Market Newsdesk

May 12, 2021 4:09 pm

Amdocs Completes Successful Subscriber Migration for Altice USA

ST. LOUIS, May 12, 2021 (GLOBE NEWSWIRE) — Amdocs (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today announced that it successfully completed a new migration for Altice USA, one of the largest broadband communications and video services providers in the United States.

The migration included the consolidation of Service Electric Cable TV’s subscriber base to Altice USA’s operational and billing support environments, allowing them to streamline services to acquired customers while expanding their footprint and reducing operating costs.

Anthony Goonetilleke, Group President of Media, Network and Technology at Amdocs, said: “We’re proud to continue growing our relationship, as Altice is consistently providing market-leading experiences for their customers and moving the industry forward.”

Supporting Resources

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About Amdocs

Amdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 27,000 employees partner with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries. Our cloud-native, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020. For more information, visit Amdocs at www.amdocs.com.

Amdocs’ Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2020 filed on December 14, 2020 and our Form 6-K furnished for the first quarter of fiscal 2021 on February 16, 2021.

Media Contacts:
Michael Zema
Amdocs Public Relations
E-mail: [email protected]

Emily Holt
PAN Communications for Amdocs
Email: [email protected]

May 12, 2021 4:09 pm

MedAvail Reports First Quarter 2021 Financial Results

MedAvail Reports First Quarter 2021 Financial Results

MISSISSAUGA, Ontario & PHOENIX–(BUSINESS WIRE)–
MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a technology-enabled pharmacy company, today reported financial results for the three months ended March 31, 2021.

“Our first quarter results illustrate a strong start to the year, as our revenue grew over 30% on a sequential basis,” said Ed Kilroy, Chief Executive Officer of MedAvail. “We continue to make substantial progress on expanding into new geographies and fostering our enterprise customer relationships. Moreover, we are very excited to be entering the Florida region in the second half of 2021, with our first central pharmacy in Florida expected to open in the Orlando area in July. We believe we have a significant annual market opportunity of $3.7 billion in Florida with hundreds of potential clinics for our SpotRx solution.”

Mr. Kilroy continued, “We remain very excited about what we believe is our opportunity to approximately double our revenue this year as a result of expansions into new geographies as well as with current customers. With strong interest in our SpotRx pharmacy model and technology, and the backdrop of the recovery from COVID-19 we are beginning to see across the U.S., we are confident that we are well-positioned to drive further momentum during 2021 and beyond.”

First Quarter 2021 Financial and Operational Highlights

All comparisons, unless otherwise noted, are to the three months ended March 31, 2020.

Total net revenue was $4.0 million, an increase of 185%
Total net revenue by segment
- Retail Pharmacy Services revenue increased 164% to $3.4 million
- Pharmacy Technology revenue increased 430% to $0.6 million
1 MedCenter deployment compared to 5 total MedCenter deployments
Net Loss was $9.5 million compared to a net loss of $5.7 million
Adjusted EBITDA losses of $8.9 million compared to $5.2 million
Cash, cash equivalents, and restricted cash totaled $47.6 million as of quarter-end

Full Year 2021 Financial Outlook

With the healthcare industry beginning to emerge from the COVID-19 challenges and return to a more normal environment, many clients who had delayed scheduled installations in the first quarter of 2021 or early in the second quarter of 2021 are beginning to reschedule deployments. As such, the minimum number of new clinics we expect to deploy in 2021 remains unchanged at 45. Based on these delays and impacts on installed sites in the first quarter and early second quarter of 2021, MedAvail has narrowed its 2021 net revenue guidance expectation from the prior range of between $27 to $34 million to a new range of between $27 to $31 million, which represents growth of between 93% to 121% over 2020 revenue of $14 million.

We do not expect the impact of the implementation delays on revenue to persist as we return to a normalized healthcare environment, and we continue to expect strong sequential revenue growth throughout the year.

Conference Call

MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Wednesday, May 12, 2021 to discuss its first quarter 2021 financial results. A webcast of the conference call can be accessed at https://investors.medavail.com/. The webcast will be archived and available for replay for at least 90 days after the event.

About MedAvail

MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled pharmacy organization, providing turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. MedAvail helps patients to optimize drug adherence, resulting in better health outcomes. Learn more at www.medavail.com.

Forward Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “project,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding MedAvail’s business strategy and market opportunity; potential future revenue projections and expectations for growth; expansion plans; and customer partnerships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MedAvail’s management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of judicial proceedings to which MedAvail is, or may become a party; changes in competitive conditions prevailing in the healthcare sector; the availability of capital; and the other risks discussed under the heading “Risk Factors” in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021, and other documents MedAvail files with the SEC in the future. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and MedAvail specifically disclaims any obligation to update these forward-looking statements.

SOURCE MedAvail Holdings, Inc.

MEDAVAIL HOLDINGS, INC. Consolidated Condensed Statements of Operations (US Dollars in thousands, except share and per share data) (Unaudited)

	Three Months Ended March 31,
	2021			2020
Sales:
Pharmacy and hardware sales	$	3,781		$	1,402
Service sales	246			10
Total sales	4,027			1,412
Cost of sales:
Pharmacy and hardware cost of sales	3,526			1,385
Service cost of sales	181			47
Total cost of sales	3,707			1,432
Gross profit (loss)	320			(20		)
Pharmacy operations	1,911			1,089
General and administrative	6,515			3,500
Selling and marketing	1,377			703
Research and development	168			215
Operating loss	(9,651		)	(5,527		)
Other gain (loss), net	161			8
Interest income	40			8
Interest expense	(2		)	(179		)
Loss before income taxes	(9,452		)	(5,690		)
Income tax	—			—
Net loss	$	(9,452	)	$	(5,690	)
Net loss per share – basic and diluted	$	(0.29	)	$	(3.15	)
Weighted average shares outstanding – basic and diluted	32,439,953			1,808,105

MEDAVAIL HOLDINGS, INC. Consolidated Condensed Balance Sheets (US Dollars in thousands, except share amounts) (Unaudited)

	March 31,			December 31,
	2021			2020

Assets
Current assets:
Cash and cash equivalents	$	47,582		$	57,936
Restricted cash	61			60
Accounts receivable (net of allowance for doubtful accounts of $0.03 million for March 31, 2021, $0.04 million for December 31, 2020)	1,404			1,520
Inventories	3,119			2,817
Prepaid expenses and other current assets	1,455			1,534
Total current assets	53,621			63,867
Property, plant and equipment, net	3,782			3,795
Right-of-use assets	1,318			1,239
Other assets	203			203
Intangible assets	614			227
Total assets	$	59,538		$	69,331
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$	3,802		$	4,512
Short-term debt	2,000			2,161
Contract liability	262			275
Current portion of lease obligations	605			665
Total current liabilities	6,669			7,613
Long-term portion of lease obligations	788			651
Total liabilities	7,457			8,264
Stockholders’ deficit:
Common shares ($0.001 par value, 100,000,000 shares authorized, 31,939,898 and 31,816,020 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively)	32			32
Warrants	2,579			2,614
Additional paid-in-capital	214,125			213,624
Accumulated other comprehensive loss	(6,928		)	(6,928		)
Accumulated deficit	(157,727		)	(148,275		)
Total stockholders’ equity	52,081			61,067
Total liabilities, and stockholders’ equity	$	59,538		$	69,331

MEDAVAIL HOLDINGS, INC. Supplemental Financial Information – Segments (US Dollars in thousands, except share amounts) (Unaudited)

	Retail Pharmacy Services		Pharmacy Technology		Total
Three Months Ended March 31, 2021
Sales:
Pharmacy and hardware sales:
Retail pharmacy sales	$	3,418	$	—	$	3,418
Hardware	—		241		241
Subscription sales	—		122		122
Total pharmacy and hardware sales	3,418		363		3,781
Service sales:
Software integration	—		—		—
Software	—		33		33
Maintenance and support	—		31		31
Installation	—		16		16
Professional services and other	—		166		166
Total service sales	—		246		246
Total sales	3,418		609		4,027
Cost of sales	3,329		378		3,707
Gross profit	$	89	$	231	$	320

	Retail Pharmacy Services			Pharmacy Technology		Total
Three Months Ended March 31, 2020
Sales:
Pharmacy and hardware sales:
Retail pharmacy sales	$	1,297		$	—	$	1,297
Hardware	—			—		—
Subscription sales	—			105		105
Total pharmacy and hardware sales	1,297			105		1,402
Service sales:
Software integration	—			—		—
Software	—			—		—
Maintenance and support	—			10		10
Installation	—			—		—
Professional services and other	—			—		—
Total service sales	—			10		10
Total sales	1,297			115		1,412
Cost of sales	1,338			94		1,432
Gross profit	$	(41	)	$	21	$	(20	)

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 sales, adjusted operating expenses, EBITDA, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We define Adjusted Sales for a particular period as Sales excluding certain items that may not be indicative of our recurring core business operating results, such as adjustments to bad debt reserve or yearend accrual adjustments.

We define Adjusted EBITDA for a particular period as net (loss) income before interest, taxes, depreciation and amortization, and as further adjusted for merger-related expenses, stock-based compensation expense, payroll tax expense related to stock-based compensation, loss on extinguishment of debt, financing related expenses, loss on abandonment and impairment of operating lease assets, non-recurring inventory adjustments and other (income) expense, net.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results, like one-time transaction costs related to the reverse merger. 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 (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

MEDAVAIL HOLDINGS, INC. Unaudited Reconciliation of GAAP to Non-GAAP Measures (US Dollars in thousands)

	Three Months Ended March 31,
	2021			2020
Net loss	$	(9,452	)	$	(5,690	)
Adjustments to calculate EBITDA:
Interest expense		2			179
Income tax		—			—
Depreciation and amortization (1)		340			243
EBITDA		(9,110	)		(5,268	)
Adjustments as follows:
Share-based compensation expense		260			84
Adjusted EBITDA	$	(8,850	)	$	(5,184	)

(1) Excludes $162 thousand and $149 thousand in operating lease amortization for the three month periods ended March 31, 2021, and 2020, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005872/en/

Investor Relations

Caroline Paul

Gilmartin Group

[email protected]

KEYWORDS: United States North America Canada Arizona

INDUSTRY KEYWORDS: Health Technology Practice Management Software General Health Pharmaceutical

MEDIA:

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May 12, 2021 4:09 pm

Bumble Inc. Announces First Quarter 2021 Results

Revenue Increased to $171 million

Bumble App Revenue Increased to $113 million

Badoo App & Other Revenue Increased to $58 million

Total Paying Users Increased 30% to 2.8 million

AUSTIN, Texas, May 12, 2021 (GLOBE NEWSWIRE) — Bumble Inc. (NASDAQ: BMBL), the parent company of Bumble and Badoo, today reported financial results for the first quarter ended March 31, 2021.

“Our results and first quarter momentum validate the strength of our mission and our brand. We were able to combine our safety, mission and women-first narratives throughout the quarter in a manner that drove notable growth in user engagement and retention globally. Our brand and products are resonating worldwide, and we are inspired by the resilience of our customers who have demonstrated the power of human connection during the pandemic. Safety and accountability are at the foundation of our business and this mission-first approach has been key in advancing our position as leaders in the space. Our impressive results demonstrate that Bumble is more than our apps – our mission is powering a movement,” said Whitney Wolfe Herd, Founder and CEO of Bumble.

First Quarter 2021 Operational and Financial Results:

(All comparisons relative to the First Quarter 2020)

First quarter 2021 revenue increased year-over-year to $170.7 million. First quarter 2020 revenue was comprised of $79.1 million for the period from January 29, 2020 to March 31, 2020 and $40.0 million for the period from January 1, 2020 to January 28, 2020.
First quarter 2021 Bumble App Revenue increased year-over-year to $112.6 million. First quarter 2020 Bumble App Revenue was comprised of $46.7 million for the period from January 29, 2020 to March 31, 2020 and $23.3 million for the period from January 1, 2020 to January 28, 2020.
First quarter 2021 Badoo App and Other Revenue increased year-over-year to $58.1 million. First quarter 2020 Badoo App and Other Revenue was comprised of $32.5 million for the period from January 29, 2020 to March 31, 2020 and $16.7 million for the period from January 1, 2020 to January 28, 2020.
Total Paying Users increased 30.0% to 2.8 million, compared to 2.2 million.
Total ARPPU was $19.99, compared to $17.73.
Net earnings were $323.4 million, or 189.5% of revenue for the three months ended March 31, 2021, compared to Net loss of $55.8 million, or (70.5)% of revenue for the period from January 29, 2020 to March 31, 2020 and Net loss of $32.6 million, or (81.4)% of revenue for the period from January 1, 2020 to January 28, 2020.
Adjusted EBITDA was $46.1 million, or 27.0% of revenue for the three months ended March 31, 2021, compared to $12.7 million, or 16.1% of revenue for the period from January 29, 2020 to March 31, 2020 and $9.4 million, or 23.4% of revenue for the period from January 1, 2020 to January 28, 2020.

“Our first quarter results reflect significant growth in paying users as well as improved monetization, positioning us to raise full year 2021 guidance,” added Anu Subramanian, CFO of Bumble. “Our high flow through rates, efficient marketing strategy, and shared technology platform are driving operating leverage in the business. In the first quarter, we successfully completed our IPO, enabling us to pay down $200 million in debt and in further strengthening our balance sheet. We are making strategic investments in product and technology to continue growing our community and capitalizing on the large market opportunity in front of us.”

Key Operating Metrics:

(in thousands, except ARPPU)	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
*Key Operating Metrics*
Bumble App Paying Users		1,352.8		938.3
Badoo App and Other Paying Users		1,450.5		1,218.2
Total Paying Users		2,803.3		2,156.5
Bumble App Average Revenue per Paying User	$	27.75	$	24.84
Badoo App and Other Average Revenue per Paying User	$	12.76	$	12.26
Total Average Revenue per Paying User	$	19.99	$	17.73

Financial Outlook:

Bumble anticipates Revenue and Adjusted EBITDA for the second quarter ending June 30, 2021 and year ending December 31, 2021 to be:

Second quarter 2021:

Revenue in the range of $175 to $178 million
Adjusted EBITDA in the range of $42 to $44 million.

Full year 2021:

Revenue in the range of $724 to $734 million
Adjusted EBITDA in the range of $177 to $182 million

Actual results may differ materially from Bumble’s Financial Outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

With regards to the Non-GAAP Adjusted EBITDA outlook provided above, a reconciliation to GAAP net earnings (loss) has not been provided as the quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for certain legal, tax and regulatory reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.

Conference Call and Webcast Information

Bumble will host a conference call and live webcast to discuss its first quarter 2021 financial results at 4:30 p.m. Eastern Time today, May 12, 2021. To listen to the live conference call, please dial toll free (833) 362-0206 or (914) 987-7675, access code 3897705, approximately 10 minutes prior to the start of the call. A webcast of the call and other information related to the call will be accessible on the Investors section of the Company’s website at https://ir.bumble.com. A webcast replay will be available approximately two hours after the conclusion of the live event.

Definitions

Bumble App Average Revenue per Paying User is calculated based on Bumble App Revenue in any measurement period, divided by Bumble App Paying Users in such period divided by the number of months in the period.

Bumble App Paying User is a user that has purchased or renewed a Bumble subscription plan and/or made an in-app purchase on the Bumble app in a given month. We calculate Bumble App Paying Users as a monthly average, by counting the number of Bumble App Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Badoo App and Other Average Revenue per Paying User is calculated based on Badoo App and Other Revenue in any measurement period, excluding any revenue generated from advertising and partnerships or affiliates, divided by Badoo App and Other Paying Users in such period divided by the number of months in the period.

Badoo App and Other Paying User is a user that has purchased or renewed a subscription plan and/or made an in-app purchase on the Badoo app in a given month (or made a purchase on one of our other apps that we owned and operated in a given month, or purchase on other third-party apps that used our technology in the relevant period). We calculate Badoo App and Other Paying Users as a monthly average, by counting the number of Badoo App and Other Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Predecessor refers to Worldwide Vision Limited and its consolidated subsidiaries. Worldwide Vision Limited operated the trade of Bumble Inc. prior to the consummation of the acquisition (the “Sponsor Acquisition”) on January 29, 2020 of a majority stake in Worldwide Vision Limited by a group of investment funds managed by The Blackstone Group Inc.

Successor refers to Buzz Holdings L.P. and its consolidated subsidiaries from the Sponsor Acquisition to the initial public offering on February 16, 2021 and to Bumble Inc. and its consolidated subsidiaries after the initial public offering.

Non-GAAP Financial Measures

We report our financial results in accordance with GAAP, however, management believes that certain non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. These measures include: Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Conversion. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide visibility to the underlying continuing operating performance by excluding the impact of certain expenses, including income tax provision, interest (income) expense, depreciation and amortization, stock-based compensation expense, foreign exchange loss (gain), changes in fair value of contingent earn-out liability, interest rate swaps and external investments, transaction costs and one-time litigation costs, as management does not believe these expenses are representative of our core earnings. In addition to Adjusted EBITDA and Adjusted EBITDA Margin, we believe Free Cash Flow and Free Cash Flow Conversion provide useful information regarding how cash provided by operating activities compares to the capital expenditures required to maintain and grow our business, and our available liquidity, after funding such capital expenditures, to service our debt, fund strategic initiatives and strengthen our balance sheet, as well as our ability to convert our earnings to cash. Additionally, we believe such metrics are widely used by investors, securities analysis, ratings agencies and other parties in evaluating liquidity and debt-service capabilities. We calculate Free Cash Flow and Free Cash Flow Conversion using methodologies that we believe can provide useful supplemental information to help investors better understand underlying trends in our business.

Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is defined as net earnings (loss) excluding income tax (benefit) provision, interest expense (income), depreciation and amortization, stock-based compensation expense, foreign exchange loss (gain), changes in fair value of contingent earn-out liability, interest rate swaps and external investments, transaction costs and one-time litigation costs.

Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenue.

Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures.

Free Cash Flow Conversion represents Free Cash Flow as a percentage of Adjusted EBITDA.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements reflecting our current views with respect to, among other things, our operations, our financial performance, our industry, the impact of the Coronavirus Disease 2019 (“COVID-19”) on our business and other non-historical statements, including without limitation the statements in the “Financial Outlook” section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believe(s),” “expect(s),” “potential,” “continue(s),” “may,” “will,” “should,” “could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,” “plan(s),” “estimate(s),” “anticipates,” “projection,” “will likely result” and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include, but are not limited to, the following:

our ability to retain existing users or attract new users and to convert users to paying users
competition and changes in the competitive landscape of our market
our ability to distribute our dating products through third parties, such as Apple App Store or Google Play Store, and offset related fees
the impact of data security breaches or cyber attacks on our systems and the costs of remediation related to any such incidents
the continued development and upgrading of our technology platform and our ability to adapt to rapid technological developments and changes in a timely and cost-effective manner
our ability to obtain, maintain, protect and enforce intellectual property rights and successfully defend against claims of infringement, misappropriation or other violations of third-party intellectual property
our ability to comply with complex and evolving U.S. and international laws and regulations relating to our business, including data privacy laws
foreign currency exchange rate fluctuations
risks relating to certain of our international operations, including successful expansion into new markets
affiliates of The Blackstone Group Inc.’s (“Blackstone”) and our Founder’s control of us
the outsized voting rights of affiliates of Blackstone and our Founder
the inability to attract hire and retain a highly qualified and diverse workforce, or maintain our corporate culture
changes in business or macroeconomic conditions, including the impact of COVID-19 (and other widespread health emergencies or pandemics) and measures taken in response, lower consumer confidence in our business or in the online dating industry generally, recessionary conditions, increased unemployment rates, stagnant or declining wages, political unrest, armed conflicts or natural disasters

For additional information on these and other factors that could cause Bumble’s actual results to differ materially from expected results, please see our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2021, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Bumble

Bumble Inc. is the parent company of Bumble and Badoo, two of the world’s highest-grossing dating apps with millions of users worldwide. The Bumble platform enables people to connect and build equitable and healthy relationships. Founded by CEO Whitney Wolfe Herd in 2014, the Bumble app is one of the first dating apps built with women at the center, and the Badoo app, which was founded in 2006, is one of the pioneers of web and mobile dating products. Bumble currently employs over 700 people in offices in Austin, Barcelona, London, and Moscow.

For more information about Bumble, please visit www.bumble.com and follow @Bumble on social platforms.

Source: Bumble Inc.

Investor Contact

[email protected]

Media Contact

[email protected]

Bumble Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share and par value amounts)

	(Unaudited) March 31, 2021			December 31, 2020
ASSETS
Cash and cash equivalents	$	246,002		$	128,029
Accounts receivable		62,168			41,595
Other current assets		86,342			81,387
Total current assets		394,512			251,011
Right-of-use assets		10,616			11,711
Lease receivable		1,099			1,069
Property and equipment, net		16,449			16,833
Goodwill		1,540,112			1,540,915
Intangible assets, net		1,788,250			1,812,410
Deferred tax assets, net		14,809			—
Other noncurrent assets		4,267			3,319
Total assets	$	3,770,114		$	3,637,268
LIABILITIES AND BUMBLE INC. SHAREHOLDERS’ / BUZZ HOLDINGS L.P. OWNERS’ EQUITY
Accounts payable	$	15,047		$	23,741
Deferred revenue		33,370			31,269
Accrued expenses and other current liabilities		142,652			180,986
Current portion of long-term debt, net		9,996			5,338
Total current liabilities		201,065			241,334
Long-term debt, net		619,542			820,876
Deferred tax liabilities, net		—			428,087
Tax receivable agreement liability		356,755			—
Other liabilities		118,546			62,190
Total liabilities	$	1,295,908		$	1,552,487
Commitments and contingencies
Bumble Inc. Shareholders’ / Buzz Holdings L.P. Owners’ Equity:
Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 140,142,374 shares issued; and 115,343,526 shares outstanding as of March 31, 2021)		1,401			—
Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 shares issued and outstanding as of March 31, 2021)		0			—
Preferred stock; par value $0.01; authorized 600,000,000 shares; no shares issued and outstanding as of March 31, 2021		—			—
Limited Partners’ interest		—			1,903,121
Additional paid-in capital		2,259,381		—
Treasury stock		(1,018,365	)		—
Accumulated deficit		(28,845	)		—
Accumulated other comprehensive income		178,672			180,852
Total Bumble Inc. shareholders’ / Buzz Holdings L.P. owners’ equity		1,392,244			2,083,973
Noncontrolling interests		1,081,962			808
Total shareholders’ / owners’ equity		2,474,206			2,084,781
Total liabilities and shareholders’ / owners’ equity	$	3,770,114		$	3,637,268

Bumble Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share / unit data)

	Successor						Predecessor
	Three Months Ended March 31, 2021			Period from January 29, through March 31, 2020			Period from January 1, through January 28, 2020
Revenue	$	170,713		$	79,145		$	39,990
Operating costs and expenses:
Cost of revenue		47,747			21,627			10,790
Selling and marketing expense		46,838			27,287			11,157
General and administrative expense		126,524			60,034			44,907
Product development expense		35,045			6,945			4,087
Depreciation and amortization expense		26,955			16,313			408
Total operating costs and expenses		283,109			132,206			71,349
Operating loss		(112,396	)		(53,061	)		(31,359	)
Interest (expense) income		(7,729	)		(4,539	)		50
Other income (expense), net		6,991			612			(882	)
Loss before tax		(113,134	)		(56,988	)		(32,191	)
Income tax benefit (provision)		436,576			1,179			(365	)
Net earnings (loss)		323,442			(55,809	)		(32,556	)
Net (loss) earnings attributable to noncontrolling interests		(18,348	)		(48	)		1,917
Net earnings (loss) attributable to Bumble Inc. shareholders / Buzz Holdings L.P. owners	$	341,790		$	(55,761	)	$	(34,473	)
Net earnings (loss) per share / unit attributable to Bumble Inc. shareholders / Buzz Holdings L.P. owners
Basic earnings (loss) per share / unit	$	1.74		$	(0.02	)
Diluted earnings (loss) per share / unit	$	1.69		$	(0.02	)

Bumble Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

	Successor						Predecessor
	Three Months Ended March 31, 2021			Period from January 29, through March 31, 2020			Period from January 1, through January 28, 2020
Cash flows from operating activities:
Net earnings (loss)	$	323,442		$	(55,809	)	$	(32,556	)
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Depreciation and amortization		26,955			16,313			408
Changes in fair value of interest rate swaps		(2,944	)		—			—
Changes in fair value of contingent consideration		71,954			—			—
Deferred income tax		(441,682	)		(517	)		26
Stock-based compensation expense		45,823			1,420			4,156
Net foreign exchange difference		(2,307	)		6,331			(198	)
Other, net		2,719			(255	)		(195	)
Changes in assets and liabilities:
Accounts receivable		(21,075	)		2,749			(17,599	)
Other current assets		(7,234	)		(17,803	)		(2,175	)
Accounts payable		(9,194	)		(12,639	)		12,984
Deferred revenue		2,101			8,078			289
Legal liabilities		(30,243	)		(2,587	)		(521	)
Accrued expenses and other current liabilities		(4,410	)		(2,018	)		32,075
Other, net		513			(865	)		—
Net cash used in operating activities		(45,582	)		(57,602	)		(3,306	)
Cash flows from investing activities:
Capital expenditures		(2,712	)		(921	)		(1,045	)
Acquisition of business, net of cash acquired		—			(2,801,262	)		—
Other, net		(31	)		(73	)		16
Net cash used in investing activities		(2,743	)		(2,802,256	)		(1,029	)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock sold in initial public offering, net of offering costs		2,358,371			—			—
Purchase of Class A Common Stock in the initial public offering		(1,018,365	)		—			—
Purchase of Common Units from Pre-IPO Common Unitholders in the initial public offering		(973,289	)		—			—
Proceeds from repayments of loans to related companies		—			41,929
Debt issuance costs		—			(16,281	)		—
Limited Partners’ interest		—			2,334,233			—
Proceeds from term loan		—			575,000			—
Repayment of term loan		(200,000	)		—			—
Net cash provided by financing activities		166,717			2,934,881			—
Effects of exchange rate changes on cash and cash equivalents		(162	)		(7,715	)		813
Net increase (decrease) in cash and cash equivalents		118,230			67,308			(3,522	)
Cash and cash equivalents, beginning of the period		128,029			53,669			57,449
Cash and cash equivalents and restricted cash, end of the period		246,259			120,977			53,927
Less restricted cash		257			258			—
Cash and cash equivalents, end of the period	$	246,002		$	120,719		$	53,927

Reconciliation of GAAP to NON-GAAP Measures

Reconciliation of Net Earnings (Loss) to Adjusted EBITDA

	Successor						Predecessor
In thousands, except percentages	Three Months Ended March 31, 2021			Period from January 29, through March 31, 2020			Period from January 1, 2020 through January 28, 2020
Net earnings (loss)	$	323,442		$	(55,809	)	$	(32,556	)
Add back:
Income tax (benefit) provision		(436,576	)		(1,179	)		365
Interest expense (income)		7,729			4,539			(50	)
Depreciation and amortization		26,955			16,313			408
Stock-based compensation expense		45,823			1,420			336
Litigation costs, net of insurance proceeds⁽¹⁾		234			1,000			—
Foreign exchange (gain) loss ⁽²⁾		(3,843	)		(647	)		523
Changes in fair value of interest rate swaps⁽³⁾		(2,944	)		—			—
Transaction costs⁽⁴⁾		13,502			47,097			40,345
Changes in fair value of contingent earn-out liability		71,954			—			—
Changes in fair value of external investments		(196	)		—			—
Adjusted EBITDA	$	46,080		$	12,734		$	9,371
Net earnings (loss) margin⁽⁵⁾		189.5	%		(70.5	)%		(81.4	)%
Adjusted EBITDA Margin		27.0	%		16.1	%		23.4	%

⁽¹⁾ Represents certain litigation costs and insurance proceeds associated with pending litigations or settlements of litigation.
⁽²⁾ Represents foreign exchange (gain) loss due to foreign currency transactions.
⁽³⁾ Represents fair value gain on interest rate swaps.
⁽⁴⁾ Represents transaction costs and professional service fees related to the Sponsor Acquisition and the initial public offering.
⁽⁵⁾ Includes a $441.5 million tax benefit related to the reversal of a deferred tax liability due to a restructuring of the Company’s international operations.

Reconciliation of Net Cash Used In Operating Activities to Free Cash Flow

	Successor						Predecessor
In thousands, except percentages	Three Months Ended March 31, 2021			Period from January 29, through March 31, 2020			Period from January 1, 2020 through January 28, 2020
Net cash used in operating activities	$	(45,582	)	$	(57,602	)	$	(3,306	)
Less:
Capital expenditures		(2,712	)		(921	)		(1,045	)
Free Cash Flow	$	(48,294	)	$	(58,523	)	$	(4,351	)
Operating Cash Flow Conversion		(14.1	)%		103.2	%		10.2	%
Free Cash Flow Conversion		(104.8	)%		(459.6	)%		(46.4	)%

Supplementary Information

Stock-based compensation expense

	Successor				Predecessor
(in thousands)	Three Months Ended March 31, 2021		Period from January 29, through March 31, 2020		Period from January 1, through January 28, 2020
Cost of revenue	$	1,607	$	—	$	—
Selling and marketing expense		5,141		—		75
General and administrative expense		19,908		1,420		3,997
Product development expense		19,167		—		84
Total stock-based compensation expense	$	45,823	$	1,420	$	4,156

May 12, 2021 4:09 pm

Fossil Group, Inc. Reports First Quarter 2021 Financial Results

Achieves New World Fossil 2.0 Program Financial Targets; Increases Full Year 2021 Outlook

RICHARDSON, Texas, May 12, 2021 (GLOBE NEWSWIRE) — Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the first quarter ended April 3, 2021.

First Quarter Summary

Worldwide net sales of $363 million decreased 7% on a reported basis and 10% in constant currency. Topline performance was better than expected due to improving consumer demand in the U.S., as well as continued strength in Mainland China and the Company’s digital channels globally.
On a constant currency basis, digital sales grew 40% compared to the prior year, led by the Company’s owned e-commerce websites, and represented 41% of worldwide net sales.
Gross margin was 50.3% compared to 35.9% in the first quarter of 2020, primarily reflecting reduced inventory valuation adjustments and minimum licensed product royalties, which were elevated in 2020 due to the onset of the COVID-19 global pandemic.
The Company reduced operating expenses by $75 million, or 27%, on a year-over-year basis, including $53 million in cost reduction under its New World Fossil 2.0 – Transform to Grow program (“NWF 2.0”).
Operating loss of $17 million compared to an operating loss of $134 million a year ago, primarily reflecting gross margin expansion and cost reduction benefits.
Cash and cash equivalents of $247 million, and total debt of $195 million as of April 3, 2021.

“We are pleased to start the year with better than expected sales performance, which reflects improving consumer demand in the U.S., ongoing momentum in Mainland China and continued strength in our digital channels globally,” said Kosta Kartsotis, Chairman and CEO. “We also delivered solid gross margins and cost control, which resulted in improved profitability versus a year ago. Notably, we captured further organizational efficiencies in the first quarter, allowing us to capture more than $50 million in cost savings and achieve the financial targets under our $250 million New World Fossil 2.0 program earlier than anticipated.

While the COVID pandemic continues to disrupt certain markets, we are encouraged by our outlook in large markets like the U.S. and Mainland China, which are benefiting from the execution of our digital strategy. More broadly, we are pleased with our success in transforming the business model, which has strengthened our digital mix, significantly improved our cost structure and positions us to drive increased growth and profitability over the long term.”

First Quarter 2021 Operating Results

Worldwide net sales for the 13-week quarter ended April 3, 2021 totaled $363.0 million, a decrease of 7% on a reported basis and 10% in constant currency compared to $390.7 million during the 14-week quarter ended April 4, 2020. The year-over-year decline was primarily due to COVID-19 related traffic declines in both our own stores and wholesale doors and 12% fewer company-owned stores. Partly offsetting these sales declines was 40% growth in digital channels, primarily driven by the Company’s owned e-commerce websites. The following table provides a summary of net sales performance, on both an as reported and constant currency basis, for the first quarter of 2021 compared to the 2020 first quarter (in millions, except percentage data).

	First Quarter
	2021		2020		Growth (Decline)
	Amounts as Reported		Amounts as Reported		Dollars as Reported (1)			Constant Currency Dollars (2)			Percentage as Reported (1)			Percentage Constant Currency (2)
Americas	$	153	$	153	$	—		$	(1	)	—		%	(1	)	%
Europe	109		128		(19		)	(26		)	(15	)		(21	)
Asia	99		106		(7		)	(12		)	(7	)		(11	)
Corporate	2		4		(2		)	(1		)	(21	)		(24	)
Total net sales	$	363	$	391	$	(28	)	$	(40	)	(7	)	%	(10	)	%

Watches	$	292	$	310	$	(18	)	$	(28	)	(6	)	%	(9	)	%
Leathers	34		47		(13		)	(14		)	(28	)		(30	)
Jewelry	30		23		7			5			29			22
Other	7		11		(4		)	(3		)	(28	)		(30	)
Total net sales	$	363	$	391	$	(28	)	$	(40	)	(7	)	%	(10	)	%

(1) Reported GAAP amounts include impacts from currency.
(2) Eliminates the effect of currency changes in fiscal 2021 to give investors a better understanding of the underlying trends within the business. See constant currency financial information at the end of this release for more information.

Gross profit totaled $182.6 million compared to $140.4 million in the first quarter of 2020, as the decrease in sales was more than offset by an improved gross margin rate, which increased 1,440 basis points to 50.3%. The year-over-year increase primarily reflects reduced levels of inventory valuation adjustments and minimum licensed product royalties, which were elevated due to the onset of the COVID-19 global pandemic. Also contributing to the improved margin rate were favorable changes in channel, product and region mix and favorable currency impacts of approximately 110 basis points, partially offset by higher freight costs.

Operating expenses totaled $199.4 million compared to $274.7 million a year ago. Operating expenses in the first quarter of 2021 included $7.5 million of restructuring costs, primarily related to employee costs, while operating expenses in the first quarter of 2020 included $9.4 million of restructuring costs. First quarter 2021 selling, general and administrative expenses decreased on a year-over-year basis, reflecting lower compensation and marketing costs and 12% fewer Company stores compared to a year ago. The 2021 first quarter included other long-lived asset impairments of $4.5 million as compared to $17.1 million in the 2020 first quarter, reflecting a reduction in retail store impairment in the current year.

First quarter 2021 operating loss was $16.8 million compared to an operating loss of $134.3 million in the first quarter of 2020. Net loss totaled $24.4 million, or $0.47 per diluted share, compared to a net loss of $85.6 million, or $1.69 per diluted share, in the first quarter of 2020. Per share data included restructuring charges of $0.12 per diluted share in the first quarter of 2021 and $0.15 per diluted share in the first quarter of 2020. During the first quarter of 2021, currencies, including both the translation impact on operating earnings and the impact of foreign currency hedging contracts, favorably affected income per diluted share by approximately $0.18.

New World Fossil 2.0 – Transform to Grow Initiative

In the first quarter of 2021, the Company achieved the financial targets under its multi-year $250 million NWF 2.0 program. The program, initiated in 2019, was designed to deliver gross margin benefits and operating expense reductions totaling $200 million over the three-year period from 2019 to 2021. As a result of the unprecedented impact of COVID-19, in 2020 the Company expanded its NWF 2.0 program to $250 million to include additional organizational efficiencies and accelerate its digital initiatives. Under the program, the Company generated $50 million in expense savings in fiscal 2019 and $175 million in expense savings in 2020. In the first quarter of 2021, the Company achieved $53 million in expense savings, reaching its overall program financial targets.

Balance Sheet Summary

As of April 3, 2021, the Company had total liquidity of $250 million, comprised of $247 million of cash and cash equivalents and $3 million of availability under its revolving credit facility. Total debt was $195 million, including $138 million under its term credit agreement. Inventories at the end of the first quarter of 2021 totaled $322 million, a decrease of 27% versus a year ago, primarily reflecting proactive management of inbound receipts to align with consumer demand.

Outlook

For fiscal year 2021, the Company now expects worldwide net sales growth of approximately 12% to 16% as compared to fiscal 2020 and Adjusted EBITDA⁽¹⁾ margin of approximately 5% to 7%. For the 13-week quarter ending July 3, 2021, worldwide net sales are expected to increase in the range of 50% to 55% compared to the 13-week quarter ended July 4, 2020, primarily reflecting the current level of pandemic restrictions in key markets compared to last year.

(1) A reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to a corresponding GAAP measure is not available on a forwardlooking basis without unreasonable efforts due to the high variability and low visibility of certain income and expense items that are excluded in calculating Adjusted EBITDA.

Safe Harbor

Certain statements contained herein that are not historical facts, including NWF 2.0 operating expense reductions, the success of our connected accessories, future financial guidance as well as estimated impacts of COVID-19, tariffs, the Tax Cuts and Jobs Act, foreign currency translation, amortization expense, foreign tax credits, non-cash impairments and restructuring charges, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: the effect of worldwide economic conditions; the impact of COVID-19; significant changes in consumer spending patterns or preferences; interruptions or delays in the supply of key components; acts of war or acts of terrorism; loss of key facilities; data breach or information systems disruptions; changes in foreign currency valuations in relation to the U.S. dollar; lower levels of consumer spending resulting from a general economic downturn or generally reduced shopping activity caused by public safety or consumer confidence concerns; the performance of our products within the prevailing retail environment; customer acceptance of both new designs and newly-introduced product lines; changes in the mix of product sales; our ability to maintain proper inventory levels; financial difficulties encountered by customers; the effects of vigorous competition in the markets in which we operate; compliance with debt covenants and other contractual provisions; risks related to the success of our business strategy and restructuring programs; the termination or non-renewal of material licenses; risks related to foreign operations and manufacturing; changes in the costs of materials, labor and advertising; government regulation and tariffs; our ability to secure and protect trademarks and other intellectual property rights; levels of traffic to and management of our retail stores; and the outcome of current and possible future litigation, as well as the risks and uncertainties set forth in the Company’s most recent Annual Report on Form 10-K/A and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”). These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Readers of this release should consider these factors in evaluating, and are cautioned not to place undue reliance on, the forward-looking statements contained herein. The Company assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

About Fossil Group, Inc.

Fossil Group, Inc. is a global design, marketing, distribution and innovation company specializing in lifestyle accessories. Under a diverse portfolio of owned and licensed brands, our offerings include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts and sunglasses. We are committed to delivering the best in design and innovation across our owned brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, Diesel, DKNY, Emporio Armani, kate spade new york, Michael Kors, PUMA and Tory Burch. We bring each brand story to life through an extensive distribution network across numerous geographies, categories and channels. Certain press release and SEC filing information concerning the Company is also available at www.fossilgroup.com.

Investor Relations:	Christine Greany
	The Blueshirt Group
	(858) 722-7815
	[email protected]

Consolidated Income Statement Data	For the 13 Weeks Ended				For the 14 Weeks Ended
($ in millions, except per share data):	April 3, 2021				April 4, 2020
Net sales	$	363.0			$	390.7
Cost of sales	180.4				250.3
Gross profit	182.6				140.4
Gross margin	50.3			%	35.9			%
Operating expenses:
Selling, general and administrative expenses	187.4				245.7
Trade name impairment	—				2.5
Other long-lived asset impairments	4.5				17.1
Restructuring charges	7.5				9.4
Total operating expenses	$	199.4			$	274.7
Total operating expenses (% of net sales)	54.9			%	70.3			%
Operating income (loss)	(16.8		)		(134.3		)
Operating margin	(4.6		)	%	(34.4		)	%
Interest expense	7.3				7.5
Other income (expense) – net	1.9				(7.3		)
Income (loss) before income taxes	(22.2		)		(149.1		)
Provision for income taxes	2.1				(63.7		)
Less: Net income attributable to noncontrolling interest	0.1				0.2
Net income attributable to Fossil Group, Inc.	$	(24.4	)		$	(85.6	)
Earnings per share:
Basic	$	(0.47	)		$	(1.69	)
Diluted	$	(0.47	)		$	(1.69	)
Weighted average common shares outstanding:
Basic	51.5				50.6
Diluted	51.5				50.6

Consolidated Balance Sheet Data ($ in millions):	April 3, 2021		April 4, 2020
Assets:
Cash and cash equivalents	$	246.7	$	245.4
Accounts receivable – net	175.5		153.4
Inventories	322.5		439.7
Other current assets	202.4		128.6
Total current assets	$	947.1	$	967.1
Property, plant and equipment – net	$	104.9	$	138.7
Operating lease right-of-use assets	211.9		269.1
Intangible and other assets – net	85.2		157.7
Total long-term assets	$	402.0	$	565.5
Total assets	$	1,349.1	$	1,532.6

Liabilities and stockholders’ equity:
Accounts payable, accrued expenses and other current liabilities	$	469.3	$	442.1
Short-term debt	37.9		21.1
Total current liabilities	$	507.2	$	463.2
Long-term debt	$	157.2	$	298.5
Long-term operating lease liabilities	217.5		281.1
Other long-term liabilities	58.4		73.4
Total long-term liabilities	$	433.1	$	653.0
Stockholders’ equity	408.8		$	416.4
Total liabilities and stockholders’ equity	$	1,349.1	$	1,532.6

Constant Currency Financial Information

The following table presents the Company’s business segment and product net sales on a constant currency basis which are non-GAAP financial measures. To calculate net sales on a constant currency basis, net sales for the current fiscal year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average rates during the comparable period of the prior fiscal year. The Company presents constant currency information to provide investors with a basis to evaluate how its underlying business performed excluding the effects of foreign currency exchange rate fluctuations. The constant currency financial information presented herein should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

	Net Sales
	For the 13 weeks ended April 3, 2021							For the 14 weeks ended April 4, 2020
($ in millions)	As Reported		Impact of Foreign Currency Exchange Rates			Constant Currency		As Reported
Segment:
Americas	$	152.5	$	(0.6	)	$	151.9	$	152.9
Europe	109.2		(7.5		)	101.7		128.2
Asia	98.6		(4.4		)	94.2		106.2
Corporate	2.7		(0.1		)	2.6		3.4
Total net sales	$	363.0	$	(12.6	)	$	350.4	$	390.7

Product Categories:
Watches	$	291.6	$	(9.8	)	$	281.8	$	309.9
Leathers	34.1		(1.1		)	33.0		47.3
Jewelry	29.9		(1.5		)	28.4		23.2
Other	7.4		(0.2		)	7.2		10.3
Total net sales	$	363.0	$	(12.6	)	$	350.4	$	390.7

Adjusted operating income (loss) and Adjusted EBITDA

Adjusted operating income (loss) and Adjusted EBITDA are non-GAAP financial measures. We define Adjusted operating income (loss) as operating income (loss) before impairment expense and restructuring expense. We define Adjusted EBITDA as our net income (loss) before the impact of income tax expense (benefit), plus interest expense, amortization and depreciation, impairment expense, other non-cash charges, stock-based compensation expense, and restructuring expense minus interest income. We have included Adjusted operating income (loss) and Adjusted EBITDA herein because they are widely used by investors for valuation and for comparing our financial performance with the performance of our competitors. We also use both non-GAAP financial measures to monitor and compare the financial performance of our operations. Our presentation of Adjusting operating income (loss) and Adjusted EBITDA may not be comparable to similarly titled measures other companies report. Adjusted operating income (loss) and Adjusted EBITDA are not intended to be used as alternatives to any measure of our performance in accordance with GAAP.

The following table reconciles Adjusted operating income (loss) to the most directly comparable GAAP financial measure, which is operating income (loss).


($ in millions):	Operating income (loss)				Less: Trade name impairments		Less: Other long-lived asset impairment		Less: Restructuring expenses		Adjusted operating income (loss)

For the 13 weeks ended April 3, 2021	$(16.8			)	$0.0		$4.5		$7.5		$(4.8			)
For the 14 weeks ended April 4, 2020		(134.3	)			2.5		17.1		9.4		(105.3	)

The following table reconciles Adjusted EBITDA to the most directly comparable GAAP financial measure, which is income (loss) before income taxes. Certain line items presented in the tables below, when aggregated, may not foot due to rounding.

	Fiscal 2020 ⁽¹⁾							Fiscal 2021
($ in millions):	Q2			Q3		Q4		Q1			Total
Income (loss) before income taxes	$	(43.8	)	$	9.5	$	11.5	$	(22.2	)	$	(45.0	)
Plus:
Interest expense	7.9			8.0		8.4		7.3			31.6
Amortization and depreciation	10.7			10.3		10.0		8.9			39.9
Impairment expense	3.4			4.6		6.5		4.5			19.0
Other non-cash charges	2.1			2.0		1.0		(0.2		)	4.9
Stock-based compensation	2.9			3.2		1.9		1.8			9.8
Restructuring expense	10.5			5.7		10.9		7.5			34.6
Less:
Interest Income	0.1			0.1		0.2		0.1			0.5
Adjusted EBITDA	$	(6.4	)	$	43.3	$	50.0	$	7.5		$	94.3

(1) Prior period amounts have been adjusted to conform to the current period presentation.

Store Count Information

	April 3, 2021				April 4, 2020
	Americas	Europe	Asia	Total	Americas	Europe	Asia	Total
Full price accessory	71	59	54	184	82	78	57	217
Outlets	99	75	31	205	114	74	35	223
Full priced multi-brand	—	3	3	6	—	4	3	7
Total stores	170	137	88	395	196	156	95	447

END OF RELEASE

May 12, 2021 4:09 pm

Spruce Biosciences Reports First Quarter 2021 Financial Results and Provides Corporate Updates

Spruce Biosciences Reports First Quarter 2021 Financial Results and Provides Corporate Updates

Presentation of Phase 2 Data of Tildacerfont at 23^rd Annual European Congress of Endocrinology

Cash and Cash Equivalents of $148.6 million

SAN FRANCISCO–(BUSINESS WIRE)–
Spruce Biosciences, Inc. (Nasdaq: SPRB), a late-stage biopharmaceutical company focused on developing and commercializing novel therapies for rare endocrine disorders with significant unmet medical need, today reported financial results for the first quarter ended March 31, 2021 and provided a corporate update.

“Throughout the first quarter of 2021, Spruce Biosciences made substantial progress in our efforts to advance new treatment options for people living with rare endocrine disorders and to maximize the potential of tildacerfont as a therapeutic to treat people living with classic congenital adrenal hyperplasia, or CAH, and other diseases impacted by ACTH,” said Richard King, Chief Executive Officer of Spruce Biosciences. “We continue to advance enrollment into our late-stage CAHmelia program in adult classic CAH and remain encouraged with the level of patient interest registered with our study investigators. Looking ahead, we remain on track to initiate our Phase 2 program in children with classic CAH in the second half of this year. In the pediatric classic CAH population, the imbalance between excess adrenal androgens and glucocorticoids can lead to irreversible impacts on childhood development. Tildacerfont has the potential to ease the disease and steroid burden for children, which may enable normal growth progression through childhood and adolescence.”

Corporate Highlights

Presentation of Phase 2 Data of Tildacerfont at European Society of Endocrinology’s 23^rd Annual European Congress of Endocrinology (ECE 2021): On May 24, 2021, Richard Auchus, MD, PhD, Professor of Internal Medicine and Pharmacology, University of Michigan, Ann Arbor, will present data from the company’s Phase 2 program of tildacerfont in classic CAH at ECE 2021. The presentation will highlight data from the company’s SPR001-202 clinical trial, which demonstrated the ability of tildacerfont to reduce and normalize key disease biomarkers over a 12-week period. Normalization of highly elevated hormones in classic CAH patients over a 12-week trial and without increases to daily steroid doses, to the company’s knowledge, has not been publicly reported with any other investigational product candidate to date.
Cash and Cash Equivalents of $148.6 Million: Based on the company’s current operating plan, the company is well capitalized to advance its pipeline through key milestones, including primary data readout from its CAHmelia studies and initiation of Phase 2 programs in pediatric classic CAH and a rare form of polycystic ovary syndrome (PCOS).

Anticipated Upcoming Milestones

Submission of an Investigational New Drug (IND) application with the U.S. Food and Drug Administration for PCOS in the first half of 2021, and initiation of a Phase 2 proof-of-concept clinical trial in the second half of 2021
Initiation of a Phase 2 clinical program in pediatric classic CAH in the second half of 2021
Results from CAHmelia-203 in adult classic CAH patients with poor disease control the first half of 2022
Results from CAHmelia-204 in adult classic CAH patients with good disease control in the second half of 2022

First Quarter 2021 Financial Results

Cash and Cash Equivalents: Cash and cash equivalents as of March 31, 2021, were $148.6 million.

Research and Development (R&D) Expenses: R&D expenses for the first quarter ended March 31, 2021 were $6.7 million compared to $4.6 million for the same period in 2020. The overall increase in R&D expenses was primarily related to the advancement of tildacerfont into late-stage clinical development.

General and Administrative (G&A) Expenses: G&A expenses for the first quarter ended March 31, 2021 were $3.1 million compared to $0.5 million for the same period in 2020. The overall increase in G&A expenses was primarily driven by an increase in costs related to operation as a public company.

Total Operating Expenses: Total operating expensesfor the quarter ended March 31, 2021 were $9.8 million compared to $5.1 million for the same period in 2020. Stock-based compensation for the first quarter ended March 31, 2021 was $1.1 million. When excluding depreciation and stock-based compensation, total operating expenses for the quarter ended March 31, 2021 were $8.7 million.

Net Loss: Net loss for the three months ended March 31, 2021 was $9.9 million compared to $5.1 million for the same period in 2020.

About Spruce Biosciences

Spruce Biosciences is a late-stage biopharmaceutical company focused on developing and commercializing novel therapies for rare endocrine disorders with significant unmet need. Spruce is initially developing its wholly-owned product candidate, tildacerfont, as the potential first non-steroidal therapy for patients suffering from classic congenital adrenal hyperplasia (CAH). Classic CAH is a serious and life-threatening disease with no known novel therapies approved in approximately 50 years. Spruce is also developing tildacerfont for women suffering from a rare form of polycystic ovary syndrome (PCOS) with primary adrenal androgen excess, representing 3-5% of females with PCOS (estimated to be 150,000 to 200,000 patients in the United States). To learn more, visit www.sprucebiosciences.com and follow us on Twitter @Spruce_Bio, LinkedIn, Facebook and YouTube.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, the results, conduct, progress and timing of Spruce’s clinical trials, the regulatory approval path for tildacerfont, the strength of Spruce’s balance sheet and the adequacy of Spruce’s cash position. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “plans”, “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Spruce’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with Spruce’s business in general, the impact of the COVID-19 pandemic, and the other risks described in Spruce’s filings with the U.S. Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Spruce undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Use of Non-GAAP Financial Measures

Spruce has presented certain non-GAAP financial measures in this release. This release and the reconciliation tables included herein include non-GAAP total operating expenses and non-GAAP G&A expenses, both of which exclude depreciation and stock-based compensation. Spruce excludes depreciation and stock-based compensation because management believes the exclusion of these items is helpful to investors to evaluate Spruce’s recurring operational performance. Spruce management uses these non-GAAP financial measures to monitor and evaluate its operating results and trends on an on-going basis, and internally for operating, budgeting and financial planning purposes. The non-GAAP financial 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 results.

SPRUCE BIOSCIENCES, INC.

CONDENSED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

March 31,

2021

December 31,

2020

ASSETS

Current assets:

Cash and cash equivalents

$

148,627

$

157,150

Prepaid expenses

2,687

2,971

Other current assets

272

276

Total current assets

151,586

160,397

Restricted cash

216

216

Right-of-use assets

1,716

1,793

Other assets

473

477

Total assets

$

153,991

$

162,883

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

2,566

$

3,628

Term loan, current portion

—

2,554

Accrued expenses and other current liabilities

3,558

2,496

Accrued compensation and benefits

727

1,085

Total current liabilities

6,851

9,763

Term loan, net of current portion

4,843

1,922

Lease liability, net of current portion

1,566

1,653

Other liabilities

8

118

Total liabilities

13,268

13,456

Stockholders’ equity:

Preferred stock, $0.0001 par value, 10,000,000 shares authorized, and no shares issued and outstanding as of March 31, 2021 and December 31, 2020

—

—

Common stock, $0.0001 par value, 200,000,000 shares authorized, 23,301,872 and 23,260,399 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

2

2

Additional paid-in capital

211,449

210,266

Accumulated deficit

(70,728

)

(60,841

)

Total stockholders’ equity

140,723

149,427

Total liabilities and stockholders’ equity

$

153,991

$

162,883

SPRUCE BIOSCIENCES, INC.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except share and per share amounts)

Three Months Ended

March 31,

2021

2020

Operating expenses:

Research and development

$

6,714

$

4,610

General and administrative

3,103

523

Total operating expenses

9,817

5,133

Loss from operations

(9,817

)

(5,133

)

Interest expense

(89

)

(74

)

Other income, net

19

39

Net loss

$

(9,887

)

$

(5,168

)

Net loss per share, basic and diluted

$

(0.42

)

$

(6.76

)

Weighted-average shares of common stock outstanding, basic and diluted

23,283,658

764,408

SPRUCE BIOSCIENCES, INC.

Reconciliation of Total Operating Expenses to Non-GAAP Total Operating Expenses

(unaudited)

(in thousands)

Three Months Ended March 31,

2021

2020

Operating expenses:

Total operating expenses

$

9,817

$

5,133

Adjustments:

Depreciation

4

—

Stock-based compensation

1,120

32

Non-GAAP total operating expenses

$

8,693

$

5,101

Reconciliation of G&A Expenses to Non-GAAP G&A Expenses

(unaudited)

(in thousands)

Three Months Ended March 31,

2021

2020

Operating expenses:

G&A expenses

$

3,103

$

523

Adjustments:

Depreciation

4

—

Stock-based compensation

856

22

Non-GAAP G&A expenses

$

2,243

$

501

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005829/en/

Media Contact:

Will Zasadny

Canale Communications

(619) 961-8848

[email protected]

[email protected]

Investors:

Xuan Yang

Solebury Trout

(415) 971-9412

[email protected]

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Biotechnology General Health Other Health Health Pharmaceutical

MEDIA:

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Posted on May 12, 2021 4:09 pm
Five9 Announces Upcoming Conference Participation

Five9 Announces Upcoming Conference Participation

SAN RAMON, Calif.–(BUSINESS WIRE)–
Five9, Inc. (NASDAQ:FIVN), a leading provider of the intelligent cloud contact center, announced today that members of its management team will present at the following investor conferences:

The Needham Virtual Technology & Media Conference on Wednesday, May 19^th at 1:30 PM Eastern Time;

The J.P. Morgan Global Technology, Media and Communications Conference (Virtual) on Wednesday, May 26^th at 3:40 PM Eastern Time;

The Baird Global Consumer, Technology & Services Conference (Virtual) on Tuesday, June 8^th at 4:20 PM Eastern Time;

The Evercore ISI Technology, Media, and Telecom Conference (Virtual) on Wednesday, June 9^th at 10:15 AM Eastern Time; and

The Northland Customer Engagement SaaS Conference (Virtual) on Tuesday, June 15^th at 12:30 PM Eastern Time.

Webcasts of the events will be available on the investor relations section of the Company’s website at http://investors.five9.com/.

About Five9

Five9 is an industry-leading provider of cloud contact center solutions, bringing the power of cloud innovation to more than 2,000 customers worldwide and facilitating billions of call minutes annually. The Five9 Intelligent Cloud Contact Center provides digital engagement, analytics, workflow automation, workforce optimization, and practical AI to create more human customer experiences, to engage and empower agents, and deliver tangible business results. Designed to be reliable, secure, compliant, and scalable, the Five9 platform helps contact centers increase productivity, be agile, boost revenue, and create customer trust and loyalty.

For more information, visit www.five9.com.

Engage with us @Five9, LinkedIn, Facebook, Blog, That’s Genius Podcast.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005854/en/

Investor Relations Contact:

Five9, Inc.

Barry Zwarenstein

Chief Financial Officer

925-201-2000 ext. 5959

[email protected]

The Blueshirt Group for Five9, Inc.

Lisa Laukkanen

415-217-4967

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Technology VoIP Mobile/Wireless Telecommunications Software Internet

MEDIA:

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Posted on May 12, 2021 4:09 pm
ON24 Announces First Quarter 2021 Financial Results

ON24 Announces First Quarter 2021 Financial Results

First quarter total revenue grows 102% year-over-year to $50.1 million

ARR grows 90% year-over-year to $163.1 million as of March 31, 2021

SAN FRANCISCO–(BUSINESS WIRE)–ON24 (NYSE: ONTF), a leading cloud-based digital experience platform provider, today announced financial results for its first quarter ended March 31, 2021.

“We have started the year with strong momentum in the business. During the first quarter, total revenue grew 102% while ARR grew 90% year-over-year. Today, we are enabling thousands of companies to convert millions of prospects into customers,” said Sharat Sharan, co-founder and CEO of ON24. “We believe our cloud-based platform stands alone when it comes to driving engagement and delivering first-person data. As we move forward in a digital-first hybrid world, we believe that we are ideally positioned with a data-rich, digital system of engagement that enables measurable business growth for our customers.”

First Quarter 2020 Financial Highlights

ARR: ARR increased 90% year-over-year to $163.1 million as of March 31, 2021.

Revenue: Total revenue was $50.1 million, an increase of 102% year-over-year.

Digital Experience Platform Business Revenue: Digital experience platform business revenue (excluding legacy revenue)was $50 million, an increase of 111% year-over-year.

Operating Loss: Operating loss was $2.2 million, compared to an operating loss of $1.5 million in the first quarter of 2020.

Non-GAAP Operating Income (Loss): Non-GAAP operating income was $2.8 million, compared to a non-GAAP operating loss of $1.1 million in the first quarter of 2020.

Net Loss Attributable to Common Stockholders: Net loss attributable to common stockholders was $3.4 million, or $0.10 per diluted share, compared to a net loss attributable to common stockholders of $3.4 million, or $0.37 per diluted share in the first quarter of 2020.

Non-GAAP Net Income (Loss): Non-GAAP net income was $2.2 million, or $0.05 per diluted share, compared to a non-GAAP net loss of $1.7 million, or $0.18 per diluted share in the first quarter of 2020.

Cash Flow: Net cash provided by operating activities was $3.7 million, compared to $1.3 million provided in operating activities in the first quarter of 2020. Free cash flow was $3.2 million for the quarter, compared to $1.2 million in the first quarter of 2020.

For more information regarding non-GAAP operating income (loss), non-GAAP net income (loss) and free cash flows, see the section titled “Non-GAAP Financial Measures” below. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure, see the tables at the end of this press release.

“In addition to the strong growth in total revenue and ARR, we drove non-GAAP operating profit and positive operating cash flow in the first quarter. We remain confident in our ability to continue delivering strong growth in 2021,” said Steve Vattuone, Chief Financial Officer of ON24.

Financial Outlook

For the second quarter of 2021, the Company currently expects:

Total revenue of $50.5 to $51.5 million.

Non-GAAP operating income of $0 to $1.0 million.

Non-GAAP net loss per share of $(0.01) using 47 million basic and diluted shares outstanding to non-GAAP net income per share of $0.01 using 57 million diluted shares outstanding.

For the full year 2021, the Company expects:

Total revenue of $207.5 to $210.5 million.

Non-GAAP operating loss of ($2.0) to non-GAAP operating income of $1.0 million.

Non-GAAP loss per share of $0.08 to $0.02, using 44.4 million basic and diluted shares outstanding.

Conference Call Information:

ON24 will host a conference call and live webcast for analysts and investors today at 2:00 p.m. Pacific Time. Parties in the United States can access the call by dialing (800) 437-2398, and international parties can access the call by dialing (323) 289-6576, using the conference ID 7301901.

A webcast will be accessible on ON24’s investor relations website at investors.on24.com. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website.

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States, or GAAP, we consider our non-GAAP operating income, non-GAAP net income (loss) and free cash flow in evaluating our operating performance. We define non-GAAP operating income as net (loss) income excluding, interest expense, net, other (income) expense, income tax and stock-based compensation. We define non-GAAP net income (loss) as net income (loss) excluding cumulative preferred dividends allocated to preferred shareholders and stock-based compensation. We define free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment.

We use non-GAAP operating income and non-GAAP net income to evaluate our ongoing operations and for internal planning and forecasting purposes, and we use free cash flow to measure and evaluate cash generated through normal business operations. We believe non-GAAP operating income and non-GAAP net income may be helpful to investors because they provide consistency and comparability with past financial performance. We believe free cash flow may be helpful to investors because it reflects that some purchases of property and equipment are necessary to support ongoing operations, while providing a measure of cash available to acquire customers, expand within existing customers and otherwise pursue our business strategies.

However, these non-GAAP financial measures are each presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Non-GAAP financial measures have no standardized meanings prescribed by GAAP and are not prepared under a comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measure as a tools for comparison.

Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure are included in the tables at the end of this press release.

Forward-Looking Statements

This document contains “forward-looking statements” under applicable securities laws. Such statements can be identified by words such as: “outlook,” “expect,” “convert,” “believe,” “plan,” “future,” “may,” “should,” “will,” and similar references to future periods. Forward-looking statements include express or implied statements regarding our expected financial and operating results, the permanence of the shift in the way people do business, and other statements regarding our ability to achieve our business strategies, growth, or other future events or conditions. Such statements are based on our current beliefs, expectations, and assumptions about future events or conditions, which are subject to inherent risks and uncertainties, including our ability to sustain our recent revenue growth rate, attract new customers and expand sales to existing customers; fluctuation in our performance, our history of net losses and expected increases in our expenses; competition in our markets and any decline in demand for our solutions; our ability to expand our sales and marketing capabilities and otherwise manage our growth; the impact of the COVID-19 pandemic; disruptions or other issues with our technology or third-party services; compliance with data privacy, import and export controls, customs, sanctions and other laws and regulations; intellectual property matters; and matters relating to our common stock, along with the other risks and uncertainties discussed in the filings we make from time to time with the Securities and Exchange Commission. Actual results may differ materially from those indicated in forward-looking statements, and you should not place undue reliance on them. All statements herein are based only on information currently available to us and speak only as of the date hereof. Except as required by law, we undertake no obligation to update any such statement.

About ON24

ON24 provides a leading cloud-based Digital Experience Platform that makes it easy to create, scale, and personalize engaging experiences to drive measurable business growth. Today, we are helping over 2,000 companies worldwide, including 3 of the 5 largest global technology companies, 4 of the 5 largest US banks, 3 of the 5 largest global healthcare companies, and 3 of the 5 largest global industrial manufacturing companies, convert millions of prospects to buyers. Through interactive webinars, virtual events, and always-on multimedia experiences, ON24 provides a system of engagement, powered by AI, which enables businesses to scale engagement, conversions, and pipeline to drive revenue growth. The ON24 platform supports an average of 4 million professionals a month totaling over 2.5 billion engagement minutes per year. ON24 is headquartered in San Francisco with global offices in North America, EMEA, and APAC. For more information, visit www.ON24.com.

ON24, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

March 31, 2021 December 31, 2020

Assets

Current assets

Cash and cash equivalents
$

388,940

$

58,243

Short-term investments

3,000

3,000

Accounts receivable, net

45,578

48,617

Deferred contract acquisition costs, current

11,136

10,528

Prepaid expenses and other current assets

8,783

7,079

Total current assets

457,437

127,467

Property and equipment, net

9,072

9,051

Deferred contract acquisition costs, non-current

19,921

18,753

Other long-term assets

1,318

1,447

Total assets
$

487,748

$

156,718

Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)

Current liabilities

Accounts payable
$

6,123

$

4,730

Accrued liabilities

16,267

17,439

Deferred revenue

95,562

92,240

Long-term debt, current portion

2,476

2,359

Total current liabilities

120,428

116,768

Long-term debt

3,641

25,727

Other long-term liabilities

3,896

4,022

Total liabilities

127,965

146,517

Convertible Class A-1 and Class A-2 preferred stock

—

83,857

Redeemable convertible Class B and Class B-1 preferred stock

—

70,000

Stockholders’ equity (deficit)

Common stock

5

1

Additional paid-in capital

533,783

27,512

Accumulated deficit

(174,093

)

(171,263

)

Accumulated other comprehensive income (loss)

88

94

Total Stockholders’ equity (deficit)

359,783

(143,656

)

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)
$

487,748

$

156,718

ON24, INC.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(Unaudited)

Three Months Ended March 31,

2021

2020

Revenue:

Subscription and other platform
$

42,910

$

19,927

Professional services

7,189

4,819

Total revenue

50,099

24,746

Cost of revenue:

Subscription and other platform⁽¹⁾

7,485

4,156

Professional services⁽¹⁾

3,209

2,550

Total cost of revenue

10,694

6,706

Gross profit

39,405

18,040

Operating expenses:

Sales and marketing⁽¹⁾

23,925

12,010

Research and development⁽¹⁾

7,946

4,099

General and administrative⁽¹⁾

9,768

3,452

Total operating expenses

41,639

19,561

Loss from operations

(2,234

)

(1,521

)

Interest expense

231

212

Other (income) expense

116

271

Loss before provision for income taxes

(2,581

)

(2,004

)

Provision for income taxes

249

55

Net loss

(2,830

)

(2,059

)

Cumulative preferred dividends allocated to preferred stockholders

(558

)

(1,325

)

Net loss attributable to common stockholders
$

(3,388

)

$

(3,384

)

Net loss per share attributable to common stockholders:

Basic and diluted
$

(0.10

)

$

(0.37

)

Weighted-average shares used in computing net loss per share attributable to common stockholders:

Basic and diluted

32,615,648

9,130,231

(1) Includes stock-based compensation as follows:

Three Months Ended December 31,

2020

2019

Cost of revenue

Subscription and other platform
$

237

$

23

Professional services

62

4

Total cost of revenue

299

27

Sales and marketing

1,692

141

Research and development

782

57

General and administrative

2,221

178

Total
$

4,994

$

403

ON24, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three Months Ended March 31,

2021

2020

Cash flows from operating activities:

Net loss
$

(2,830

)

$

(2,059

)

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

Depreciation and amortization

1,160

547

Stock-based compensation expense

4,994

403

Amortization of deferred contract acquisition cost

3,674

1,880

Provision for allowance for doubtful accounts and billing reserve

517

254

Changes in operating assets and liabilities:

Accounts receivable

2,522

(5,557

)

Deferred contract acquisition cost

(5,450

)

(4,118

)

Prepaid expenses and other assets

(5,053

)

(865

)

Accounts payable

601

(336

)

Accrued liabilities

373

173

Other long-term liabilities

(126

)

(137

)

Deferred revenue

3,322

11,144

Net cash provided by operating activities

3,704

1,329

Cash flows from investing activities:

Purchase of property and equipment

(520

)

(97

)

Net cash used in investing activities

(520

)

(97

)

Cash flows from financing activities:

Proceeds from initial public offering, net of underwriting discounts

353,397

—

Proceeds from issuance of common stock resulting from exercise of options

1,411

485

Payment of tax withholding obligations related to net share settlements of stock options exercise

(2,001

)

—

Proceeds from long-term debt

—

6,000

Repayments of long-term debt

(22,407

)

(6,041

)

Repayment of capital lease obligations

(577

)

(206

)

Payments of offering costs

(2,305

)

—

Net cash provided by financing activities

327,518

238

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

(6

)

56

Net increase in cash, cash equivalents and restricted cash

330,696

1,526

Cash, cash equivalents and restricted cash, beginning of period

58,345

18,933

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

389,041

$

20,459

Supplemental disclosures of cash flow information:

Cash paid for taxes, net of refunds
$

11

$

4

Cash paid for interest
$

256

$

261

Supplemental disclosures of noncash investing and financing activities:

Equipment acquired under capital leases
$

1,015

$

598

Unpaid purchased fixed assets
$

135

$

58

Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock
$

153,857

$

—

Offering costs in accrued liabilities
$

1,176

$

—

ON24, INC.

Reconciliation from GAAP to Non-GAAP Results

(in thousands, except share and per share data)

(Unaudited)

Three Months Ended March 31,

2021

2020

Reconciliation of net loss to non-GAAP operating income (loss)

Net loss
$

(2,830

)

$

(2,059

)

Add:

Interest expense

231

212

Other (income) expense, net

116

271

Provision for income taxes

249

55

Stock-based compensation

4,994

403

Non-GAAP operating income (loss)
$

2,760

$

(1,118

)

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

Net loss
$

(2,830

)

$

(2,059

)

Add: Stock-based compensation expense

4,994

403

Non-GAAP net income (loss)
$

2,164

$

(1,656

)

Reconciliation of net loss available to common stockholders

Net loss attributable to common shareholders:
$

(3,388

)

$

(3,384

)

Add: Cumulative preferred dividends allocated to preferred shareholders

558

1,325

Add: Stock-based compensation expense

4,994

403

Non-GAAP net income (loss) attributable to common stockholders
$

2,164

$

(1,656

)

GAAP net loss per share, basic
$

(0.10

)

$

(0.37

)

GAAP net loss per share, diluted
$

(0.10

)

$

(0.37

)

Non-GAAP earnings (loss) per share, basic
$

0.07

$

(0.18

)

Non-GAAP earnings (loss) per share, diluted
$

0.05

$

(0.18

)

Shares Used in GAAP Per Share Calculations:

GAAP weighted-average shares used to compute GAAP net loss per share, basic

32,615,648

9,130,231

GAAP weighted-average shared used to compute GAAP net loss per share, diluted

32,615,648

9,130,231

Shares Used in Non-GAAP Per Share Calculations:

Non-GAAP weighted-average shares used to compute non-GAAP earnings (loss) per share, basic

32,615,648

9,130,231

Non-GAAP weighted-average shared used to compute non-GAAP earnings (loss) per share, diluted

42,163,113

9,130,231

ON24, INC.

Earnings (Loss) Per Share

(in thousands, except share and per share data)

GAAP Basic and Diluted Earnings (Loss) Per Share

Three Months Ended March 31,

2021

2020

GAAP basic and diluted net loss per share:

Net loss
$

(2,830

)

$

(2,059

)

Less: Cumulative preferred dividends allocated to preferred stockholders

(558

)

(1,325

)

Net loss attributable to common stockholders, basic and diluted

(3,388

)

(3,384

)

Income available to participating securities

—

—

Net loss available to common stockholders
$

(3,388

)

$

(3,384

)

Weighted average common stock outstanding, basic and diluted

32,615,648

9,130,231

Basic and diluted net loss per share of common stock
$

(0.10

)

$

(0.37

)

Non-GAAP Earning (Loss) Per Share

Three Months Ended March 31,

2021

2020

Non-GAAP basic earnings (loss) per share:

Net loss available to common stockholders
$

(3,388

)

$

(3,384

)

Less: Cumulative preferred dividends allocated to preferred stockholders

558

1,325

Add: Stock based compensation

4,994

403

Non-GAAP earnings (loss) attributable to common stockholders, basic and diluted

2,164

(1,656

)

Non-GAAP weighted-average shares used to compute non-GAAP earnings (loss) per share, basic

32,615,648

9,130,231

Non-GAAP weighted-average shares used to compute non-GAAP earnings (loss) per share, diluted

42,163,113

9,130,231

Non-GAAP earnings per share of common stock:

Non-GAAP earnings (loss) per share, basic
$

0.07

$

(0.18

)

Non-GAAP earnings (loss) per share, diluted
$

0.05

$

(0.18

)

ON24, INC.

Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow

(in thousands)

(Unaudited)

Three Months Ended March 31,

2021

2020

Net cash provided by (used in) operating activities:
$

3,704

$

1,329

Less: Purchases of property and equipment

(520

)

(97

)

Free cash flow
$

3,184

$

1,232

ON24, INC.

Revenue

(in thousands)

(Unaudited)

Three Months Ended March 31,

2021

2020

Digital Experience Platform

Subscription and other platform
$

42,858

$

19,316

Professional services

7,164

4,402

Total digital experience platform
$

50,022

$

23,718

Legacy

Subscription and other platform
$

52

$

611

Professional services

25

417

Total legacy revenue
$

77

$

1,028

Revenue

Subscription and other platform
$

42,910

$

19,927

Professional services

7,189

4,819

Total revenue
$

50,099

$

24,746

© 2021 ON24, Inc. All rights reserved. ON24 and the ON24 logo are trademarks owned by ON24, Inc., and are registered in the United States Patent and Trademark Office and in other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005947/en/

Media Contact:

Roger Villareal

[email protected]

Investor Contact:

Maili Bergman

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Data Management Technology Audio/Video Telecommunications Software Internet

MEDIA:

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Posted on May 12, 2021 4:09 pm
Sonos Reports Record Second Quarter Fiscal 2021 Results

Sonos Reports Record Second Quarter Fiscal 2021 Results

Raises Fiscal 2021 Outlook

SANTA BARBARA, Calif.–(BUSINESS WIRE)–
Sonos, Inc. (Nasdaq: SONO) today reported record second quarter fiscal 2021 results.

Second Quarter 2021 Financial Highlights (unaudited)

GAAP net income (loss) increased to $17.2 million from ($52.3) million last year; non-GAAP net income (loss) excluding stock-based compensation, restructuring and legal and transaction related fees increased to $44.6 million from ($37.2) million last year.

GAAP diluted earnings per share (EPS) increased to $0.12 from ($0.48) last year; non-GAAP diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees increased to $0.31 from ($0.34) last year.

Adjusted EBITDA increased to $48.5 million from ($28.4) million last year.

Adjusted EBITDA margin increased to 14.6% from (16.2%) last year.

Gross margin increased 810 basis points to 49.8% from 41.7% last year.

Revenue increased 90% year-over-year to $332.9 million; on a constant-currency basis, revenue increased approximately 83% year-over-year.

Sonos CEO Patrick Spence commented, “We are thrilled to report another record quarter at Sonos, as demand for our products continues to exceed even our heightened expectations. The power of our model is that customers can start with one product and expand to more over time, and our customers continue to prove they do just that. Based on our outstanding second quarter performance, the continued strong demand for our products, and the power and profitability of our unique business model, we are raising our outlook for fiscal 2021 again.”

Mr. Spence continued, “Our increased fiscal 2021 revenue outlook still assumes Sonos will account for only approximately 9% of the total spend in the $18 billion premium home audio market¹, and an even smaller fraction of the broader $89 billion global audio market² we expect to expand into over the long-term. We are truly just scratching the surface toward realizing our long-term opportunity. The future is bright for Sonos.”

Mr. Spence concluded, “We remain focused on our key three strategic initiatives – the expansion of our brand, the expansion of our offerings, and driving operational excellence – and continue to see a clear path toward achieving our fiscal 2024 targets of $2.25 billion revenue, 45% to 47% gross margin, and 15% to 18% adjusted EBITDA margin. We are extremely well positioned to deliver significant free cash flow and increased shareholder value over the long-term.”

Fiscal 2021 Outlook

Adjusted EBITDA increased to a range of $225 million to $250 million representing growth in the range of 107% to 130%.

This compares to our prior outlook of $195 million to $225 million, representing growth in the range of 80% to 107% and our initial fiscal 2021 outlook provided at the start of the fiscal year of $170 million to $205 million, representing growth in the range of 57% to 89%.

Adjusted EBITDA margin increased to a range of 13.8% to 14.9%, representing a 560 to 670 basis point improvement year-over-year.

This compares to our prior outlook range of 12.8% to 14.3%, representing a 460 to 610 basis point improvement and our initial fiscal 2021 outlook of 12% to 14%, representing a 380 to 580 basis point improvement.

Gross margin in the range of 46.0% to 46.5%, representing a 288 to 338 basis point improvement year-over-year.

Our fiscal 2021 gross margin outlook reflects minimal impact from ongoing tariffs and does not include the $27.5 million in tariff refunds expected due to timing uncertainty.

This is consistent with our prior guidance range of 46.0% to 46.5% and compares to our initial fiscal 2021 outlook of 45.3% to 45.8%.

Revenue increased to a range of $1.625 billion to $1.675 billion, representing growth in the range of 23% to 26% year-over-year (25% to 29% on a comparable basis excluding the 53rd week in fiscal 2020).

This compares to our prior guidance range of $1.525 billion to $1.575 billion, representing growth in the range of 15% to 19% from fiscal 2020 (17% to 21% excluding the 53rd week in fiscal 2020) and our initial fiscal 2021 outlook of $1.44 billion to $1.5 billion, or 9% to 13% growth (11% to 15% excluding the 53rd week in fiscal 2020).

¹ “Premium” defined as $100+ wireless speakers, $200+ soundbars, $300+ Hi-Fi systems, $250+ in-wall/in-ceiling speakers, $250+ bookshelf speakers (pairs), and all AV receivers, Floor standing speakers, home theater speakers and home theater in a box products and Hi-Fi separates. Source: Futuresource.

²Source: Futuresource.

Supplemental Earnings Presentation

The Company has posted a supplemental earnings presentation accompanying its second quarter fiscal 2021 results to the Earnings Reports section of its investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports.

Conference Call, Webcast and Transcript

The Company will host a webcast of its conference call and Q&A related to its second quarter fiscal 2021 results on May 12, 2021 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Participants may access the live webcast in listen-only mode on the Sonos investor relations website at https://investors.sonos.com/news-and-events/default.aspx. The conference call may also be accessed by dialing (833) 921-1637 with conference ID 6483115. Participants outside the U.S. can access the call by dialing (236) 714-2128 using the same conference ID.

An archived webcast of the conference call and a transcript of the company’s prepared remarks and Q&A session will also be available at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports following the call.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

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

Three Months Ended

Six Months Ended

April 3, 2021

March 28, 2020

April 3, 2021

March 28, 2020

Revenue
$

332,949

$

175,098

$

978,532

$

737,181

Cost of revenue

167,173

102,089

513,331

436,552

Gross profit

165,776

73,009

465,201

300,629

Operating expenses

Research and development

56,370

49,593

108,717

102,120

Sales and marketing

57,205

50,504

131,658

127,928

General and administrative

39,806

26,119

75,047

56,327

Total operating expenses

153,381

126,216

315,422

286,375

Operating income (loss)

12,395

(53,207

)

149,779

14,254

Other income (expense), net

Interest income

44

874

80

1,873

Interest expense

(182

)

(374

)

(448

)

(827

)

Other income (expense), net

(1,578

)

(1,423

)

2,680

3,001

Total other income (expense), net

(1,716

)

(923

)

2,312

4,047

Income (loss) before provision for (benefit from) income taxes

10,679

(54,130

)

152,091

18,301

Provision for (benefit from) income taxes

(6,542

)

(1,810

)

2,578

(153

)

Net income (loss)
$

17,221

$

(52,320

)

$

149,513

$

18,454

Net income (loss) attributable to common stockholders:

Basic
$

17,221

$

(52,320

)

$

149,513

$

18,454

Diluted
$

17,221

$

(52,320

)

$

149,513

$

18,454

Net income (loss) per share attributable to common stockholders:

Basic
$

0.14

$

(0.48

)

$

1.26

$

0.17

Diluted
$

0.12

$

(0.48

)

$

1.09

$

0.16

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:

Basic

121,880,615

109,515,049

118,745,569

109,249,866

Diluted

143,055,546

109,515,049

136,849,846

117,819,569

Total comprehensive income (loss)

Net income (loss)
$

17,221

$

(52,320

)

$

149,513

$

18,454

Change in foreign currency translation adjustment

199

(431

)

1,046

(950

)

Comprehensive income (loss)
$

17,420

$

(52,751

)

$

150,559

$

17,504

Condensed Consolidated Balance Sheets

(unaudited, dollars in thousands, except par values)

As of

April 3, 2021

October 3, 2020

Assets

Current assets:

Cash and cash equivalents
$ 638,927

$ 407,100

Restricted cash
192

191

Accounts receivable, net of allowances
69,690

54,935

Inventories
139,581

180,830

Prepaids and other current assets
31,763

17,321

Total current assets
880,153

660,377

Property and equipment, net
65,509

60,784

Operating lease right-of-use assets
39,061

42,342

Goodwill
15,545

15,545

Intangible assets, net
25,434

26,394

Deferred tax assets
1,984

1,800

Other noncurrent assets
20,600

8,809

Total assets
$ 1,048,286

$ 816,051

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable
$ 203,585

$ 250,328

Accrued expenses
61,659

45,049

Accrued compensation
46,665

44,517

Short-term debt
–

6,667

Deferred revenue, current
18,392

15,304

Other current liabilities
40,770

31,150

Total current liabilities
371,071

393,015

Operating lease liabilities, noncurrent
39,361

50,360

Long-term debt
–

18,251

Deferred revenue, noncurrent
52,497

47,085

Deferred tax liabilities
2,394

2,434

Other noncurrent liabilities
3,695

7,067

Total liabilities
469,018

518,212

Stockholders’ equity:

Common stock, $0.001 par value
126

114

Treasury stock
(26,023)

(20,886)

Additional paid-in capital
684,988

548,993

Accumulated deficit
(78,979)

(228,492)

Accumulated other comprehensive loss
(844)

(1,890)

Total stockholders’ equity
579,268

297,839

Total liabilities and stockholders’ equity
$ 1,048,286

$ 816,051

Condensed Consolidated Statements of Cash Flows

(unaudited, dollars in thousands)

Six Months Ended

April 3,

2021

March 28,

2020

Cash flows from operating activities

Net income
$

149,513

$

18,454

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

16,725

18,831

Stock-based compensation expense

31,207

26,598

Other

344

2,989

Deferred income taxes

(146

)

74

Foreign currency transaction gain

(1,047

)

(420

)

Changes in operating assets and liabilities:

Accounts receivable, net

(13,260

)

63,344

Inventories

39,631

106,245

Other assets

(21,982

)

(9,690

)

Accounts payable and accrued expenses

(36,485

)

(191,070

)

Accrued compensation

2,087

(14,443

)

Deferred revenue

8,374

3,729

Other liabilities

992

10,727

Net cash provided by operating activities

175,953

35,368

Cash flows from investing activities

Purchases of property and equipment, intangible and other assets

(19,927

)

(25,800

)

Cash paid for acquisition, net of acquired cash

–

(36,289

)

Net cash used in investing activities

(19,927

)

(62,089

)

Cash flows from financing activities

Repayments of borrowings

(25,000

)

(3,333

)

Payments for repurchase of common stock

(682

)

(33,216

)

Proceeds from exercise of common stock options

119,166

12,585

Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock units

(18,821

)

(4,596

)

Net cash provided by (used in) financing activities

74,663

(28,560

)

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

1,139

(107

)

Net increase (decrease) in cash, cash equivalents and restricted cash

231,828

(55,388

)

Cash, cash equivalents and restricted cash

Beginning of period

407,291

338,820

End of period
$

639,119

$

283,432

Supplemental disclosure

Cash paid for interest
$

357

$

851

Cash paid for taxes, net of refunds
$

3,255

$

1,025

Cash paid for amounts included in the measurement of lease liabilities
$

11,683

$

7,346

Supplemental disclosure of non-cash investing and financing activities

Purchases of property and equipment in accounts payable and accrued expenses
$

8,910

$

3,270

Right-of-use assets obtained in exchange for new operating lease liabilities
$

1,622

$

75,642

Reconciliation of Net Income (Loss) to Adjusted EBITDA

(unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

April 3, 2021

March 28, 2020

April 3, 2021

March 28, 2020

Net income (loss)
$

17,221

$

(52,320

)

$

149,513

$

18,454

Add (deduct):

Depreciation and amortization

8,742

9,726

16,725

18,831

Stock-based compensation expense

16,363

13,394

31,207

26,598

Interest income

(44

)

(874

)

(80

)

(1,873

)

Interest expense

182

374

448

827

Other (income) expense, net

1,578

1,423

(2,680

)

(3,001

)

Provision for (benefit from) income taxes

(6,542

)

(1,810

)

2,578

(153

)

Restructuring and related expenses ⁽¹⁾

–

–

(2,611

)

–

Legal and transaction related costs ⁽²⁾

11,013

1,705

19,679

5,153

Adjusted EBITDA
$

48,513

$

(28,382

)

$

214,779

$

64,836

Revenue
$

332,949

$

175,098

$

978,532

$

737,181

Adjusted EBITDA margin

14.6

%

(16.2

)%

21.9

%

8.8

%

(1) Restructuring and related expenses for the six months ended April 3, 2021 includes a gain of $2.8 million, related to our negotiation for the early termination of a facility lease that was part of the 2020 restructuring plan. The gain represents the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. For a description of the 2020 restructuring plan, see “Restructuring and Related Costs” below.

(2) Legal and transaction related costs consist of expenses related to our intellectual property (“IP”) litigation against Alphabet Inc. and Google LLC as well as legal and transaction costs associated with our acquisition activity, which we do not consider representative of our underlying operating performance.

Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow

(unaudited, dollars in thousands)

Six Months Ended

April 3, 2021

March 28, 2020

Cash flows provided by operating activities
$175,953

$35,368

Less: Purchases of property and equipment, intangible and other assets
(19,927)

(25,800)

Free cash flow
$ 156,026

$ 9,568

Revenue by Product Category

(unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

April 3, 2021

March 28, 2020

April 3, 2021

March 28, 2020

Sonos speakers
$ 267,534

$ 116,367

$ 795,050

$ 583,044

Sonos system products
52,062

47,202

149,820

108,723

Partner products and other revenue
13,353

11,529

33,662

45,414

Total revenue
$ 332,949

$ 175,098

$ 978,532

$ 737,181

Revenue by Geographical Region

(unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

April 3, 2021

March 28, 2020

April 3, 2021

March 28, 2020

Americas
$ 193,938

$ 101,964

$ 561,177

$ 405,158

Europe, Middle East and Africa (“EMEA”)
114,306

57,252

354,313

269,990

Asia Pacific (“APAC”)
24,705

15,882

63,042

62,033

Total revenue
$ 332,949

$ 175,098

$ 978,532

$ 737,181

Stock-based Compensation

(unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

April 3, 2021

March 28, 2020

April 3, 2021

March 28, 2020

Cost of revenue
$ 261

$ 278

$ 474

$ 561

Research and development
6,683

5,427

12,942

10,543

Sales and marketing
3,632

3,407

7,040

6,948

General and administrative
5,787

4,282

10,751

8,546

Total stock-based compensation expense
$ 16,363

$ 13,394

$ 31,207

$ 26,598

Restructuring and Related Costs ⁽¹⁾

(unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

April 3, 2021

April 3, 2021

Research and development
$

–

$

25

Sales and marketing

–

(2,636

)

Total restructuring and related costs
$

–

$

(2,611

)

(1) On June 23, 2020, we initiated a restructuring plan as part of our efforts to reduce operating expenses and preserve liquidity due to the uncertainty and challenges stemming from the COVID-19 pandemic. As part of the 2020 restructuring plan, we eliminated approximately 12% of our global headcount and closed our New York retail store and six satellite offices. We believe these initiatives will better align our resources to provide further operating flexibility and more efficiently position our business for our long-term strategy. Activities under the 2020 restructuring plan were substantially completed in the first quarter of fiscal 2021. In the first quarter of fiscal 2021, we negotiated the early termination of a facility lease that was part of the 2020 restructuring and recorded a gain of $2.8 million, representing the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. The gain was recognized as a credit in sales and marketing expenses on the condensed consolidated statements of operations and comprehensive income.

Use of Non-GAAP Measures

We have provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles (“U.S. GAAP”), including adjusted EBITDA, adjusted EBITDA margin, free cash flow, net income excluding stock-based compensation, restructuring, and legal and transaction related fees, and diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees. These non-GAAP financial measures are not based on any standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making. Non-GAAP financial measures should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of these financial measures to their nearest U.S. GAAP financial equivalents provided in the financial statement tables above. We define adjusted EBITDA as net income adjusted to exclude the impact of depreciation, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes and other items that we do not consider representative of our underlying operating performance. We define adjusted EBITDA margin as adjusted EBITDA divided by revenue. We define free cash flow as net cash from operations less purchases of property and equipment and intangible assets. We calculate non-GAAP net income excluding stock-based compensation, restructuring and legal and transaction related fees as net income less stock-based compensation, restructuring fees and legal and transaction related fees. We calculate non-GAAP diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees as net income less stock-based compensation, restructuring costs and legal and transaction related fees divided by our number of shares at fiscal year end. We do not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because we cannot do so without unreasonable effort due to unavailability of information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, we do so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for items such as stock-based compensation, which is inherently difficult to predict with reasonable accuracy. Stock-based compensation expense is difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. In addition, for purposes of setting annual guidance, it would be difficult to quantify stock-based compensation expense for the year with reasonable accuracy in the current quarter. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our outlook for the fiscal year ended October 2, 2021, our long-term focus, financial, growth and business strategies and opportunities, growth metrics and targets, our business model, new products, services and partnerships, profitability and gross margins, our direct-to-consumer efforts, our market share, and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to the duration and impact of the COVID-19 pandemic and related mitigation efforts on our industry and our supply chain; supply chain challenges, including shipping and logistics challenges and significant limits on component supplies; changes in general economic or market conditions that could affect consumer income and overall consumer spending; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth and business strategies; our ability to meet and accurately forecast product demand and manage any product availability delays; and the other risk factors set forth under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended January 2, 2021 and our other filings filed with the Securities and Exchange Commission (the “SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this press release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. Sonos and Sonos product names are trademarks or registered trademarks of Sonos, Inc. All other product names and services may be trademarks or service marks of their respective owners.

About Sonos

Sonos (Nasdaq: SONO) is one of the world’s leading sound experience brands. As the inventor of multi-room wireless home audio, Sonos’ innovation helps the world listen better by giving people access to the content they love and allowing them to control it however they choose. Known for delivering an unparalleled sound experience, thoughtful home design aesthetic, simplicity of use and an open platform, Sonos makes the breadth of audio content available to anyone. Sonos is headquartered in Santa Barbara, California. Learn more at www.sonos.com.

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Cammeron McLaughlin

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Posted on May 12, 2021 4:09 pm
Montrose Environmental Group Announces First Quarter 2021 Results

Montrose Environmental Group Announces First Quarter 2021 Results

– Consistent and Strong Demand for Montrose’s Environmental Solutions –

– Entered into Sustainability-Linked Credit Facility in April 2021 –

– Acquired MSE Group to Bolster Select Environmental Service Capabilities –

– Increased Guidance for Full Year 2021 –

IRVINE, Calif.–(BUSINESS WIRE)–
Montrose Environmental Group, Inc. (the “Company,” “Montrose” or “MEG”) (NYSE: MEG) today announced results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights

Total revenue of $133.8 million increased 119.3% compared to the prior year quarter.

Net loss of $11.6 million compared to a net loss of $41.2 million in the prior year quarter. Net loss for first quarter 2021 was primarily due to non-cash fair value adjustment expenses.

Adjusted EBITDA¹ of $16.8 million increased 202.5% compared to the prior year quarter.

Adjusted EBITDA margin¹ improved to 12.6% compared to 9.1% in the prior year quarter.

Acquired MSE Group, a premier provider of environmental planning, permitting and remediation solutions primarily to the U.S. federal government.

“We are pleased to have started 2021 on a solid footing. Though the business is best assessed on an annual basis rather than on a quarterly basis, the strong start coupled with our team’s optimism across all parts of our business is causing us to increase our guidance for 2021,” stated Vijay Manthripragada, Montrose’s Chief Executive Officer. “Our investments in environmental R&D and commercialization and the response capabilities of our team at CTEH continue to add value to our customers and support our performance and outlook.”

Mr. Manthripragada continued, “The economic and political dynamics in our key markets continue to create opportunities for Montrose as customers look to create value through environmental stewardship. For example, some of our customers are voluntarily accelerating their emissions reduction targets to align with the recently announced long-term emissions goals in the U.S. Such developments create tailwinds for each of our business segments, and I believe they validate our uniquely integrated approach to the environmental industry.”

(1)

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. See the appendix to this release for a discussion of these measures, including how they are calculated and the reasons why we believe they provide useful information to investors, and a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure.

First Quarter 2021 Results

Total revenue in the first quarter of 2021 increased 119.3% to $133.8 million, compared to $61.0 million in the prior year quarter. Excluding discontinued services, which contributed zero revenue in the first quarter 2021 and $2.5 million in the first quarter 2020, total revenue increased 128.7%. The increase in revenues was driven by CTEH (acquired in April 2020) and organic growth in our Remediation and Reuse segment, partially offset by a decrease in revenues in our Measurement and Analysis segment, which was expected.

Net loss was $11.6 million, compared to a net loss of $41.2 million in the prior year quarter. The year-over-year change was primarily attributable to an increase in both revenues and margins as well as lower non-cash fair value adjustment expenses.

Adjusted EBITDA¹ increased to $16.8 million, compared to $5.6 million in the prior year quarter. The increase in Adjusted EBITDA¹ was primarily driven by higher revenues and favorable shifts in business mix. Adjusted EBITDA margin¹ improved 350 basis points to 12.6%, compared to 9.1% in the prior year quarter, mainly due to business mix and operating leverage from lower corporate expenses as a percentage of revenue.

Operating Cash Flow Liquidity and Capital Resources

Cash used in operating activities was $13.9 million in the first quarter of 2021, compared to cash used in operations of $9.0 million in the prior year quarter. Cash used in operations in both quarters was driven by seasonality and the payment of annual bonuses. In addition, in the first quarter of 2021, working capital increased by $27.1 million as a result of the significant increase in revenues versus the fourth quarter of 2020. We remain confident in our ability to generate strong cash flows on a full year basis in 2021.

At March 31, 2021, Montrose had total debt, net of deferred debt issuance costs, of $175.6 million and $10.6 million of cash. As of March 31, 2021, the Company’s leverage ratio under its credit facility, which includes the impact of acquisition-related contingent earnout payments that may become payable in cash, was 3.1 times. The leverage ratio increased from December 31, 2020 primarily due to the typical use of cash in the first quarter, the change in working capital due to the significant increase in the first quarter revenues, and the acquisition of MSE. With expected strong operating cash flows for the remainder of 2021, we remain confident in being able to continue executing on our organic and acquisition-related strategy while maintaining our leverage between 2.5x-3.5x.

In April 2021 the Company entered into a new sustainability-linked credit facility in the form of a term loan, in an aggregate principal amount of $175.0 million, and a revolving credit facility, in an aggregate principal amount of $125.0 million. The Company used net proceeds from the new debt to repay all of its outstanding borrowings under its former term loan and former revolver. The new credit facility’s opening spread of LIBOR plus 2.0% not only reduces the previous term loan interest rate of 5.5%, but also provides up to a 5 basis point pricing adjustment based on Montrose’s performance against certain sustainability and ESG related objectives pursuant to the agreement.

Acquisitions

In January 2021, Montrose acquired MSE Group (“MSE”), a leading provider of environmental solutions primarily to the U.S. federal government. The addition of the MSE team is strategically additive to our Remediation and Reuse Segment, increases our environmental service offerings for select U.S. federal agencies, and expands our geographic presence in the Southeast U.S. The Company’s M&A pipeline and outlook for deal activity in 2021 remain strong.

Full Year 2021 Outlook

Because demand for environmental services does not follow fiscal quarter patterns, the Company’s business is best assessed on yearly results. Given its strong start to the year and strength across its segments, the Company expects full year 2021 Adjusted EBITDA¹ to be in the range of $63.0 million to $70.0 million, which is increased from its prior full year 2021 guidance of $61.0 million to $67.0 million in Adjusted EBITDA¹. This upgraded outlook reflects anticipated year-over-year revenue growth in excess of 20.0% at the mid-point and is primarily attributable to the timing of strong first quarter revenues.

The current outlook is based on a combination of mid-to-high single digit organic growth plus the contribution of completed acquisitions. The outlook does not include any benefit from future acquisitions that have not yet been completed.

We have successfully grown revenue in excess of 20.0% every year and expect to exceed that threshold in 2021. In addition, we expect to continue adding strategically and financially accretive acquisitions that are not yet reflected in our 2021 guidance or outlook.

Webcast and Conference Call

The Company’s senior management will host a webcast and conference call on Wednesday, May 12, 2021 at 5:00 p.m. Eastern time to discuss first quarter financial results. Their prepared remarks will be followed by a question and answer session. A live webcast of the conference call will be available in the Investors section of the Montrose website at www.montrose-env.com. The conference call will also be accessible by dialing 1-877-407-9208 (Domestic) and 1-201-493-6784 (International). For those who are unable to listen to the live broadcast, an audio replay of the conference call will be available on the Montrose website for 30 days.

About Montrose

Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today, and prepare for what’s coming tomorrow. With more than 2,000 employees across over 70 locations around the world, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling the Company to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit www.montrose-env.com.

Forward-Looking Statements

This press 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. Forward-looking statements may be identified by the use of words such as “intend,” “expect”, and “may”, and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Further, many of these factors are, and may continue to be, amplified by the COVID-19 pandemic. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

MONTROSE ENVIRONMENTAL GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except per share data)

Three Months Ended

March 31,

2021

2020

REVENUES

$

133,817

$

61,031

COST OF REVENUES (exclusive of depreciation and

amortization shown below)

95,316

44,398

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE

25,000

20,519

INITIAL PUBLIC OFFERING EXPENSE

—

531

FAIR VALUE CHANGES IN BUSINESS ACQUISITIONS

CONTINGENT CONSIDERATION

11,064

—

DEPRECIATION AND AMORTIZATION

10,769

7,560

LOSS FROM OPERATIONS

(8,332

)

(11,977

)

OTHER EXPENSE

Other expense

(574

)

(29,830

)

Interest expense—net

(2,688

)

(2,593

)

Total other expenses—net

(3,262

)

(32,423

)

LOSS BEFORE EXPENSE (BENEFIT) FROM INCOME TAXES

(11,594

)

(44,400

)

INCOME TAXES EXPENSE (BENEFIT)

2

(3,152

)

NET LOSS

$

(11,596

)

$

(41,248

)

EQUITY ADJUSTMENT FROM FOREIGN CURRENCY

TRANSLATION

29

(3

)

COMPREHENSIVE LOSS

(11,567

)

(41,251

)

ACCRETION OF REDEEMABLE SERIES A-1 PREFERRED

STOCK

—

(5,415

)

CONVERTIBLE AND REDEEMABLE SERIES A-2

PREFERRED STOCK DIVIDEND

(4,100

)

—

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

(15,696

)

(46,663

)

WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING— BASIC AND DILUTED

25,117

8,904

NET LOSS PER SHARE ATTRIBUTABLE TO COMMON

STOCKHOLDERS— BASIC AND DILUTED

$

(0.62

)

$

(5.24

)

MONTROSE ENVIRONMENTAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In thousands, except share data)

March 31,

December 31,

2021

2020

ASSETS

CURRENT ASSETS:

Cash and restricted cash

$

10,641

$

34,881

Accounts receivable—net

65,771

54,102

Contract assets

61,636

38,576

Prepaid and other current assets

8,830

6,709

Total current assets

146,878

134,268

NON-CURRENT ASSETS:

Property and equipment—net

34,941

34,399

Goodwill

282,199

274,667

Other intangible assets—net

157,315

154,854

Other assets

3,896

4,538

TOTAL ASSETS

$

625,229

$

602,726

LIABILITIES, CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK AND

STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable and other accrued liabilities

$

52,431

$

34,877

Accrued payroll and benefits

22,564

21,181

Business acquisitions contingent consideration, current

50,364

49,902

Current portion of long-term debt

6,214

5,583

Total current liabilities

131,573

111,543

NON-CURRENT LIABILITIES:

Business acquisitions contingent consideration, long-term

16,971

4,565

Other non-current liabilities

2,514

2,523

Deferred tax liabilities—net

2,591

2,815

Conversion option

21,488

20,886

Long-term debt—net of deferred financing fees

169,425

170,321

Total liabilities

344,562

312,653

COMMITMENTS AND CONTINGENCIES

CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK $0.0001

PAR VALUE—

Authorized, issued and outstanding shares: 17,500 at March 31, 2021 and

December 31, 2020; aggregate liquidation preference of $182.2 million at March 31, 2021

and December 31, 2020

152,928

152,928

STOCKHOLDERS’ EQUITY:

Common stock, $0.000004 par value; authorized shares: 190,000,000 at

March 31, 2021 and December 31, 2020; issued and outstanding shares: 25,438,857 and

24,932,527 at March 31, 2021 and December 31, 2020, respectively

—

—

Additional paid-in-capital

261,588

259,427

Accumulated deficit

(133,949

)

(122,353

)

Accumulated other comprehensive income

100

71

Total stockholders’ equity

127,739

137,145

TOTAL LIABILITIES, CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK

AND STOCKHOLDERS’ EQUITY

$

625,229

$

602,726

MONTROSE ENVIRONMENTAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended March 31,

2021

2020

OPERATING ACTIVITIES:

Net loss

$

(11,596

)

$

(41,248

)

Adjustments to reconcile net loss to net cash used in operating activities:

Provision for bad debt

508

6,333

Depreciation and amortization

10,769

7,560

Stock-based compensation expense

1,805

1,150

Fair value changes in embedded derivatives

602

29,627

Fair value changes in business acquisitions

contingent consideration

11,064

—

Deferred income taxes

2

(3,152

)

Other

50

(180

)

Changes in operating assets and liabilities—net of acquisitions:

Accounts receivable and contract assets

(29,029)

(319

)

Prepaid expenses and other current assets

787

(683

)

Accounts payable and other accrued liabilities

3,183

(5,005

)

Accrued payroll and benefits

(2,058

)

(2,458

)

Other assets

—

(603

)

Net cash used in operating activities

(13,913

)

(8,978

)

INVESTING ACTIVITIES:

Purchases of property and equipment

(922

)

(1,558

)

Proprietary software development and software

licenses costs

(204

)

(102

)

Cash paid for acquisitions—net of cash acquired

(6,272

)

—

Net cash used in investing activities

(7,398

)

(1,660

)

FINANCING ACTIVITIES:

Proceeds from line of credit

—

50,453

Payments on line of credit

—

(37,275

)

Repayment of term loan

(547

)

(1,250

)

Payment of contingent consideration and other

purchase price obligations

—

(4,703

)

Repayment of capital leases

(625

)

(685

)

Payments of deferred offering costs

—

(1,175

)

Debt issuance costs

—

(127

)

Proceeds from issuance of common stock

2,185

—

Dividend payment to the Series A-2 shareholders

(4,100

)

—

Net cash (used in) provided by financing activities

(3,087

)

5,238

CHANGE IN CASH, CASH EQUIVALENTS AND

RESTRICTED CASH

(24,398

)

(5,400

)

Foreign exchange impact on cash balance

158

36

CASH, CASH EQUIVALENTS AND RESTRICTED CASH:

Beginning of year

34,881

6,884

End of period

$

10,641

$

1,520

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS

INFORMATION:

Cash paid for interest

$

2,500

$

1,745

Cash paid for income tax

$

305

$

64

SUPPLEMENTAL DISCLOSURES OF NON-CASH

INVESTING AND FINANCING ACTIVITIES:

Accrued purchases of property and equipment

$

594

$

613

Property and equipment purchased under

capital leases

$

670

$

1,493

Accretion of the redeemable series A-1 preferred

stock to redeemable value

$

—

$

5,415

Common stock issued to acquire new businesses

$

2,271

$

—

Acquisitions unpaid contingent consideration

$

67,335

$

4,082

Offering costs included in accounts payable and

other accrued liabilities

$

—

$

49

Non-GAAP Financial Information

In addition to our results under GAAP, in this release we also present certain other supplemental financial measures of financial performance that are not required by, or presented in accordance with, GAAP, including Adjusted EBITDA and Adjusted EBITDA margin. We calculate Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for the impact of certain other items, including stock-based compensation expense and acquisition-related costs, as set forth in greater detail in the table below. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenues for a given period.

Adjusted EBITDA and Adjusted EBITDA margin are two of the primary metrics used by management to evaluate our financial performance and compare it to that of our peers, evaluate the effectiveness of our business strategies, make budgeting and capital allocation decisions and in connection with our executive incentive compensation. These measures are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe they are helpful in highlighting trends in our operating results because they allow for more consistent comparisons of financial performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management, as well as items that may differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments.

These non-GAAP measures do, however, have certain limitations and should not be considered as an alternative to net income (loss) or any other performance measure derived in accordance with GAAP. Our presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items for which we may make adjustments. In addition, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similarly titled measures used by other companies in our industry or across different industries, and other companies may not present these or similar measures. Management compensates for these limitations by using these measures as supplemental financial metrics and in conjunction with our results prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single measure and to view Adjusted EBITDA and Adjusted EBITDA margin in conjunction with the related GAAP measures.

Additionally, we have provided estimates regarding Adjusted EBITDA and Adjusted EBITDA margin for 2021. These projections account for estimates of revenue, operating margins and corporate and other costs. However, we cannot reconcile our projection of Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, without unreasonable efforts because of the unpredictable or unknown nature of certain significant items excluded from Adjusted EBITDA and the resulting difficulty in quantifying the amounts thereof that are necessary to estimate net income (loss). Specifically, we are unable to estimate for the future impact of certain items, including income tax (expense) benefit, stock-based compensation expense, fair value changes and the accounting for the issuance of the Series A-2 preferred stock. We expect the variability of these items could have a significant impact on our reported GAAP financial results.

In this release we also provide information regarding organic growth, which is one of the measures management uses to assess our results of operations. We define organic growth as the change in revenues excluding revenues from acquisitions for the first twelve months following the date of acquisition and excluding revenues from businesses disposed of or discontinued. As a result of the significance of the CTEH acquisition to Montrose, and the potential annual volatility in CTEH’s revenues, at times we also disclose organic growth combined with the annual organic revenue growth of CTEH, but excluding CTEH’s revenues from projects contributing more than $4 million of revenue. We expect to continue to disclose organic revenue growth with and without CTEH. Organic growth is not, however, a measure of revenue growth calculated in accordance with GAAP and should be considered in conjunction with revenue growth calculated in accordance with GAAP.

Montrose Environmental Group, Inc.

Reconciliation of Net Loss to Adjusted EBITDA

(in thousands)

For the Three Months

Ended March 31,

(in thousands)

2021

2020

Net loss

$

(11,596

)

$

(41,248

)

Interest expense

2,688

2,593

Income tax expense (benefit)

2

(3,152

)

Depreciation and amortization

10,769

7,560

EBITDA

$

1,863

$

(34,247

)

Stock-based compensation ⁽¹⁾

1,805

1,150

Start-up losses and investment in new services ⁽²⁾

968

379

Acquisition costs ⁽³⁾

237

1,307

Fair value changes in financial instruments⁽⁴⁾

602

29,626

Expenses related to financing transactions ⁽⁵⁾

50

—

Fair value changes in business acquisitions

contingent consideration ⁽⁶⁾

11,064

—

Short term purchase accounting fair value adjustment

to deferred revenue⁽⁷⁾

—

243

IPO expense ⁽⁸⁾

—

531

Discontinued service lines and closing of Berkley

lab ⁽⁹⁾

—

6,417

Other losses and expenses⁽¹⁰⁾

211

147

Adjusted EBITDA

$

16,800

$

5,553

(1)

Represents non-cash stock-based compensation expenses related to option awards issued to employees and restricted stock grants issued to directors.

(2)

Represent start-up losses related to losses incurred on (i) the expansion of lab testing methods and lab capacity, including into new geographies and (ii) expansion of our Remediation and Consulting services and (iv) expansion into Europe in advance of projects driven by new regulations.

(3)

Includes financial and tax diligence, consulting, legal, valuation, accounting and travel costs and acquisition-related incentives related to our acquisition activity.

(4)

Amounts relate to the change in fair value of the embedded derivatives and warrant option attached to the Series A-1 preferred stock and the Series A-2 preferred stock.

(5)

Amounts represent non-capitalizable expenses associated with refinancing and amending our debt facilities.

(6)

Reflects the difference between the expected settlement value of acquisition related earn-out payments at the time of the closing of acquisitions and the expected (or actual) value of earn-outs at the end of the relevant period.

(7)

Purchase accounting fair value adjustment to deferred revenue represents the impact of the fair value adjustment to the carrying value of deferred revenue as of the date of acquisition of ECT2.

(8)

Represents expenses incurred by us to prepare for our initial public offering, as well as costs from IPO-related bonuses.

(9)

Represents losses from the Discontinued Service Lines and the Berkeley lab.

(10)

Represents non-operational charges incurred as a result of lease abandonments and non-capitalizable costs related to the implementation of a new ERP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005961/en/

Investor Relations:

Rodny Nacier

(949) 988-3383

[email protected]

Media Relations:

Doug Donsky

(646) 361-1427

[email protected]

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INDUSTRY KEYWORDS: Professional Services Environment Technology Other Technology Other Science Consulting Science

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Posted on May 12, 2021 4:08 pm
QIAGEN Receives U.S. FDA Emergency Use Authorization for Fast and Easy-to-Use Digital Test to Detect SARS-CoV-2 Coronavirus Antibodies

QIAGEN Receives U.S. FDA Emergency Use Authorization for Fast and Easy-to-Use Digital Test to Detect SARS-CoV-2 Coronavirus Antibodies

U.S. authorization gives healthcare professionals access to portable rapid testing device that can monitor immune status in relation to COVID-19

Test based on QIAGEN partner Ellume’s proprietary eHub technology and helps ease testing shortfalls by using automation and providing easy-to-read results

eHub digital device can handle eight tests at once, all working independently of each other, can process up to 32 samples per hour, can eventually be used simultaneously with the antigen test

GERMANTOWN, Md. & HILDEN, Germany–(BUSINESS WIRE)–
QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) today announced it has received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) for the fast and easy-to-use QIAreach^® Anti-SARS-CoV-2 Total Test.

The authorization means QIAGEN can start making its portable antibody testing device available to health-care professionals in the U.S. Each antibody test takes only about 10 minutes to identify whether a person carries antibodies to the SARS-CoV-2 virus as a result of prior infection. Individual test results are read on a digital eHub device that can process up to 32 tests per hour – and will eventually also run the antigen test.

The QIAreach Anti-SARS-CoV-2 Total Test is a serological test that has been shown to have a sensitivity of 93.85% (CI 84.99–98.30%) and a specificity of 97.83 %–%% (CI 95.00–99.29%). QIAGEN’s technology detects total antibodies (Total immunoglobulin) specific to SARS-CoV-2 immune response – while most other tests currently identify only selected antibodies.

The QIAreach Anti-SARS-CoV-2 Total Test was developed in partnership with Ellume, an Australian digital diagnostics company. It is the first of two QIAGEN COVID-19 tests to make use of Ellume’s digital eHub and eStick system: QIAGEN in early September 2020 presented the QIAreach SARS-CoV-2 Antigen Test to detect active SARS-CoV-2 infection, which has been submitted to the FDA for an EUA.

Research into the SARS-CoV-2 pandemic also requires the monitoring of the immune status of individuals. QIAGEN is the only company that has developed both an antibody and a T-cell test to track immune responses. In November, it also launched the QuantiFERON SARS-CoV-2 test (for research use only) that can detect T-cell responses in people who have had natural infection or vaccination.

“Serological testing for antibodies is central to identifying people who have been recently infected by the virus or have been infected in the recent past, especially those who did not show any symptoms and therefore might not know of an infection,” said Davide Manissero, Chief Medical Officer of QIAGEN. “As societies are now returning to normal daily routines, understanding the COVID-19 immunity in a population can help guide public health measures.”

Traditional rapid lateral-flow antibody tests are hard to automate and results can be hard to read. The QIAreach Anti-SARS-CoV-2 Total Test generates easy-to-read results on the digital eHub platform. Each QIAreach eHub can handle up to eight samples on eight eSticks simultaneously, with each eStick test running independently. QIAGEN is using the same platform to develop QIAreach^® QuantiFERON^®-TB, a new testing solution for identifying latent tuberculosis (TB) infections in low-resource regions.

Further information on QIAGEN’s response to the coronavirus outbreak can be found here.

About QIAGEN

QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies make these biomolecules visible and ready for analysis. Bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. Automation solutions tie these together in seamless and cost-effective workflows. QIAGEN provides solutions to more than 500,000 customers around the world in Molecular Diagnostics (human healthcare) and Life Sciences (academia, pharma R&D and industrial applications, primarily forensics). As of March 31, 2020, QIAGEN employed approximately 5,700 people in over 35 locations worldwide. Further information can be found at http://www.qiagen.com.

Forward-Looking Statement

Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN’s products, including those products used in the response to the COVID-19 pandemic, timing for launch and development, marketing and/or regulatory approvals, financial and operational outlook, growth and expansion, collaborations markets, strategy or operating results, including without limitation its expected adjusted net sales and adjusted diluted earnings results, are forward-looking, such statements are based on current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between customer classes, the commercial development of markets for our products to customers in academia, pharma, applied testing and molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN’s products (including fluctuations due to general economic conditions, the level and timing of customers’ funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors’ products; market acceptance of QIAGEN’s new products and the integration of acquired technologies and businesses; actions of governments, global or regional economic developments, weather or transportation delays, natural disasters, political or public health crises, including the breadth and duration of the COVID-19 pandemic and its impact on the demand for our products and other aspects of our business, or other force majeure events; as well as the possibility that expected benefits related to recent or pending acquisitions may not materialize as expected; and the other factors discussed under the heading “Risk Factors” contained in Item 3 of our most recent Annual Report on Form 20-F. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission.

Category: Corporate

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005959/en/

QIAGEN

Investor Relations

John Gilardi, +49 2103 29 11711

Phoebe Loh, +49 2103 29 11457

[email protected]

Public Relations

Thomas Theuringer, +49 2103 29 11826

Robert Reitze, +49 2103 29 11676

[email protected]

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