REDWOOD CITY, Calif., Feb. 14, 2019 (GLOBE NEWSWIRE) — Talend (NASDAQ: TLND), a global leader in cloud data integration and integrity solutions, today released financial results for the fourth quarter and fiscal year ended December 31, 2018.
“We finished 2018 with record fourth quarter subscription revenue of $48.4 million, up 38% year-over-over and grew total revenue for the full year by 38%,” said Mike Tuchen, Chief Executive Officer. “As we scale our business, we are increasingly focused on the cloud opportunity and have expanded our go to market capabilities with the addition of a self-service, frictionless channel to land new cloud customers. We believe we are entering 2019 well positioned to capture an increasing share of the data integration market.”
Key financial and operational highlights from the quarter:
- Achieved Annualized Recurring Revenue (“ARR”) of $198.1 million for the period ended December 31, 2018, representing growth of 33% from December 31, 2017.
- Talend Cloud, the Company’s SaaS offering, represented 25% of new ARR in the quarter and grew over 100% year-over-year for the tenth quarter in a row
- Record quarterly total revenue of $55.7 million, an increase of 34% year-over-year
- Quarterly subscription revenue of $48.4 million, an increase of 38% year-over-year, or 33% year-over-year adjusted to exclude the impact of adoption of ASC 606
- Total customer count crossed the 3,000 customer mark
- Dollar-based Net Expansion Rate reached 120% on a constant currency basis
- Generated $1.7 million of Free Cash Flow
These highlights are inclusive of Stitch apart from Dollar-based Net Expansion Rate, which the Company will continue to report excluding the contribution of monthly and pay-as-you-go contracts. The acquisition of Stitch, Inc. closed on November 9, 2018, and contributed $0.6 million of revenue during the quarter and accounted for 2% of ARR as of December 31, 2018.
Recent business highlights:
- Formed a strategic partnership with Databricks, enabling engineers to perform large scale data processing and analytics in the cloud using Apache Spark
- Announced fast, frictionless cloud data ingestion for Microsoft Azure’s SQL Data Warehouse with Talend’s Stitch Data Loader
- Named a 2018 Gartner Peer Insights Customers’ Choice for data integration tools based on end-user reviews and ratings
- Promoted Laurent Bride to CTO and COO, expanding his responsibilities as cloud operations become increasingly important
| Fourth Quarter and Fiscal Year 2018 Financial Highlights | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2017 ** | 2018 | 2017 ** | 2018 | |||||||||||||
| Revenue: | ||||||||||||||||
| Total Revenue | $ | 41,519 | $ | 55,690 | $ | 148,595 | $ | 204,323 | ||||||||
| Year-over-Year % Change | 36 | % | 34 | % | * | 40 | % | 38 | % | * | ||||||
| Subscription Revenue | $ | 35,164 | $ | 48,443 | $ | 125,898 | $ | 174,887 | ||||||||
| Year-over-Year % Change | 40 | % | 38 | % | * | 42 | % | 39 | % | * | ||||||
| Year-over-Year % Change – on a constant currency basis | 34 | % | 40 | % | 42 | % | 37 | % | ||||||||
| Operating margin | -26 | % | -24 | % | -19 | % | -20 | % | ||||||||
| Non-GAAP operating margin (1) | -20 | % | -9 | % | -14 | % | -8 | % | ||||||||
| Net loss: | ||||||||||||||||
| GAAP Net Loss | $ | (10,684 | ) | $ | (12,256 | ) | $ | (31,208 | ) | $ | (40,359 | ) | ||||
| Non-GAAP Net Loss (2) | $ | (8,138 | ) | $ | (3,892 | ) | $ | (22,673 | ) | $ | (15,539 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Net loss per share – basic and diluted | $ | (0.37 | ) | $ | (0.41 | ) | $ | (1.08 | ) | $ | (1.35 | ) | ||||
| Non-GAAP net loss per share | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.78 | ) | $ | (0.52 | ) | ||||
| Shares outstanding used in computing per share amounts – basic and diluted | 29,253 | 30,111 | 28,966 | 29,841 | ||||||||||||
| _________________ | ||||||||||||||||
| (1) Non-GAAP operating margin is calculated as non-GAAP loss from operations divided by total revenue. | ||||||||||||||||
| (2) Non-GAAP financial measures exclude stock-based compensation, amortization of acquired intangibles and transaction related expenses. | ||||||||||||||||
| * The growth rate includes the benefit from the adoption of ASC 606 which was adopted by the company on January 1, 2018. | ||||||||||||||||
| ** We have initially applied ASC 606 at January 1, 2018. Under the transition method chosen for ASC 606, the comparative information is not restated. | ||||||||||||||||
As previously announced, effective January 1, 2019, Talend began to file periodic reports and registration statements on U.S. domestic issuer forms with the Securities and Exchange Commission. Accordingly, the financial results and estimates provided herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). However, there is no difference in these financial results and estimates prepared in accordance with GAAP compared to such financial results and estimates prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board, and therefore the financial results and estimates provided herein are directly comparable to Talend’s prior disclosure on these metrics. For the year ended December 31, 2018, Talend’s Annual Report on Form 10-K will present results in accordance with GAAP.
A reconciliation of GAAP to non-GAAP financial measures is provided in the financial tables below. An explanation of these measures is also included below, under the heading Non-GAAP Financial Measures.
Financial Outlook
Talend’s outlook assumes similar business conditions and foreign exchange rates as of January 31, 2019 and is inclusive of the Stitch acquisition which closed on November 9, 2018.
First quarter of 2019:
- Total revenue is expected to be in the range of $56.0 million to $57.0 million.
- Loss from operations is expected to be in the range of $(18.9) million to $(17.9) million and non-GAAP loss from operations is expected to be in the range of $(9.3) million to $(8.3) million.
- Net loss is expected to be in the range of $(19.3) million to $(18.3) million and non-GAAP net loss is expected to be in the range of $(9.6) million to $(8.6) million.
- Net loss per basic and diluted share is expected to be in the range of $(0.64) to $(0.60) and non-GAAP net loss per share is expected to be in the range of $(0.32) to $(0.29).
- Basic and diluted weighted average share count of 30.3 million shares.
Full year 2019:
- Total revenue is expected to be in the range of $248. 0 million to $250.0 million.
- Loss from operations is expected to be in the range of $(80.3) million to $(78.3) million and non-GAAP loss from operations is expected to be in the range of $(27.3) million to $(25.3) million.
- Net loss is expected to be in the range of $(81.9) million to $(79.9) million and non-GAAP net loss is expected to be in the range of $(28.9) million to $(26.9) million.
- Net loss per basic and diluted share is expected to be in the range of $(2.67) to $(2.60) and non-GAAP net loss per share is expected to be in the range of $(0.94) to $(0.88).
- Basic and diluted weighted average share count of 30.7 million shares.
These statements are forward-looking and actual results may differ materially. Refer to the section under the heading Forward-Looking Statements below for information on the factors that could cause our actual results to differ materially. An explanation of non-GAAP measures is also included below under the heading Non-GAAP Financial Measures.
Conference Call Information
Talend will host a conference call and live webcast for analysts and investors at 4:30 p.m. Eastern time on February 14, 2019.
Parties in the United States and Canada can access the call by dialing (888) 394-8218, using conference code 1606788. International parties can access the call by dialing (323) 794-2588, using conference code 1606788.
The webcast will be accessible on Talend’s investor relations website at http://investor.talend.com for one year. A telephonic replay of the conference call will be available through February 19, 2019. To access the replay, parties in the United States and Canada should call (888) 203-1112 and enter conference code 1606788. International parties should call (719) 457-0820 and enter conference code 1606788.
New Lease Standard Under ASC 842
In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASC 842, Leases, which supersedes current lease standards under ASC 840. The financial information under the heading “Financial Outlook” above is prepared in accordance with ASC 842. The standard is effective for Talend for financial periods beginning on January 1, 2019, with the main change relating to the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. Talend will be required to capitalize and amortize lease assets associated with facility leases. Under the new guidance a portion of the rent expense which was charged to operations will be recognized as interest expense.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures.
Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Talend considers these non-GAAP financial measures to be important because they provide useful indicators of its performance and liquidity measures. These are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In addition, investors often use similar measures to evaluate the performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company’s operating performance. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure included in this release below.
Non-GAAP gross profit is calculated by adjusting gross profit to eliminate the impact of stock-based compensation expense and amortization of acquired intangibles.
Non-GAAP gross margin, expressed as a percentage, is calculated as non-GAAP gross profit divided by total revenue.
Non-GAAP loss from operations is calculated by adjusting loss from operations to eliminate the impact of stock-based compensation expense, amortization of acquired intangibles expense and transaction related expenses.
Non-GAAP operating margin, expressed as a percentage, is calculated as non-GAAP loss from operations divided by total revenue.
Non-GAAP net loss is calculated by adjusting net loss to eliminate the impact of stock-based compensation expense, amortization of acquired intangibles expense and transaction related expenses.
Non-GAAP cost of revenue is calculated by adjusting cost of revenue to eliminate the impact of stock-based compensation expense and amortization of acquired intangibles expense.
Non-GAAP operating expenses is calculated by adjusting operating expenses to eliminate the impact of stock-based compensation expense, amortization of acquired intangibles expense and transaction related expenses.
Non-GAAP sales and marketing expense is calculated by adjusting sales and marketing expense to eliminate the impact of stock-based compensation expense and amortization of acquired intangibles expense.
Non-GAAP research and development expense is calculated by adjusting research and development expense to eliminate the impact of stock-based compensation expense and amortization of acquired intangibles expense.
Non-GAAP general and administrative expense is calculated by adjusting general and administrative expense to eliminate the impact of stock-based compensation expense, amortization of acquired intangibles expense and transaction related expenses.
Transaction related expenses include non-recurring acquisition related costs and costs associated with follow-on offerings and the filing of a shelf-registration statement.
Free cash flow is defined as net cash from (used in) operating activities less cash used in investing activities for acquisition of property and equipment.
Subscription revenue growth on a constant currency basis represents subscription revenue adjusted to exclude foreign currency impacts. Subscription revenue on a constant currency basis is calculated by applying the average monthly currency rates for each month in the comparative period to the corresponding month in the current period. We believe the disclosure of subscription revenue in constant currency provides useful supplementary information to investors considering potential significant fluctuations in currency rates.
Annual recurring revenue (“ARR”) is defined as the annualized recurring value of all active contracts at the end of a reporting period. ARR includes subscriptions for use of installed software products and SaaS offerings, which includes Stitch, and excludes original equipment manufacturer (“OEM”) sales. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplied by twelve.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our anticipated operating results for the 2019 first quarter and fiscal year, our expectations regarding the evolution of our marketplace and the goals for our Talend Data Fabric, our ability to capture an increasing share of the cloud and big data integration market, our expectations regarding the impact of our collaborations with partners on our market, and our belief that we are well-positioned to capitalize on the growing trends of modern data technologies and cloud adoption. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to inherent risks, uncertainties and changes in circumstance that are difficult or impossible to predict. Consequently, you should not rely on these forward-looking statements. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such uncertainties, risks, and changes in circumstances, including without limitation risks and uncertainties related to our ability to continue to deliver and improve our products and successfully develop new products; customer acceptance and purchase of our existing products and new products, including conversion of bookings to sales; our ability to retain existing customers and generate new customers; the market for data integration solutions, particularly our cloud and big data integration solutions, not continuing to develop; competition from other products and services; and general market, political, economic and business conditions, including the fluctuation of foreign currency exchange rates.
The forward-looking statements contained in this press release are also subject to other risks and uncertainties, and the foregoing list of factors is not exclusive. Additional risks and uncertainties that could affect our financial and operating results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in our most recent filings with the Securities and Exchange Commission, including our most recent reports on Form 6-K and our Form 20-F filed with the SEC on March 5, 2018. Our SEC filings are available on the Investors section of Talend’s website at http://investor.talend.com and the SEC’s website at www.sec.gov. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements provided to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law.
About Talend
Talend (Nasdaq: TLND), a leader in cloud integration and integrity solutions, liberates data from legacy infrastructure and puts more of the right data to work for your business, faster. Talend Cloud delivers a single platform for data integration across public, private, and hybrid cloud, as well as on-premises environments, and enables greater collaboration between IT and business teams. Combined with an open, native, and extensible architecture for rapidly embracing market innovations, Talend allows you to cost-effectively meet the demands of ever-increasing data volumes, users, and use cases.
Over 3,000 global customers rely on Talend to put their data to work including GE, HP Inc., and Domino’s. Talend has been recognized as a leader in its field by leading analyst firms and industry publications including Forbes, InfoWorld, and SD Times. For more information, please visit www.talend.com and follow us on Twitter: @Talend.
Investor Contact:
Lisa Laukkanen or Lauren Sloane
The Blueshirt Group for Talend
ir@talend.com
415-217-2632
Media Contact:
Chris Taylor
Vice President, Corporate Communications
Ctaylor@Talend.com
650-268-502
| TALEND S.A. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER DATA | ||||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2017 * | 2018 | 2017 * | 2018 | |||||||||
| Revenue | ||||||||||||
| Subscriptions | $ | 35,164 | $ | 48,443 | $ | 125,898 | $ | 174,887 | ||||
| Professional services | 6,355 | 7,247 | 22,697 | 29,436 | ||||||||
| Total revenue | 41,519 | 55,690 | 148,595 | 204,323 | ||||||||
| Cost of revenue | ||||||||||||
| Subscriptions | 4,757 | 6,411 | 16,367 | 23,094 | ||||||||
| Professional services | 4,997 | 6,968 | 17,792 | 26,400 | ||||||||
| Total cost of revenue | 9,754 | 13,379 | 34,159 | 49,494 | ||||||||
| Gross profit | 31,765 | 42,311 | 114,436 | 154,829 | ||||||||
| Operating expenses | ||||||||||||
| Sales and marketing | 25,560 | 31,311 | 86,892 | 113,650 | ||||||||
| Research and development | 8,199 | 12,558 | 26,835 | 42,359 | ||||||||
| General and administrative | 8,711 | 11,566 | 29,446 | 40,357 | ||||||||
| Total operating expenses | 42,470 | 55,435 | 143,173 | 196,366 | ||||||||
| Loss from operations | (10,705 | ) | (13,124 | ) | (28,737 | ) | (41,537 | ) | ||||
| Other income (expense), net | 253 | 514 | (2,147 | ) | 855 | |||||||
| Loss before income tax expense | (10,452 | ) | (12,610 | ) | (30,884 | ) | (40,682 | ) | ||||
| Income tax benefit (expense) | (232 | ) | 354 | (324 | ) | 323 | ||||||
| Net loss | $ | (10,684 | ) | $ | (12,256 | ) | $ | (31,208 | ) | $ | (40,359 | ) |
| Shares outstanding used in computing per share amounts – basic and diluted | 29,253 | 30,111 | 28,966 | 29,841 | ||||||||
| Net loss per share – basic and diluted | $ | (0.37 | ) | $ | (0.41 | ) | $ | (1.08 | ) | $ | (1.35 | ) |
| UNAUDITED STOCK-BASED COMPENSATION AND AMORTIZATION OF ACQUIRED INTANGIBLES EXPENSE | ||||||||||||
| Total stock-based compensation and amortization of acquired intangibles expense included in the Unaudited Consolidated Statements of Operations is as follows: | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2017 * | 2018 | 2017 * | 2018 | |||||||||
| Cost of revenue – subscriptions | $ | 89 | $ | 507 | $ | 315 | $ | 1,432 | ||||
| Cost of revenue – professional services | 74 | 410 | 207 | 1,024 | ||||||||
| Sales and marketing | 577 | 2,526 | 2,271 | 7,198 | ||||||||
| Research and development | 739 | 2,495 | 1,613 | 7,693 | ||||||||
| General and administrative | 345 | 1,734 | 2,441 | 6,011 | ||||||||
| Total stock-based compensation and amortization of acquired intangibles expense | $ | 1,824 | $ | 7,672 | $ | 6,847 | $ | 23,358 | ||||
| * We have initially applied ASC 606 at January 1, 2018. Under the transition method chosen for ASC 606, the comparative information is not restated. | ||||||||||||
| TALEND S.A. | |||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
| (in thousands) | |||||||
| December 31, 2017 * | December 31, 2018 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 87,024 | $ | 33,740 | |||
| Accounts receivables | 57,129 | 67,531 | |||||
| Contract acquisition costs | — | 9,563 | |||||
| Other current assets | 8,311 | 9,825 | |||||
| Total current assets | 152,464 | 120,659 | |||||
| Non-current assets: | |||||||
| Contract acquisition costs | — | 19,390 | |||||
| Property and equipment, net | 3,473 | 6,335 | |||||
| Goodwill | 6,196 | 49,659 | |||||
| Intangible assets, net | 7,528 | 19,420 | |||||
| Other non-current assets | 3,137 | 3,661 | |||||
| Total non-current assets | 20,334 | 98,466 | |||||
| Total assets | $ | 172,798 | $ | 219,124 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 4,203 | $ | 5,759 | |||
| Accrued expenses and other current liabilities | 27,504 | 36,475 | |||||
| Contract liabilities – deferred revenue | 118,601 | 124,416 | |||||
| Short-tem debt | 1,188 | 208 | |||||
| Total current liabilities | 151,496 | 166,858 | |||||
| Non-current liabilities: | |||||||
| Deferred income taxes | — | 469 | |||||
| Other non-current liabilities | 787 | 950 | |||||
| Contract liabilities – deferred revenue | 21,618 | 25,731 | |||||
| Long-term debt | 7 | 676 | |||||
| Total non-current liabilities | 22,412 | 27,827 | |||||
| Total liabilities | 173,908 | 194,686 | |||||
| STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
| Ordinary shares, par value €0.08 per share | 3,059 | 3,128 | |||||
| Additional paid-in capital | 215,390 | 244,878 | |||||
| Accumulated other comprehensive income | 672 | 607 | |||||
| Other reserves | 49 | 138 | |||||
| Accumulated losses | (220,280 | ) | (224,312 | ) | |||
| Total stockholders’ equity (deficit) | (1,110 | ) | 24,439 | ||||
| Total liabilities and stockholders’ equity (deficit) | $ | 172,798 | $ | 219,124 | |||
| * We have initially applied ASC 606 at January 1, 2018. Under the transition method chosen for ASC 606, the comparative information is not restated. | |||||||
| TALEND S.A. | |||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in thousands) | |||||||
| Year Ended December 31, | |||||||
| 2017 * |
2018 | ||||||
| Cash flows (used in) from operating activities: | |||||||
| Net loss for the period | $ | (31,208 | ) | $ | (40,359 | ) | |
| Adjustments to reconcile net loss to net cash from operating activities: | |||||||
| Depreciation | 1,527 | 2,034 | |||||
| Amortization of intangible assets | 567 | 2,521 | |||||
| Unrealized loss foreign exchange | 1,751 | 134 | |||||
| Stock-based compensation | 6,280 | 20,837 | |||||
| Deferred income taxes | — | (327 | ) | ||||
| Income tax for the period | 324 | (323 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (16,533 | ) | (12,387 | ) | |||
| Other assets | (1,747 | ) | (6,569 | ) | |||
| Accounts payable and accrued expenses | 7,629 | 11,630 | |||||
| Contract liabilities – deferred revenue * | 29,089 | 26,040 | |||||
| Net cash from operating activities | (2,321 | ) | 3,231 | ||||
| Cash flows (used in) from investing activities: | |||||||
| Acquisition of property and equipment | (2,224 | ) | (5,006 | ) | |||
| Cash consideration for business acquisitions, net of cash acquired | (9,189 | ) | (59,493 | ) | |||
| Net cash used in investing activities | (11,413 | ) | (64,499 | ) | |||
| Cash flows (used in) from financing activities: | |||||||
| Proceeds from issuance of ordinary shares | 6,672 | 7,053 | |||||
| Proceeds from issuance of ordinary shares related to employee stock purchase plan | — | 1,805 | |||||
| Repayment of borrowings | (153 | ) | (242 | ) | |||
| Net cash from financing activities | 6,519 | 8,616 | |||||
| Net increase in cash and cash equivalents | (7,215 | ) | (52,652 | ) | |||
| Cash and cash equivalents at beginning of the period | 91,023 | 87,024 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 3,216 | (632 | ) | ||||
| Cash and cash equivalents at end of period | $ | 87,024 | $ | 33,740 | |||
| * The change in deferred revenue presented on the cash flow statement was impacted by ASC 606 and the foreign exchange impact from several of our foreign entities. | |||||||
New Revenue Recognition Standard Under ASC 606
Effective as of January 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers, which was issued by the FASB in May 2014. The financial information presented for the three months and year ended December 31, 2018 in this press release is prepared in accordance with ASC 606. We adopted the standard on a modified retrospective basis and under this transition method, the comparative information is not restated. The impact of adoption on our consolidated statement of operations are provided in the table below which allows for easier comparison to prior period results, reported under old revenue standards.
| For the three months ended December 31, 2018 | For the year ended December 31, 2018 | ||||||||||||||||||||||
| Balance Without Adoption of |
Effect of Change | Balance Without Adoption of |
Effect of Change | ||||||||||||||||||||
| As Reported | ASC 606 | Higher/(Lower) | As Reported | ASC 606 | Higher/(Lower) | ||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Subscriptions | $ | 48,443 | $ | 46,824 | $ | 1,619 | $ | 174,887 | $ | 170,419 | $ | 4,468 | |||||||||||
| Year-over-Year % Change | 38 | % | 33 | % | 39 | % | 35 | % | |||||||||||||||
| Operating margin | -24 | % | -33 | % | 9 | % | -20 | % | -25 | % | 5 | % | |||||||||||
| Non-GAAP operating margin | -9 | % | -17 | % | 9 | % | -8 | % | -13 | % | 5 | % | |||||||||||
| Net loss: | |||||||||||||||||||||||
| GAAP Net Loss | (12,256 | ) | (16,936 | ) | 4,680 | (40,359 | ) | (49,447 | ) | 9,088 | |||||||||||||
| Non-GAAP Net Loss | (3,892 | ) | (8,572 | ) | 4,680 | (15,539 | ) | (24,627 | ) | 9,088 | |||||||||||||
| Net loss per share: | |||||||||||||||||||||||
| Net loss per share – basic and diluted | $ | (0.41 | ) | $ | (0.56 | ) | $ | 0.16 | $ | (1.35 | ) | $ | (1.66 | ) | $ | 0.30 | |||||||
| Non-GAAP net loss per share | $ | (0.13 | ) | $ | (0.28 | ) | $ | 0.16 | $ | (0.52 | ) | $ | (0.83 | ) | $ | 0.30 | |||||||
| Shares outstanding used in computing per share amounts – basic and diluted | 30,111 | 30,111 | 29,841 | 29,841 | |||||||||||||||||||
| TALEND S.A. | |||||||||||||||
| GAAP to Non-GAAP Reconciliations | |||||||||||||||
| (In thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| The following tables detail the reconciliation of GAAP financial measures to non-GAAP financial measures included in this release: | |||||||||||||||
| Loss from operations: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| Loss from operations | $ | (10,705 | ) | $ | (13,124 | ) | $ | (28,737 | ) | $ | (41,537 | ) | |||
| Stock-based compensation expense | 1,497 | 6,616 | 6,280 | 20,837 | |||||||||||
| Amortization of acquired intangibles | 327 | 1,056 | 567 | 2,521 | |||||||||||
| Transaction related expenses | 722 | 694 | 1,688 | 1,464 | |||||||||||
| Non-GAAP loss from operations | $ | (8,159 | ) | $ | (4,758 | ) | $ | (20,202 | ) | $ | (16,715 | ) | |||
| Non-GAAP operating margin | -20 | % | -9 | % | -14 | % | -8 | % | |||||||
| Net loss: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| Net loss | $ | (10,684 | ) | $ | (12,256 | ) | $ | (31,208 | ) | $ | (40,359 | ) | |||
| Stock-based compensation expense | 1,497 | 6,616 | 6,280 | 20,837 | |||||||||||
| Amortization of acquired intangibles | 327 | 1,056 | 567 | 2,521 | |||||||||||
| Transaction related expenses | 722 | 694 | 1,688 | 1,464 | |||||||||||
| Non-GAAP net loss | $ | (8,138 | ) | $ | (3,890 | ) | $ | (22,673 | ) | $ | (15,537 | ) | |||
| Share count: | |||||||||||||||
| Weighted-average shares outstanding – basic and diluted | 29,253 | 30,111 | 28,966 | 29,841 | |||||||||||
| Net loss per share: | |||||||||||||||
| Net loss per share – basic and diluted | $ | (0.37 | ) | $ | (0.41 | ) | $ | (1.08 | ) | $ | (1.35 | ) | |||
| Non-GAAP net loss per share | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.78 | ) | $ | (0.52 | ) | |||
| Gross profit: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| Gross profit | $ | 31,765 | $ | 42,311 | $ | 114,436 | $ | 154,829 | |||||||
| Stock-based compensation expense | 163 | 917 | 522 | 2,456 | |||||||||||
| Amortization of acquired intangibles | – | – | – | – | |||||||||||
| Non-GAAP gross profit | $ | 31,928 | $ | 43,228 | $ | 114,958 | $ | 157,285 | |||||||
| GAAP gross margin | 77 | % | 76 | % | 77 | % | 76 | % | |||||||
| Non-GAAP gross margin | 77 | % | 78 | % | 77 | % | 77 | % | |||||||
| Cost of revenue: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| Cost of revenue | $ | (9,754 | ) | $ | (13,379 | ) | $ | (34,159 | ) | $ | (49,494 | ) | |||
| Stock-based compensation expense | 163 | 917 | 522 | 2,456 | |||||||||||
| Amortization of acquired intangibles | – | – | – | – | |||||||||||
| Non-GAAP cost of revenue | $ | (9,591 | ) | $ | (12,462 | ) | $ | (33,637 | ) | $ | (47,038 | ) | |||
| Operating expenses: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| Operating expenses | $ | (42,470 | ) | $ | (55,435 | ) | $ | (143,173 | ) | $ | (196,366 | ) | |||
| Stock-based compensation expense | 1,334 | 5,699 | 5,758 | 18,381 | |||||||||||
| Amortization of acquired intangibles | 327 | 1,056 | 567 | 2,521 | |||||||||||
| Transaction related expenses | 722 | 694 | 1,688 | 1,464 | |||||||||||
| Non-GAAP operating expenses | $ | (40,087 | ) | $ | (47,986 | ) | $ | (135,160 | ) | $ | (174,000 | ) | |||
| Sales and marketing expense: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| Sales and marketing expense | $ | (25,560 | ) | $ | (31,311 | ) | $ | (86,892 | ) | $ | (113,650 | ) | |||
| Stock-based compensation expense | 577 | 2,526 | 2,271 | 7,198 | |||||||||||
| Amortization of acquired intangibles | – | – | – | – | |||||||||||
| Non-GAAP sales and marketing expense | $ | (24,983 | ) | $ | (28,785 | ) | $ | (84,621 | ) | $ | (106,452 | ) | |||
| Research and development expense: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| Research and development expense | $ | (8,199 | ) | $ | (12,558 | ) | $ | (26,835 | ) | $ | (42,359 | ) | |||
| Stock-based compensation expense | 491 | 1,766 | 1,263 | 5,808 | |||||||||||
| Amortization of acquired intangibles | 248 | 729 | 350 | 1,885 | |||||||||||
| Non-GAAP research and development expense | $ | (7,460 | ) | $ | (10,063 | ) | $ | (25,222 | ) | $ | (34,666 | ) | |||
| General and administrative expense: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | ||||||||||||
| General and administrative expense | $ | (8,711 | ) | $ | (11,566 | ) | $ | (29,446 | ) | $ | (40,357 | ) | |||
| Stock-based compensation expense | 266 | 1,407 | 2,224 | 5,375 | |||||||||||
| Amortization of acquired intangibles | 79 | 327 | 217 | 636 | |||||||||||
| Transaction related expenses | 722 | 694 | 1,688 | 1,464 | |||||||||||
| Non-GAAP general and administrative expense | $ | (7,644 | ) | $ | (9,138 | ) | $ | (25,317 | ) | $ | (32,882 | ) | |||
| TALEND S.A. | ||||||||||||||
| Free Cash Flow | ||||||||||||||
| (In thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| The following table details our free cash flow for the three and nine months ended December 31, 2017 and 2018, and a reconciliation to the most directly comparable GAAP measure: | ||||||||||||||
| Free cash flow: | ||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2017 * | 2018 | 2017 * | 2018 | |||||||||||
| Net cash (used in) from operating activities | (1,459 | ) | 3,836 | (2,321 | ) | 3,231 | ||||||||
| Less: Acquisition of property and equipment | 551 | 2,100 | 2,224 | 5,006 | ||||||||||
| Free cash flow | $ | (2,009 | ) | $ | 1,736 | $ | (4,545 | ) | $ | (1,775 | ) | |||
| * We have initially applied ASC 606 at January 1, 2018. Under the transition method chosen for ASC 606, the comparative information is not restated. | ||||||||||||||
| TALEND S.A. | ||||||||
| Constant Currency Reconciliation | ||||||||
| (In thousands) | ||||||||
| (unaudited) | ||||||||
| The following table details our constant currency reconciliation for the three months ended December 31, 2018 to the most directly comparable GAAP measure: | ||||||||
| Three Months Ended December 31, | Year-over-Year Change |
|||||||
| 2017 * | 2018 | |||||||
| Subscription revenue as reported | 35,164 | 48,443 | 38 | % | ||||
| Conversion impact U.S. Dollar/other currencies | – | 782 | ||||||
| Subscription revenue on a constant currency basis | $ | 35,164 | $ | 49,225 | 40 | % | ||
| * We have initially applied ASC 606 at January 1, 2018. Under the transition method chosen for ASC 606, the comparative information is not restated. | ||||||||
| TALEND S.A. | ||||||||||||||||
| GAAP to Non-GAAP Reconciliations for EPS Guidance | ||||||||||||||||
| (In millions) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| The following tables detail the reconciliation of GAAP financial measures to non-GAAP financial measures included in this release: | ||||||||||||||||
| Guidance for the first quarter and full year 2019: | ||||||||||||||||
| Three Months Ended March 31, 2019 | Year Ended December 31, 2019 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Loss from operations | $ | (18.9 | ) | $ | (17.9 | ) | $ | (80.3 | ) | $ | (78.3 | ) | ||||
| Stock-based compensation expense | 8.3 | 8.3 | 47.3 | 47.3 | ||||||||||||
| Amortization of acquired intangibles | 1.4 | 1.4 | 5.7 | 5.7 | ||||||||||||
| Non-GAAP loss from operations | $ | (9.3 | ) | $ | (8.3 | ) | $ | (27.3 | ) | $ | (25.3 | ) | ||||
| Three Months Ended March 31, 2019 | Year Ended December 31, 2019 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Net loss | $ | (19.3 | ) | $ | (18.3 | ) | $ | (81.9 | ) | $ | (79.9 | ) | ||||
| Stock-based compensation expense | 8.3 | 8.3 | 47.3 | 47.3 | ||||||||||||
| Amortization of acquired intangibles | 1.4 | 1.4 | 5.7 | 5.7 | ||||||||||||
| Transaction related expenses | – | – | – | – | ||||||||||||
| Non-GAAP net loss | $ | (9.6 | ) | $ | (8.6 | ) | $ | (28.9 | ) | $ | (26.9 | ) | ||||
| Shares outstanding used in computing GAAP and Non-GAAP per share amounts | 30.3 | 30.3 | 30.7 | 30.7 | ||||||||||||
| Net loss per share: | ||||||||||||||||
| Net loss per share – basic and diluted | $ | (0.64 | ) | $ | (0.60 | ) | $ | (2.67 | ) | $ | (2.60 | ) | ||||
| Non-GAAP net loss per share | $ | (0.32 | ) | $ | (0.29 | ) | $ | (0.94 | ) | $ | (0.88 | ) | ||||
| Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. | ||||||||||||||||