inc. Finn Partners

[email protected] [email protected]   

(203) 517-8957      (646) 871-8486

Vaxart, Inc.

Condensed Consolidated Balance Sheets

March 31, 2023 December 31, 2022

(Unaudited) (1
)

(in thousands)

Assets

Cash, cash equivalents and restricted cash (2) $ 48,434 $ 46,013

Investments in marketable debt securities 23,377 49,704

Accounts receivable 264 20

Prepaid and other assets 6,215 7,282

Property and equipment, net 14,373 15,585

Right-of-use assets, net 27,843 25,715

Intangible assets, net 4,837 5,020

Goodwill 4,508 4,508

Total Assets $ 129,851 $ 153,847

Liabilities and stockholders’ equity

Accounts payable $ 3,882 $ 5,514

Deferred grant revenue 1,603 2,000

Accrued and other liabilities 7,223 8,315

Operating lease liabilities 21,516 21,705

Liability related to sale of future royalties 5,874 5,716

Total liabilities 40,098 43,250

Stockholders’ equity 89,753 110,597

Total liabilities and stockholders’ equity $ 129,851 $ 153,847

(1) Derived from the audited consolidated financial statements of Vaxart, Inc. for the year ended December 31, 2022, included on the Form 10-K filed with the Securities and Exchange Commission on March 15, 2023.

(2) Cash, cash equivalents and restricted cash includes $1.6 million and $2.0 million of restricted cash as of March 31, 2023 and December 31, 2022, respectively.

Vaxart, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

Quarter Ended March 31,

2023 2022

(Unaudited) (1
)

(in thousands, except share and per share amounts)

Revenue $ 675 $ 85

Operating expenses:

Research and development 19,622 18,203

General and administrative 6,625 6,658

Total operating expenses 26,247 24,861

Loss from operations

(25,572 ) (24,776 )

Other income and (expenses), net 461 (305 )

Loss before income taxes
(25,111 ) (25,081 )

Provision for income taxes 29 20

Net loss

$ (25,140 ) $ (25,101 )

Net loss per share, basic and diluted

$ (0.19 ) $ (0.20 )

Shares used in computing net loss per share, basic and diluted 135,213,196 125,795,255

(1) Derived from the audited consolidated financial statements of Vaxart, Inc. for the year ended December 31, 2022,

included on the Form 10-K filed with the Securities and Exchange Commission on March 15, 2023.

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