Delaware | 000-25826 | 77-0201147 |
(State or other jurisdiction of incorporation) | Commission File Number | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.001 per share | HLIT | The NASDAQ Stock Market LLC |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Description | ||
99.1 | Press release of Harmonic Inc. dated February 3, 2020, entitled “Harmonic Announces Fourth Quarter and Fiscal 2019 Results.” |
Date: February 3, 2020 | HARMONIC INC. | |||||
By: | /s/ Sanjay Kalra | |||||
Sanjay Kalra | ||||||
Chief Financial Officer |
• | Revenue: $122.2 million, up 7.5% year over year. |
• | SaaS and service revenue: $36.3 million, up 18.9% year over year. |
• | Gross margin: GAAP 50.5% and non-GAAP 52.3%, compared to GAAP 53.1% and non-GAAP 54.5% in the year ago period. |
• | Cable Access segment revenue: $43.0 million, up 78.3% year over year. |
• | Video segment gross margin: 60.0%, compared to 57.5% in the year ago period. |
• | Operating income: GAAP income $6.7 million and non-GAAP income $14.8 million, compared to GAAP income $7.3 million and non-GAAP income $12.7 million in the year ago period. |
• | EPS: GAAP net income per share 6 cents and non-GAAP net income per share 12 cents, compared to GAAP net income per share 4 cents and non-GAAP net income per share 11 cents in the year ago period. |
• | Cash: $93.1 million, up $27.1 million year over year. |
• | CableOS solution commercially deployed with 23 customers, up over 20% quarter over quarter. |
• | Initial multi-million dollar CableOS purchase orders received from two new international Tier 1 operators. |
• | Video SaaS customer base increased from 36 to 48 customers, up 33% quarter over quarter and 153% year over year. |
• | Video SaaS annual recurring revenue of $16.3 million, up 70% year over year. |
GAAP | Non-GAAP | |||||||||||||||||||||||
Key Financial Results | Q4 2019 | Q3 2019 | Q4 2018 | Q4 2019 | Q3 2019 | Q4 2018 | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||
Net revenue | $ | 122.2 | $ | 115.7 | $ | 113.7 | $ | 122.2 | $ | 115.7 | $ | 113.6 | ||||||||||||
Net income | $ | 5.6 | $ | 11.7 | $ | 3.3 | $ | 12.1 | $ | 24.6 | $ | 9.7 | ||||||||||||
Diluted EPS | $ | 0.06 | $ | 0.12 | $ | 0.04 | $ | 0.12 | $ | 0.25 | $ | 0.11 | ||||||||||||
Other Financial Information | Q4 2019 | Q3 2019 | Q4 2018 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Bookings for the quarter | $ | 140.1 | $ | 126.5 | $ | 92.8 | ||||||||||||||||||
Backlog and deferred revenue as of quarter end | $ | 210.2 | $ | 192.5 | $ | 186.4 | ||||||||||||||||||
Cash and cash equivalents as of quarter end | $ | 93.1 | $ | 66.7 | $ | 66.0 |
GAAP Financial Guidance | Q1 2020 | 2020 | |||||||||||||||
Low | High | Low | High | ||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||
Net Revenue | $ | 80.0 | $ | 90.0 | $ | 390.0 | $ | 430.0 | |||||||||
Video | $ | 60.0 | $ | 65.0 | $ | 260.0 | $ | 280.0 | |||||||||
Cable Access | $ | 20.0 | $ | 25.0 | $ | 130.0 | $ | 150.0 | |||||||||
Gross Margin % | 47.5 | % | 49.0 | % | 49.0 | % | 54.0 | % | |||||||||
Operating Expenses | $ | 55.5 | $ | 57.5 | $ | 214.0 | $ | 226.5 | |||||||||
Operating Income (Loss) | $ | (19.5 | ) | $ | (11.0 | ) | $ | (24.0 | ) | $ | 5.0 | ||||||
Tax Expense | $ | 0.7 | $ | 0.7 | $ | 2.9 | $ | 2.9 | |||||||||
EPS | $ | (0.24 | ) | $ | (0.16 | ) | $ | (0.40 | ) | $ | (0.11 | ) | |||||
Shares | 95.8 | 95.8 | 97.7 | 97.7 | |||||||||||||
Cash | $ | 70.0 | $ | 80.0 | $ | 50.0 | $ | 60.0 |
Non-GAAP Financial Guidance | Q1 2020 | 2020 | |||||||||||||||
Low | High | Low | High | ||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||
Net Revenue | $ | 80.0 | $ | 90.0 | $ | 390.0 | $ | 430.0 | |||||||||
Video | $ | 60.0 | $ | 65.0 | $ | 260.0 | $ | 280.0 | |||||||||
Cable Access | $ | 20.0 | $ | 25.0 | $ | 130.0 | $ | 150.0 | |||||||||
Gross Margin % | 50.0 | % | 52.0 | % | 50.0 | % | 55.0 | % | |||||||||
Operating Expenses | $ | 48.0 | $ | 50.0 | $ | 190.0 | $ | 202.0 | |||||||||
Operating Income (Loss) | $ | (9.5 | ) | $ | (1.5 | ) | $ | 5.0 | $ | 34.0 | |||||||
Tax rate | 10 | % | 10 | % | 10 | % | 10 | % | |||||||||
EPS | $ | (0.10 | ) | $ | (0.03 | ) | $ | 0.00 | $ | 0.26 | |||||||
Shares | 95.8 | 95.8 | 97.7 | 101.2 | |||||||||||||
Cash | $ | 70.0 | $ | 80.0 | $ | 50.0 | $ | 60.0 |
Sanjay Kalra | Nicole Noutsios |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | Harmonic Inc. |
+1.408.490.6031 | +1.510.315.1003 |
December 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 93,058 | $ | 65,989 | |||
Accounts receivable, net | 88,500 | 81,795 | |||||
Inventories | 29,042 | 25,638 | |||||
Prepaid expenses and other current assets | 40,762 | 23,280 | |||||
Total current assets | 251,362 | 196,702 | |||||
Property and equipment, net | 22,928 | 22,321 | |||||
Goodwill | 239,780 | 240,618 | |||||
Intangibles, net | 4,461 | 12,817 | |||||
Other long-term assets | 68,796 | 38,377 | |||||
Total assets | $ | 587,327 | $ | 510,835 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 6,713 | $ | 7,175 | |||
Accounts payable | 40,933 | 33,778 | |||||
Income taxes payable | 1,226 | 1,099 | |||||
Deferred revenue | 37,117 | 41,592 | |||||
Accrued and other current liabilities | 62,535 | 52,761 | |||||
Total current liabilities | 148,524 | 136,405 | |||||
Convertible notes, long-term | 132,004 | 114,808 | |||||
Other debts and capital lease obligations, long-term | 10,511 | 12,684 | |||||
Income taxes payable, long-term | 178 | 460 | |||||
Other non-current liabilities | 41,254 | 18,228 | |||||
Total liabilities | $ | 332,471 | $ | 282,585 | |||
Convertible notes | 2,410 | — | |||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 150,000 shares authorized; 91,875 and 87,057 shares issued and outstanding at December 31, 2019 and 2018, respectively | 92 | 87 | |||||
Additional paid-in capital | 2,327,359 | 2,296,795 | |||||
Accumulated deficit | (2,071,940 | ) | (2,067,416 | ) | |||
Accumulated other comprehensive loss | (3,065 | ) | (1,216 | ) | |||
Total stockholders’ equity | 252,446 | 228,250 | |||||
Total liabilities and stockholders’ equity | $ | 587,327 | $ | 510,835 |
Three months ended | Year ended | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Revenue: | |||||||||||||||
Appliance and integration | $ | 85,933 | $ | 83,179 | $ | 275,797 | $ | 287,564 | |||||||
SaaS and service | 36,245 | 30,476 | 127,077 | 115,994 | |||||||||||
Total net revenue | 122,178 | 113,655 | 402,874 | 403,558 | |||||||||||
Cost of revenue: | |||||||||||||||
Appliance and integration | 47,107 | 42,289 | 130,284 | 148,472 | |||||||||||
SaaS and service | 13,376 | 11,045 | 49,578 | 45,877 | |||||||||||
Total cost of revenue | 60,483 | 53,334 | 179,862 | 194,349 | |||||||||||
Total gross profit | 61,695 | 60,321 | 223,012 | 209,209 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 21,703 | 21,913 | 84,614 | 89,163 | |||||||||||
Selling, general and administrative | 30,557 | 30,078 | 119,035 | 118,952 | |||||||||||
Amortization of intangibles | 782 | 791 | 3,139 | 3,187 | |||||||||||
Restructuring and related charges | 1,947 | 214 | 3,141 | 2,918 | |||||||||||
Total operating expenses | 54,989 | 52,996 | 209,929 | 214,220 | |||||||||||
Income (loss) from operations | 6,706 | 7,325 | 13,083 | (5,011 | ) | ||||||||||
Interest expense, net | (2,789 | ) | (2,909 | ) | (11,651 | ) | (11,401 | ) | |||||||
Loss on debt extinguishment | — | — | (5,695 | ) | — | ||||||||||
Other income (expense), net | — | 162 | (2,333 | ) | (536 | ) | |||||||||
Income (loss) before income taxes | 3,917 | 4,578 | (6,596 | ) | (16,948 | ) | |||||||||
Provision for (benefit from) income taxes | (1,653 | ) | 1,248 | (672 | ) | 4,087 | |||||||||
Net income (loss) | $ | 5,570 | $ | 3,330 | $ | (5,924 | ) | $ | (21,035 | ) | |||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | 0.06 | $ | 0.04 | $ | (0.07 | ) | $ | (0.25 | ) | |||||
Diluted | $ | 0.06 | $ | 0.04 | $ | (0.07 | ) | $ | (0.25 | ) | |||||
Shares used in per share calculations: | |||||||||||||||
Basic | 91,124 | 86,846 | 89,575 | 85,615 | |||||||||||
Diluted | 97,499 | 89,028 | 89,575 | 85,615 |
Year ended | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (5,924 | ) | $ | (21,035 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Amortization of intangibles | 8,319 | 8,367 | |||||
Depreciation | 11,287 | 12,971 | |||||
Stock-based compensation | 12,074 | 17,289 | |||||
Amortization of discount on convertible debt | 6,756 | 6,060 | |||||
Provision for non-cash warrant | 13,576 | 1,178 | |||||
Restructuring, asset impairment and loss on retirement of fixed assets | 124 | 1,491 | |||||
Loss on debt extinguishment | 5,695 | — | |||||
Foreign currency adjustments | (290 | ) | (1,906 | ) | |||
Deferred income taxes, net | (2,076 | ) | 661 | ||||
Provision for doubtful accounts, returns and discounts | 1,500 | 2,521 | |||||
Provision for excess and obsolete inventories | 1,479 | 1,649 | |||||
Other non-cash adjustments, net | 1,225 | 407 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (8,388 | ) | (14,700 | ) | |||
Inventories | (4,819 | ) | (2,045 | ) | |||
Prepaid expenses and other assets | (3,347 | ) | 3,227 | ||||
Accounts payable | 5,086 | 1,018 | |||||
Deferred revenues | (3,436 | ) | (4,808 | ) | |||
Income taxes payable | (136 | ) | 440 | ||||
Accrued and other liabilities | (7,410 | ) | (501 | ) | |||
Net cash provided by operating activities | 31,295 | 12,284 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of investments | — | 104 | |||||
Purchases of property and equipment | (10,328 | ) | (7,044 | ) | |||
Net cash used in investing activities | (10,328 | ) | (6,940 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from convertible debt | 115,500 | — | |||||
Payments of convertible debt | (109,603 | ) | — | ||||
Payment of convertible debt issuance costs | (4,277 | ) | — | ||||
Proceeds from other debts and finance leases | 4,684 | 5,066 | |||||
Repayment of other debts and finance leases | (6,913 | ) | (7,132 | ) | |||
Proceeds from common stock issued to employees | 8,406 | 4,947 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,492 | ) | (230 | ) | |||
Net cash provided by financing activities | 6,305 | 2,651 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (203 | ) | (763 | ) | |||
Net increase in cash, cash equivalents and restricted cash | 27,069 | 7,232 | |||||
Cash, cash equivalents and restricted cash, beginning of the year | 65,989 | 58,757 | |||||
Cash, cash equivalents and restricted cash, end of the year | $ | 93,058 | $ | 65,989 |
Three months ended | ||||||||||||||||||||||||||||||||
December 31, 2019 | September 27, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
GAAP | Adjustment(1) | Non-GAAP | GAAP | Adjustment(1) | Non-GAAP | GAAP | Adjustment(1) | Non-GAAP | ||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||||||||
Americas | $ | 68,869 | $ | — | $ | 68,869 | 56% | $ | 78,699 | $ | — | $ | 78,699 | 68% | $ | 63,007 | $ | (7 | ) | $ | 63,000 | 55% | ||||||||||
EMEA | 39,874 | — | 39,874 | 33% | 24,322 | — | 24,322 | 21% | 25,880 | — | 25,880 | 23% | ||||||||||||||||||||
APAC | 13,435 | — | 13,435 | 11% | 12,704 | — | 12,704 | 11% | 24,768 | — | 24,768 | 22% | ||||||||||||||||||||
Total | $ | 122,178 | $ | — | $ | 122,178 | 100% | $ | 115,725 | $ | — | $ | 115,725 | 100% | $ | 113,655 | $ | (7 | ) | $ | 113,648 | 100% | ||||||||||
Market | ||||||||||||||||||||||||||||||||
Service Provider | $ | 83,976 | $ | — | $ | 83,976 | 69% | $ | 77,886 | $ | — | $ | 77,886 | 67% | $ | 80,325 | $ | (7 | ) | $ | 80,318 | 71% | ||||||||||
Broadcast and Media | 38,202 | — | 38,202 | 31% | 37,839 | — | 37,839 | 33% | 33,330 | — | 33,330 | 29% | ||||||||||||||||||||
Total | $ | 122,178 | $ | — | $ | 122,178 | 100% | $ | 115,725 | $ | — | $ | 115,725 | 100% | $ | 113,655 | $ | (7 | ) | $ | 113,648 | 100% |
Twelve months ended | |||||||||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||
GAAP | Adjustment(1) | Non-GAAP | GAAP | Adjustment(1) | Non-GAAP | ||||||||||||||||
Geography | |||||||||||||||||||||
Americas | $ | 224,193 | $ | 48 | $ | 224,241 | 56% | $ | 218,900 | $ | 1,178 | $ | 220,078 | 54% | |||||||
EMEA | 117,477 | — | 117,477 | 29% | 107,074 | — | 107,074 | 27% | |||||||||||||
APAC | 61,204 | — | 61,204 | 15% | 77,584 | — | 77,584 | 19% | |||||||||||||
Total | $ | 402,874 | $ | 48 | $ | 402,922 | 100% | $ | 403,558 | $ | 1,178 | $ | 404,736 | 100% | |||||||
Market | |||||||||||||||||||||
Service Provider | $ | 249,512 | $ | 48 | $ | 249,560 | 62% | $ | 253,421 | $ | 1,178 | $ | 254,599 | 63% | |||||||
Broadcast and Media | 153,362 | — | 153,362 | 38% | 150,137 | — | 150,137 | 37% | |||||||||||||
Total | $ | 402,874 | $ | 48 | $ | 402,922 | 100% | $ | 403,558 | $ | 1,178 | $ | 404,736 | 100% |
Three months ended December 31, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 79,172 | $ | 43,006 | $ | 122,178 | $ | — | $ | 122,178 | |||||||||
Gross profit | 47,463 | 16,492 | 63,955 | (2,260 | ) | 61,695 | |||||||||||||
Gross margin% | 60.0 | % | 38.3 | % | 52.3 | % | 50.5 | % | |||||||||||
Operating income | 11,105 | 3,649 | 14,754 | (8,048 | ) | 6,706 | |||||||||||||
Operating margin% | 14.0 | % | 8.5 | % | 12.1 | % | 5.5 | % | |||||||||||
Three months ended September 27, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 60,055 | $ | 55,670 | $ | 115,725 | $ | — | $ | 115,725 | |||||||||
Gross profit | 34,646 | 42,925 | 77,571 | (2,031 | ) | 75,540 | |||||||||||||
Gross margin% | 57.7 | % | 77.1 | % | 67.0 | % | 65.3 | % | |||||||||||
Operating income (loss) | (1,696 | ) | 31,611 | 29,915 | (7,366 | ) | 22,549 | ||||||||||||
Operating margin% | (2.8 | )% | 56.8 | % | 25.9 | % | 19.5 | % | |||||||||||
Three months ended December 31, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 89,528 | $ | 24,120 | $ | 113,648 | $ | 7 | * | $ | 113,655 | ||||||||
Gross profit | 51,449 | 10,509 | 61,958 | (1,637 | ) | 60,321 | |||||||||||||
Gross margin% | 57.5 | % | 43.6 | % | 54.5 | % | 53.1 | % | |||||||||||
Operating income (loss) | 12,678 | — | 12,678 | (5,353 | ) | 7,325 | |||||||||||||
Operating margin% | 14.2 | % | — | % | 11.2 | % | 6.4 | % | |||||||||||
Twelve months ended December 31, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 278,028 | $ | 124,894 | $ | 402,922 | $ | (48 | ) | * | $ | 402,874 | |||||||
Gross profit | 162,156 | 68,596 | 230,752 | (7,740 | ) | 223,012 | |||||||||||||
Gross margin% | 58.3 | % | 54.9 | % | 57.3 | % | 55.4 | % | |||||||||||
Operating income | 15,837 | 22,219 | 38,056 | (24,973 | ) | 13,083 | |||||||||||||
Operating margin% | 5.7 | % | 17.8 | % | 9.4 | % | 3.2 | % | |||||||||||
Twelve months ended December 31, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 313,828 | $ | 90,908 | $ | 404,736 | $ | (1,178 | ) | * | $ | 403,558 | |||||||
Gross profit | 178,170 | 40,207 | 218,377 | (9,168 | ) | 209,209 | |||||||||||||
Gross margin% | 56.8 | % | 44.2 | % | 54.0 | % | 51.8 | % | |||||||||||
Operating income (loss) | 26,170 | (578 | ) | 25,592 | (30,603 | ) | (5,011 | ) | |||||||||||
Operating margin% | 8.3 | % | (0.6 | )% | 6.3 | % | (1.2 | )% |
Three months ended December 31, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income | |||||||||||||
GAAP | $ | 122,178 | $ | 61,695 | $ | 54,989 | $ | 6,706 | $ | (2,789 | ) | $ | 5,570 | |||||
Stock-based compensation | — | 297 | (3,059 | ) | 3,356 | — | 3,356 | |||||||||||
Amortization of intangibles | — | 1,295 | (782 | ) | 2,077 | — | 2,077 | |||||||||||
Restructuring and related charges | — | 668 | (1,947 | ) | 2,615 | — | 2,615 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,796 | 1,796 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (3,303 | ) | |||||||||||
Total adjustments | — | 2,260 | (5,788 | ) | 8,048 | 1,796 | 6,541 | |||||||||||
Non-GAAP | $ | 122,178 | $ | 63,955 | $ | 49,201 | $ | 14,754 | $ | (993 | ) | $ | 12,111 | |||||
As a % of revenue (GAAP) | 50.5 | % | 45.0 | % | 5.5 | % | (2.3 | )% | 4.6 | % | ||||||||
As a % of revenue (Non-GAAP) | 52.3 | % | 40.3 | % | 12.1 | % | (0.8 | )% | 9.9 | % | ||||||||
Diluted net income per share: | ||||||||||||||||||
Diluted net income per share-GAAP | $ | 0.06 | ||||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.12 | ||||||||||||||||
Shares used to compute diluted net income per share: | ||||||||||||||||||
GAAP and Non-GAAP | 97,499 | |||||||||||||||||
Three months ended September 27, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income | |||||||||||||
GAAP | $ | 115,725 | $ | 75,540 | $ | 52,991 | $ | 22,549 | $ | (10,289 | ) | $ | 11,657 | |||||
Stock-based compensation | — | 405 | (3,689 | ) | 4,094 | — | 4,094 | |||||||||||
Amortization of intangibles | — | 1,295 | (785 | ) | 2,080 | — | 2,080 | |||||||||||
Restructuring and related charges | — | 331 | (861 | ) | 1,192 | — | 1,192 | |||||||||||
Loss on convertible debt extinguishment | — | — | — | — | 5,695 | 5,695 | ||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 2,625 | 2,625 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (2,751 | ) | |||||||||||
Total adjustments | — | 2,031 | (5,335 | ) | 7,366 | 8,320 | 12,935 | |||||||||||
Non-GAAP | $ | 115,725 | $ | 77,571 | $ | 47,656 | $ | 29,915 | $ | (1,969 | ) | $ | 24,592 | |||||
As a % of revenue (GAAP) | 65.3 | % | 45.8 | % | 19.5 | % | (8.9 | )% | 10.1 | % | ||||||||
As a % of revenue (Non-GAAP) | 67.0 | % | 41.2 | % | 25.9 | % | (1.7 | )% | 21.3 | % | ||||||||
Diluted net income per share: | ||||||||||||||||||
Diluted net income per share-GAAP | $ | 0.12 | ||||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.25 | ||||||||||||||||
Shares used to compute diluted net income per share: | ||||||||||||||||||
GAAP and Non-GAAP | 97,596 | |||||||||||||||||
Three months ended December 31, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income | |||||||||||||
GAAP | $ | 113,655 | $ | 60,321 | $ | 52,996 | $ | 7,325 | $ | (2,747 | ) | $ | 3,330 | |||||
Accounting impact related to warrant amortization | (7 | ) | (7 | ) | — | (7 | ) | — | (7 | ) | ||||||||
Stock-based compensation | — | 376 | (2,711 | ) | 3,087 | — | 3,087 | |||||||||||
Amortization of intangibles | — | 1,295 | (791 | ) | 2,086 | — | 2,086 | |||||||||||
Restructuring and related charges | — | (27 | ) | (214 | ) | 187 | — | 187 | ||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,577 | 1,577 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (593 | ) | |||||||||||
Total adjustments | (7 | ) | 1,637 | (3,716 | ) | 5,353 | 1,577 | 6,337 | ||||||||||
Non-GAAP | $ | 113,648 | $ | 61,958 | $ | 49,280 | $ | 12,678 | $ | (1,170 | ) | $ | 9,667 | |||||
As a % of revenue (GAAP) | 53.1 | % | 46.6 | % | 6.4 | % | (2.4 | )% | 2.9 | % | ||||||||
As a % of revenue (Non-GAAP) | 54.5 | % | 43.4 | % | 11.2 | % | (1.0 | )% | 8.5 | % | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net income per share-GAAP | $ | 0.04 | ||||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.11 | ||||||||||||||||
Shares used to compute diluted net income per share: | ||||||||||||||||||
GAAP and Non-GAAP | 89,028 | |||||||||||||||||
Twelve months ended December 31, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income (Loss) | |||||||||||||
GAAP | $ | 402,874 | $ | 223,012 | $ | 209,929 | $ | 13,083 | $ | (19,679 | ) | $ | (5,924 | ) | ||||
Accounting impact related to warrant amortization | 48 | 48 | — | 48 | — | 48 | ||||||||||||
Stock-based compensation | — | 1,121 | (10,953 | ) | 12,074 | — | 12,074 | |||||||||||
Amortization of intangibles | — | 5,180 | (3,139 | ) | 8,319 | — | 8,319 | |||||||||||
Restructuring and related charges | — | 1,391 | (3,141 | ) | 4,532 | — | 4,532 | |||||||||||
Loss on debt extinguishment | — | — | — | — | 5,695 | 5,695 | ||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 7,683 | 7,683 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (4,482 | ) | |||||||||||
Total adjustments | 48 | 7,740 | (17,233 | ) | 24,973 | 13,378 | 33,869 | |||||||||||
Non-GAAP | $ | 402,922 | $ | 230,752 | $ | 192,696 | $ | 38,056 | $ | (6,301 | ) | $ | 27,945 | |||||
As a % of revenue (GAAP) | 55.4 | % | 52.1 | % | 3.2 | % | (4.9 | )% | (1.5 | )% | ||||||||
As a % of revenue (Non-GAAP) | 57.3 | % | 47.8 | % | 9.4 | % | (1.6 | )% | 6.9 | % | ||||||||
Diluted net income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.07 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.30 | ||||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP | 89,575 | |||||||||||||||||
Non-GAAP | 93,830 |
Twelve months ended December 31, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating expense, net | Net Loss | |||||||||||||
GAAP | $ | 403,558 | $ | 209,209 | $ | 214,220 | $ | (5,011 | ) | $ | (11,937 | ) | $ | (21,035 | ) | |||
Accounting impact related to warrant amortization | 1,178 | 1,178 | — | 1,178 | — | 1,178 | ||||||||||||
Stock-based compensation | — | 1,953 | (15,336 | ) | 17,289 | — | 17,289 | |||||||||||
Amortization of intangibles | — | 5,180 | (3,187 | ) | 8,367 | — | 8,367 | |||||||||||
Restructuring and related charges | — | 857 | (2,918 | ) | 3,775 | — | 3,775 | |||||||||||
Gain on equity investments | — | — | — | — | (111 | ) | (111 | ) | ||||||||||
Avid litigation settlement and associated legal fees | — | — | 6 | (6 | ) | — | (6 | ) | ||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 6,060 | 6,060 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 950 | ||||||||||||
Total adjustments | 1,178 | 9,168 | (21,435 | ) | 30,603 | 5,949 | 37,502 | |||||||||||
Non-GAAP | $ | 404,736 | $ | 218,377 | $ | 192,785 | $ | 25,592 | $ | (5,988 | ) | $ | 16,467 | |||||
As a % of revenue (GAAP) | 51.8 | % | 53.1 | % | (1.2 | )% | (3.0 | )% | (5.2 | )% | ||||||||
As a % of revenue (Non-GAAP) | 54.0 | % | 47.6 | % | 6.3 | % | (1.5 | )% | 4.1 | % | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.25 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.19 | ||||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP | 85,615 | |||||||||||||||||
Non-GAAP | 86,741 |
Q1 2020 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |
GAAP | $80.0 to $90.0 | $38.0 to $44.3 | $55.5 to $57.5 | $(19.5) to $(11.0) | $(3.1) | $(23.2) to $(14.9) |
Stock-based compensation | — | 1.2 | (6.4) | 7.6 | — | 7.6 |
Amortization of intangibles | — | 0.9 | (0.8) | 1.7 | — | 1.7 |
Restructuring and related charges | — | 0.2 | (0.2) | 0.4 | — | 0.4 |
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 1.8 | 1.8 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $1.0 to $1.8 |
Total adjustments | — | 2.3 | (7.4) | 9.7 | 1.8 | $12.5 to $13.3 |
Non-GAAP | $80.0 to $90.0 | $40.3 to $46.6 | $48.0 to $50.0 | $(9.5) to $(1.5) | $(1.3) | $(9.7) to $(2.5) |
As a % of revenue (GAAP) | 47.5% to 49.0% | 61.6% to 71.8% | (24.3)% to (12.3)% | (3.4)% to (3.9)% | (29.0)% to (16.6)% | |
As a % of revenue (Non-GAAP) | 50.0% to 52.0% | 53.3% to 62.5% | (11.9)% to (1.7)% | (1.4)% to (1.6)% | (12.1)% to (2.8)% | |
Diluted net loss per share: | ||||||
Diluted net loss per share-GAAP | $(0.24) to $(0.16) | |||||
Diluted net loss per share-Non-GAAP | $(0.10) to $(0.03) | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 95,762 | |||||
2020 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $390.0 to $430.0 | $190.3 to $231.2 | $214.3 to $226.3 | $(24.0) to $4.9 | $(12.6) | $(39.5) to $(10.6) |
Stock-based compensation expense | — | 2.9 | (20.5) | 23.4 | — | 23.4 |
Amortization of intangibles | — | 1.0 | (3.0) | 4.0 | — | 4.0 |
Restructuring and related charges | — | 0.8 | (0.8) | 1.6 | — | 1.6 |
Non-cash interest expense related to convertible notes | — | — | — | — | 7.4 | 7.4 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $0.1 to $2.9 |
Total adjustments | — | 4.7 | (24.3) | 29.0 | 7.4 | $36.4 to $39.3 |
Non-GAAP | $390.0 to $430.0 | $195.0 to $235.9 | $190.0 to $202.0 | $5.0 to $34.0 | $(5.2) | $(0.2) to $25.8 |
As a % of revenue (GAAP) | 49.0% to 54.0% | 54.9% to 52.6% | (6.2)% to 1.1% | (2.9)% to (3.2)% | (10.1)% to (2.5)% | |
As a % of revenue (Non-GAAP) | 50.0% to 55.0% | 48.7% to 47.0% | 1.3% to 7.9% | (1.2)% to (1.3)% | (0.1)% to 6.0% | |
Diluted net income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.40) to $(0.11) | |||||
Diluted net income (loss) per share-Non-GAAP | $0.00 to $0.26 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 97,659 | |||||
Shares used to compute diluted net income per share: | ||||||
Non-GAAP | 101,165 |