RALEIGH, N.C., July 31, 2018 /PRNewswire/ -- Bandwidth Inc.
(NASDAQ: BAND), a software company focused on communications for
the enterprise, today announced financial results for the second
quarter ended June 30, 2018.
"Our second quarter results demonstrate that we are executing
against our strategic initiatives as highlighted by our
dollar-based net retention rate of 119%," stated David Morken, chief executive officer of
Bandwidth. "Bandwidth's financial results demonstrate the continued
strength of our core business and the impact of our differentiators
in the enterprise segment. This includes our highly scalable
platform with our easy to use APIs, our vertically integrated
nationwide IP voice network that we built and operate and our one
of a kind CPaaS based 911 capabilities. We are excited to be in the
best position to take advantage of the growing multi-billion dollar
CPaaS opportunity."
Second Quarter 2018 Financial Highlights
- Revenue: Total revenue for the second quarter of 2018
was $48.3 million, up 22% compared to
$39.5 million for the second quarter
of 2017. Within total revenue, CPaaS revenue was $39.8 million, up 26% compared to $31.5 million for the second quarter of 2017.
Other revenue contributed the remaining $8.5
million for the second quarter of 2018. Other revenue was
$8.0 million in the same period last
year.
- Gross Profit: Gross profit for the second quarter of
2018 was $21.7 million, compared to
$17.2 million for the second quarter
of 2017. Gross margin for the second quarter of 2018 was 45%,
compared to 44% for the second quarter of 2017. Non-GAAP gross
profit for the second quarter of 2018 was $22.8 million, compared to $18.3 million for the second quarter of 2017.
Non-GAAP gross margin was 47% for the second quarter of 2018,
compared to 46% for the second quarter of 2017.
- Net Income: Net income for the second quarter of 2018
was $10.5 million, or $0.50 per share, based on 20.9 million weighted
average diluted shares outstanding. This includes a $7.1 million income tax benefit from option
exercises. During the second quarter of 2017, net income
attributable to common stockholders was $1.7
million, or $0.13 per share,
based on 12.9 million weighted average diluted shares outstanding
for the second quarter of 2017.
- Non-GAAP Net Income: Non-GAAP Net Income for the second
quarter of 2018 was $4.1 million, or
$0.20 per share, based on 20.9
million weighted average diluted shares outstanding. Non-GAAP net
income excludes the $7.1 million
income tax benefit from option exercises. This compares to a
Non-GAAP net income of $2.5 million,
or $0.17 per share, based on 14.7
million weighted average diluted shares outstanding for the second
quarter of 2017.
- Adjusted EBITDA: Adjusted EBITDA was $3.2 million for the second quarter of 2018,
compared to $5.8 million for the
second quarter of 2017.
Additional information regarding the non-GAAP financial measures
discussed in this release, including an explanation of these
measures and how each are calculated are included below under the
heading "Non-GAAP Financial Measures." A reconciliation of GAAP to
non-GAAP financial measures has also been provided in the financial
tables included below.
Second Quarter 2018 Key Metrics
- The number of active CPaaS customers was 1,092 as of
June 30, 2018, an increase of 26%
from 865 as of June 30, 2017.
- The dollar-based net retention rate was 119% during the second
quarter of 2018, compared to 105% during the second quarter of
2017.
Additional information regarding our active CPaaS customers and
dollar-based net retention rate and how each are calculated are
included below.
Financial Outlook
As of July 31, 2018, Bandwidth is
providing guidance for its third quarter and full year 2018 as
follows:
- Third Quarter 2018 Guidance: CPaaS revenue is expected
to be in the range of $40.0 million
to $40.5 million. Total revenue is
expected to be in the range of $47.7
million to $48.2 million.
Non-GAAP earnings per share is expected to be a loss in the range
of ($0.19) to ($0.21) per share, using 18.8 million weighted
average basic shares outstanding.
- Full Year 2018 Guidance: CPaaS revenue is expected to be
in the range of $160.7 million to
$161.7 million. Total revenue is
expected to be in the range of $198.0
million to $199.0 million.
Non-GAAP earnings per share ("EPS") is expected to be in the range
of approximately of $0.04 to
$0.09 per share, using 20.9 million
weighted average diluted shares outstanding.
Bandwidth has not reconciled its third quarter and full-year
guidance related to non-GAAP net income to GAAP net income and
non-GAAP EPS to GAAP EPS, because stock-based compensation cannot
be reasonably calculated or predicted at this time. Accordingly, a
reconciliation is not available without unreasonable effort.
Quarterly Conference Call
Bandwidth will host a conference call today at 5:00 p.m. Eastern Time to review the Company's
financial results for the second quarter ended June 30, 2018. To access this call, dial (877)
407-0792 for the U.S. or Canada,
or (201) 689-8263 for international callers. A live webcast of the
conference call will be accessible from the Investors section of
Bandwidth's website at https://investors.bandwidth.com, and a
recording will be archived and accessible at
https://investors.bandwidth.com. An audio replay of this conference
call will also be available through August
14, 2018, by dialing (844) 512-2921 for the U.S. or
Canada, or (412) 317-6671 for
international callers, and entering passcode 13681237.
About Bandwidth Inc.
Bandwidth (NASDAQ: BAND) is a software company focused on
communications for the enterprise. Companies like Google,
Microsoft, and Ring Central use Bandwidth's APIs to easily embed
voice, messaging and 9-1-1 access into software and applications.
Bandwidth is the first and only CPaaS provider offering a robust
selection of communications APIs built around their own nationwide
IP voice network- one of the largest in the nation. More
information available at www.bandwidth.com.
Forward-Looking Statements
This press release includes forward-looking statements. All
statements contained in this press release other than statements of
historical facts, including, without limitation, statements
regarding our future financial and business performance for the
third quarter 2018 and full-year 2018, attractiveness of our
product offerings and platform and the value proposition of our
products, are forward-looking statements. The words "anticipate,"
"believe," "continue," "estimate," "expect," "intend," "guide,"
"may," "will" and similar expressions and their negatives are
intended to identify forward-looking statements. We have based
these forward-looking statements largely on our current
expectations and projections about future events and financial
trends that we believe may affect our financial condition, results
of operations, business strategy, short-term and long-term business
operations and objectives and financial needs. These
forward-looking statements are subject to a number of risks and
uncertainties, including, without limitation, risks related to our
rapid growth and ability to sustain our revenue growth rate,
competition in the markets in which we operate, market growth, our
ability to innovate and manage our growth, our ability to expand
effectively into new markets, our ability to operate in compliance
with applicable laws as well as other risks and uncertainties set
forth in the "Risk Factors" section of our prospectus related to
the initial public offering (IPO), filed with the Securities and
Exchange Commission pursuant to Rule 424(b)(4) under the Securities
Act of 1933, as amended, on November 13,
2017 and subsequent reports that we file with the Securities
and Exchange Commission. Moreover, we operate in a very competitive
and rapidly changing environment. New risks emerge from time to
time. It is not possible for our management to predict all risks,
nor can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements we may make. In light of these risks,
uncertainties and assumptions, we cannot guarantee future results,
levels of activity, performance, achievements or events and
circumstances reflected in the forward-looking statements will
occur. We are under no obligation to update any of these
forward-looking statements after the date of this press release to
conform these statements to actual results or revised expectations,
except as required by law. You should, therefore, not rely on these
forward-looking statements as representing our views as of any date
subsequent to the date of this press release.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with Generally Accepted
Accounting Principles in the United
States, or GAAP, we provide investors with certain non- GAAP
financial measures and other business metrics, which we believe are
helpful to our investors. We use these Non-GAAP financial measures
and other business metrics for financial and operational
decision-making purposes and as a means to evaluate
period-to-period comparisons. We believe that these Non-GAAP
financial measures and other business metrics provide useful
information about our operating results, enhance the overall
understanding of past financial performance and future prospects
and allow for greater transparency with respect to metrics used by
our management in its financial and operational
decision-making.
The presentation of Non-GAAP financial information and other
business metrics is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with GAAP. While our Non-GAAP financial measures and
other business metrics are an important tool for financial and
operational decision-making and for evaluating our own operating
results over different periods of time, we urge investors to review
the reconciliation of these financial measures to the comparable
GAAP financial measures included above, and not to rely on any
single financial measure to evaluate our business.
We define Non-GAAP gross profit as gross profit after adding
back depreciation and amortization and stock-based compensation. We
add back depreciation and amortization and stock-based compensation
because they are non- cash items. We eliminate the impact of these
non-cash items, because we do not consider them indicative of our
core operating performance. Their exclusion facilitates comparisons
of our operating performance on a period-to- period basis.
Therefore, we believe that showing gross margin, as adjusted to
remove the impact of these non- cash expenses, such as
depreciation, amortization and stock-based compensation, is helpful
to investors in assessing our gross profit and gross margin
performance in a way that is similar to how management assesses our
performance.
We calculate Non-GAAP gross margin by dividing adjusted gross
profit by revenue, expressed as a percentage of revenue.
We define Non-GAAP net income as net income adjusted for certain
items affecting period to period comparability. Non-GAAP net income
excludes stock-based compensation, change in fair value of
shareholders' antidilutive arrangement, amortization of acquired
intangible assets related to the Dash acquisition, impairment
charges of intangibles assets, loss (gain) on disposal of property
and equipment, estimated tax impact of above adjustments, income
tax benefit resulting from excess tax benefits associated with the
exercise of stock options, benefit resulting from the release of
the valuation allowance on our deferred tax assets ("DTA"), and
impact on remeasurement of DTA as a result of 2017 tax reform.
We define adjusted EBITDA as net income adjusted to reflect the
addition or elimination of certain income statement items
including, but not limited to: income tax expense (benefit),
interest expense, net, depreciation and amortization expense,
stock-based compensation expense, impairment of intangible assets,
and loss (gain) from disposal of property and equipment. We have
presented Adjusted EBITDA because it is a key measure used by our
management and board of directors to understand and evaluate our
core operating performance, generate future operating plans, and
make strategic decisions regarding the allocation of capital. In
particular, we believe that the exclusion of certain items in
calculating Adjusted EBITDA can produce a useful measure for
period-to-period comparisons of our business.
We define Free Cash Flow as net cash provided by or used in
operating activities less net cash used in investments of property,
plant and equipment activities and capitalized development costs
for software for internal use. We believe free cash flow is a
useful indicator of liquidity and provides information to
management and investors about the amount of cash generated from
our core operations that can be used for investing in our business.
Free cash flow has certain limitations in that it does not
represent the total increase or decrease in the cash balance for
the period, it does not take into consideration investment in
long-term securities, nor does it represent the residual cash flows
available for discretionary expenditures. Therefore, it is
important to evaluate free cash flow along with our condensed
consolidated statements of cash flows.
We believe that these Non-GAAP financial measures provide useful
information about our operating results, enhance the overall
understanding of past financial performance and future prospects
and allow for greater transparency with respect to metrics used by
our management in its financial and operational
decision-making.
While a reconciliation of Non-GAAP guidance measures to
corresponding GAAP measures is not available on a forward-looking
basis as a result of the uncertainty regarding, and the potential
variability of, many of these costs and expenses that we may incur
in the future, we have provided a reconciliation of Non-GAAP
financial measures and other business metrics to the nearest
comparable GAAP measures in the accompanying financial statement
tables included in this press release.
We define an active CPaaS customer account at the end of any
period as an individual account, as identified by a unique account
identifier, for which we have recognized at least $100 of revenue in the last month of the period.
We believe that the use of our platform by active CPaaS customer
accounts at or above the $100 per
month threshold is a stronger indicator of potential future
engagement than trial usage of our platform at levels below
$100 per month. A single organization
may constitute multiple unique active CPaaS customer accounts if it
has multiple unique account identifiers, each of which is treated
as a separate active CPaaS customer account.
Our dollar-based net retention rate compares the CPaaS revenue
from customers in a quarter to the same quarter in the prior year.
To calculate the dollar-based net retention rate, we first identify
the cohort of customers that generate CPaaS revenue and that were
customers in the same quarter of the prior year. The dollar-based
net retention rate is obtained by dividing the CPaaS revenue
generated from that cohort in a quarter, by the CPaaS revenue
generated from that same cohort in the corresponding quarter in the
prior year. When we calculate dollar-based net retention rate for
periods longer than one quarter, we use the average of the
quarterly dollar-based net retention rates for the quarters in such
period.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
|
(In Thousands,
Except Share and per Share Amounts)
|
(unaudited)
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2017
|
2018
|
2017
|
2018
|
Revenue
|
$
|
39,526
|
$
|
48,304
|
$
|
79,151
|
$
|
101,316
|
Cost of
revenue
|
22,294
|
26,566
|
43,860
|
51,930
|
Gross
profit
|
17,232
|
21,738
|
35,291
|
49,386
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
2,409
|
4,435
|
5,091
|
8,216
|
Sales and
marketing
|
2,413
|
4,654
|
4,971
|
9,176
|
General and
administrative
|
8,257
|
11,490
|
15,894
|
22,059
|
Total operating
expenses
|
13,079
|
20,579
|
25,956
|
39,451
|
|
|
|
|
|
Operating
income
|
4,153
|
1,159
|
9,335
|
9,935
|
Other (expense)
income, net
|
(991)
|
90
|
(1,412)
|
139
|
Income before
taxes
|
3,162
|
1,249
|
7,923
|
10,074
|
Income tax
(provision) benefit
|
(1,215)
|
9,263
|
(2,987)
|
6,629
|
Net
income
|
$
|
1,947
|
$
|
10,512
|
$
|
4,936
|
$
|
16,703
|
Other comprehensive
income (loss)
|
|
|
|
|
Unrealized gain (loss)
on marketable securities, net of income
tax benefit
|
$
|
—
|
$
|
4
|
$
|
—
|
$
|
(2)
|
Total comprehensive
income
|
$
|
1,947
|
$
|
10,516
|
$
|
4,936
|
$
|
16,701
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Net
income
|
$
|
1,947
|
$
|
10,512
|
$
|
4,936
|
$
|
16,703
|
Less: net income
allocated to participating securities
|
254
|
—
|
645
|
—
|
Net income
attributable to common stockholders
|
$
|
1,693
|
$
|
10,512
|
$
|
4,291
|
$
|
16,703
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
Basic
|
$
|
0.14
|
$
|
0.58
|
$
|
0.36
|
$
|
0.93
|
Diluted
|
$
|
0.13
|
$
|
0.50
|
$
|
0.33
|
$
|
0.80
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
Basic
|
11,814,584
|
18,154,964
|
11,806,619
|
17,908,159
|
Diluted
|
12,889,334
|
20,893,653
|
12,977,606
|
20,866,777
|
The Company
recognized total stock-based compensation expense in continuing
operations as follows:
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June 30,
|
|
2017
|
2018
|
2017
|
2018
|
Cost of
revenue
|
$
|
21
|
$
|
32
|
$
|
41
|
$
|
49
|
Research and
development
|
30
|
129
|
62
|
203
|
Sales and
marketing
|
43
|
140
|
70
|
218
|
General and
administrative
|
150
|
461
|
317
|
785
|
Total
|
$
|
244
|
$
|
762
|
$
|
490
|
$
|
1,255
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
Thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
June 30,
|
|
2017
|
2018
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
|
37,627
|
$
|
45,806
|
Marketable
securities
|
—
|
10,992
|
Accounts receivable,
net of allowance for doubtful accounts
|
21,225
|
23,001
|
Prepaid expenses and
other current assets
|
6,400
|
7,395
|
Total current
assets
|
65,252
|
87,194
|
Property and
equipment, net
|
14,946
|
19,331
|
Intangible assets,
net
|
7,643
|
7,348
|
Deferred costs,
non-current
|
2,068
|
1,811
|
Other long-term
assets
|
1,192
|
798
|
Goodwill
|
6,867
|
6,867
|
Deferred tax
asset
|
6,526
|
13,204
|
Total
assets
|
$
|
104,494
|
$
|
136,553
|
Liabilities and
stockholders' equity
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
|
3,025
|
$
|
1,786
|
Accrued expenses and
other current liabilities
|
15,725
|
18,531
|
Current portion of
deferred revenue and advanced billings
|
5,768
|
5,607
|
Total current
liabilities
|
24,518
|
25,924
|
Other
liabilities
|
716
|
2,392
|
Deferred revenue, net
of current portion
|
2,549
|
6,851
|
Total
liabilities
|
27,783
|
35,167
|
Stockholders'
equity:
|
|
|
Class A and Class B
common stock
|
17
|
19
|
Additional paid-in
capital
|
102,465
|
110,437
|
Accumulated
deficit
|
(25,771)
|
(9,068)
|
Accumulated other
comprehensive loss
|
—
|
(2)
|
Total stockholders'
equity
|
76,711
|
101,386
|
Total liabilities and
stockholders' equity
|
$
|
104,494
|
$
|
136,553
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
Thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Six months
ended
|
|
June
30,
|
|
2017
|
2018
|
Operating
activities
|
|
|
Net income
|
$
|
4,936
|
$
|
16,703
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
2,821
|
2,683
|
Accretion of bond
discount
|
—
|
(26)
|
Amortization of debt
issuance costs
|
64
|
32
|
Stock-based
compensation
|
490
|
1,255
|
Change in fair value
of shareholders' anti-dilutive arrangement
|
553
|
—
|
Deferred
taxes
|
2,456
|
(6,677)
|
Loss on disposal of
property and equipment
|
9
|
10
|
Changes in operating
assets and liabilities:
|
|
|
Accounts
receivable
|
(130)
|
(1,776)
|
Prepaid expenses and
other assets
|
(1,180)
|
(620)
|
Deferred
costs
|
(598)
|
225
|
Accounts
payable
|
(2,997)
|
(2,375)
|
Accrued expenses and
other liabilities
|
(2,229)
|
3,542
|
Deferred revenue and
advanced billings
|
811
|
4,141
|
Net cash provided by
operating activities
|
5,006
|
17,117
|
Investing
activities
|
|
|
Purchase of property
and equipment
|
(1,123)
|
(3,113)
|
Capitalized software
development costs
|
(1,598)
|
(1,547)
|
Proceeds from sale of
property and equipment
|
3
|
3
|
Purchase of marketable
securities
|
—
|
(13,995)
|
Maturities of
marketable securities
|
—
|
3,000
|
Net cash used in
investing activities
|
(2,718)
|
(15,652)
|
Financing
activities
|
|
|
Borrowings on line of
credit
|
4,000
|
—
|
Repayments on line of
credit
|
(6,500)
|
—
|
Payments on capital
leases
|
(23)
|
(50)
|
Repayments on term
loan
|
(1,000)
|
—
|
Payment of costs
related to the initial public offering
|
—
|
(285)
|
Proceeds from issuances
of common stock
|
109
|
7,004
|
Net cash (used in)
provided by financing activities
|
(3,414)
|
6,669
|
Net (decrease) increase
in cash, cash equivalents, and restricted cash
|
(1,126)
|
8,134
|
Cash, cash equivalents,
and restricted cash, beginning of period
|
7,028
|
37,870
|
Cash, cash equivalents,
and restricted cash, end of period
|
$
|
5,902
|
$
|
46,004
|
Supplemental
disclosure of cash flow information
|
|
|
Cash paid during the
year for interest
|
$
|
965
|
$
|
45
|
Cash paid for
taxes
|
$
|
484
|
$
|
155
|
Supplemental
disclosure of noncash investing and financing
activities
|
|
|
Purchase of property
and equipment, accrued but not paid
|
$
|
74
|
$
|
2,126
|
Reconciliation of
Non-GAAP Financial Measures
|
(In Thousands,
Except Share and per Share Amounts)
|
(Unaudited)
|
|
Non-GAAP Gross
Profit and Non-GAAP Gross Margin
|
Consolidated
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2017
|
2018
|
2017
|
2018
|
Consolidated Gross
Profit
|
$
|
17,232
|
$
|
21,738
|
$
|
35,291
|
$
|
49,386
|
Depreciation
|
1,036
|
1,015
|
2,083
|
2,078
|
Stock-based
compensation
|
21
|
32
|
41
|
49
|
Non-GAAP Gross
Profit
|
$
|
18,289
|
$
22,785
|
$
|
37,415
|
$
|
51,513
|
Non-GAAP Gross
Margin %
|
46
%
|
47
%
|
47
%
|
51
%
|
|
|
|
|
|
By
Segment
|
|
|
|
|
CPaaS
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2017
|
2018
|
2017
|
2018
|
|
(In
thousands)
|
CPaaS Gross
Profit
|
$
|
12,628
|
$
|
16,696
|
$
|
26,047
|
$
|
33,688
|
Depreciation
|
1,036
|
1,015
|
2,083
|
2,078
|
Stock-based
compensation
|
21
|
32
|
41
|
49
|
Non-GAAP Gross
Profit
|
$
|
13,685
|
$
|
17,743
|
$
|
28,171
|
$
|
35,815
|
Non-GAAP CPaaS
Gross Margin %
|
43
%
|
45
%
|
45
%
|
45
%
|
|
|
|
|
|
Other
|
|
|
|
|
There are no non-GAAP
adjustments to gross profit for the Other segment.
|
Adjusted
EBITDA
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2017
|
2018
|
2017
|
2018
|
|
(In
thousands)
|
Net
income
|
$
|
1,947
|
$
|
10,512
|
$
|
4,936
|
$
|
16,703
|
Income tax provision
(benefit) (2)
|
1,215
|
(9,263)
|
2,987
|
(6,629)
|
Interest expense
(income), net
|
438
|
(90)
|
859
|
(139)
|
Depreciation
|
1,235
|
1,166
|
2,401
|
2,388
|
Amortization
|
210
|
130
|
420
|
295
|
Stock-based
compensation
|
244
|
762
|
490
|
1,255
|
Loss on disposal of
property and equipment
|
—
|
1
|
9
|
10
|
Change in fair value
of shareholders' anti-dilutive arrangement (1)
|
553
|
—
|
553
|
—
|
Adjusted
EBITDA
|
$
|
5,842
|
$
|
3,218
|
$
|
12,655
|
$
|
13,883
|
(1)
|
Relates to an
anti-dilutive agreement which allows certain principal non-founder
shareholders the ability to purchase additional common shares. See
Note 4, Fair Value of Financial Instruments, in the Annual Report
on Form 10-K for further explanation.
|
(2)
|
Includes the tax
benefit of $7,052 associated with the exercise of stock
options
|
Reconciliation of
Non-GAAP Financial Measures
|
(In Thousands,
Except Share and per Share Amounts)
|
(Unaudited)
|
|
Non-GAAP Net
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2017
|
2018
|
2017
|
2018
|
|
(In
thousands)
|
Net
income
|
$
|
1,947
|
$
|
10,512
|
$
|
4,936
|
$
|
16,703
|
Stock-based
compensation
|
244
|
762
|
490
|
1,255
|
Change in fair value of
shareholders' anti-dilutive
arrangement
(1)
|
553
|
—
|
553
|
—
|
Amortization related to
acquisitions
|
130
|
130
|
260
|
260
|
Loss on disposal of
property and equipment
|
—
|
1
|
9
|
10
|
Estimated tax effects
of adjustments
|
(355)
|
(229)
|
(501)
|
(391)
|
Income tax benefit of
option exercises
|
—
|
(7,052)
|
—
|
(7,052)
|
Non-GAAP net
income
|
$
|
2,519
|
$
|
4,124
|
$
|
5,747
|
$
|
10,785
|
|
|
|
|
|
Non-GAAP net
income per Non-GAAP share
|
|
|
|
|
Basic
|
$
|
0.19
|
$
|
0.23
|
$
|
0.42
|
$
|
0.60
|
Diluted
|
$
|
0.17
|
$
|
0.20
|
$
|
0.39
|
$
|
0.52
|
|
|
|
|
|
Non-GAAP Weighted
Average Number of Shares
outstanding
|
|
|
|
|
Basic
|
11,814,584
|
18,154,964
|
11,806,619
|
17,908,159
|
Series A redeemable
convertible preferred stock outstanding
|
1,775,000
|
—
|
1,775,000
|
—
|
Non-GAAP Basic
Shares
|
13,589,584
|
18,154,964
|
13,581,619
|
17,908,159
|
|
|
|
|
|
Diluted
|
12,889,334
|
20,893,653
|
12,977,606
|
20,866,777
|
Series A redeemable
convertible preferred stock
outstanding
|
1,775,000
|
—
|
1,775,000
|
—
|
Non-GAAP Diluted
Shares
|
14,664,334
|
20,893,653
|
14,752,606
|
20,866,777
|
|
(1)
|
Relates to an
anti-dilutive agreement which allows certain principal non-founder
shareholders the ability to purchase additional
common shares. See Note 4, Fair Value of Financial Instruments, in
the Annual Report on Form 10-K for further explanation.
|
Free Cash
Flow
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2017
|
2018
|
2017
|
2018
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
|
5,975
|
$
|
5,874
|
$
|
5,006
|
$
|
17,117
|
Net cash used in
investing in capital assets (1)
|
(1,914)
|
(3,258)
|
(2,721)
|
(4,660)
|
Free cash
flow
|
$
|
4,061
|
$
|
2,616
|
$
|
2,285
|
$
|
12,457
|
|
(1)
|
Represents the
acquisition cost of property, equipment and capitalized development
costs for software for internal use.
|
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SOURCE Bandwidth Inc.