SALT LAKE CITY and SEATTLE, Jan. 29,
2021 /PRNewswire/ -- Qualtrics (NASDAQ: XM), the leader
in customer experience and creator of the experience management
category, today reaffirms the estimated preliminary results as
presented in its preliminary prospectus filed with the SEC on
January 28, 2021.
The announcement by SAP SE ("SAP") of its fourth quarter 2020
results today contains certain of our financial results presented
as an operating segment within SAP's reported financial results.
These Euro-reported financial results are prepared under
International Financial Reporting Standards, or IFRS, with selected
financial measures presented on an IFRS and non-IFRS basis. The SAP
segment results differ from our standalone financial results
primarily due to: differences in reporting currency, differences
between IFRS and U.S. generally accepted accounting principles, or
GAAP, differences in the reporting of certain related party
transactions between Qualtrics and SAP, and SAP's segment reporting
of expenses related to certain corporate overhead functions.
Qualtrics will release full financial results for the fourth
quarter and full year 2020, and hold a conference call at
3:00 p.m. (MT) after U.S. markets
close on March 9, 2021. A live
webcast and replay details of the event will be available on
Qualtrics Investors Relations website at
www.qualtrics.com/investors.
The estimated preliminary results presented in Qualtrics'
preliminary prospectus were as follows:
|
|
Three Months
Ended
December 31, 2020
|
|
|
Low
(estimated)
|
|
High
(estimated)
|
|
|
(unaudited,
dollars in thousands)
|
Revenue:
|
|
|
|
|
Subscription
|
|
$
|
159,000
|
|
|
$
|
161,000
|
|
Professional services
and other
|
|
52,500
|
|
|
53,500
|
|
Total
revenue
|
|
$
|
211,500
|
|
|
$
|
214,500
|
|
Cost of
revenue:
|
|
|
|
|
Subscription
|
|
$
|
16,500
|
|
|
$
|
15,500
|
|
Professional services
and other
|
|
36,500
|
|
|
35,500
|
|
Total cost of
revenue
|
|
$
|
53,000
|
|
|
$
|
51,000
|
|
Gross
profit
|
|
$
|
158,500
|
|
|
$
|
163,500
|
|
Gross
margin
|
|
75
|
%
|
|
76
|
%
|
Operating
loss
|
|
$
|
(13,500)
|
|
|
$
|
(10,000)
|
|
Operating
margin
|
|
(6)
|
%
|
|
(5)
|
%
|
|
|
|
|
|
Non-GAAP Financial
Measures:
|
Non-GAAP gross
profit
|
|
$
|
160,132
|
|
|
$
|
165,132
|
|
Non-GAAP gross
margin
|
|
76
|
%
|
|
77
|
%
|
Non-GAAP operating
loss
|
|
$
|
(7,173)
|
|
|
$
|
(3,673)
|
|
Non-GAAP operating
margin
|
|
(3)
|
%
|
|
(2)
|
%
|
The unaudited selected financial results for the three months
ended December 31, 2020 reflects our
preliminary estimates with respect to such results based on
currently available information and is not a comprehensive
statement of our financial results which is subject to
completion of our financial closing procedures. Our financial
closing procedures for the three months ended December 31, 2020 are not yet complete and, as a
result, our actual results may differ materially from these
estimates. These estimates should not be viewed as a substitute for
our full quarterly or annual financial statements prepared in
accordance with U.S. GAAP.
About Qualtrics
Qualtrics, the leader in customer experience and creator of the
Experience Management (XM) category, is changing the way
organizations manage and improve the four core experiences of
business––customer, employee, product, and brand. Over 13,000
organizations around the world are using Qualtrics to listen,
understand, and take action on experience data (X-data™)––the
beliefs, emotions, and intentions that tell you why things are
happening, and what to do about it. The Qualtrics XM Platform™ is a
system of action that helps businesses attract customers who stay
longer and buy more, engage employees who build a positive culture,
develop breakthrough products people love, and build a brand people
are passionate about. To learn more, please visit
qualtrics.com.
Investor Relations:
Steven
Wu
Head of FP&A and Investor Relations
investors@qualtrics.com
Public Relations:
Gina
Sheibley
Chief Communications Officer
press@qualtrics.com
Non-GAAP Financial Measures
To supplement our estimated preliminary financial results, which
are prepared and presented in accordance with GAAP, we use certain
non-GAAP financial measures, as described below, to understand and
evaluate our core operating performance. These non-GAAP financial
measures, which may be different than similarly-titled measures
used by other companies, are presented to enhance investors'
overall understanding of our financial performance and should not
be considered a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects, and
allow for greater transparency with respect to important metrics
used by our management for financial and operational
decision-making. We are presenting these non-GAAP measures to
assist investors in seeing our financial performance using a
management view, and because we believe that these measures provide
an additional tool for investors to use in comparing our core
financial performance over multiple periods with other companies in
our industry. You should consider non-GAAP results alongside other
financial performance measures and results presented in accordance
with GAAP. In addition, in evaluating non-GAAP results, you should
be aware that in the future we will incur expenses such as those
that are the subject of adjustments in deriving non-GAAP results
and you should not infer from our non-GAAP results that our future
results will not be affected by these expenses or any unusual or
non-recurring items.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating loss, non-GAAP operating margin: We define these
non-GAAP financial measures as the respective GAAP measures,
excluding cash settled stock-based compensation expenses and
amortization of acquired intangible assets. When evaluating the
performance of our business and making operating plans, we do not
consider these items (for example, when considering the impact of
equity award grants, we place a greater emphasis on overall
stockholder dilution rather than the accounting charges associated
with such grants). We believe it is useful to exclude these
expenses in order to better understand the long-term performance of
our core business and to facilitate comparison of our results to
those of peer companies and over multiple periods.
The following tables provide reconciliations of our preliminary
estimates of non-GAAP gross profit and non-GAAP operating loss for
the three months ended December 31,
2020:
|
|
Three Months
Ended
December 31, 2020
|
|
|
Low
(estimated)
|
|
High
(estimated)
|
|
|
(unaudited,
dollars in thousands)
|
|
|
|
|
|
GAAP gross
profit
|
|
$
|
158,500
|
|
|
$
|
163,500
|
|
Add: Cash settled
stock-based compensation expense
|
|
1,367
|
|
|
1,367
|
|
Add: Amortization of
acquired intangible assets
|
|
265
|
|
|
265
|
|
Non-GAAP gross
profit
|
|
$
|
160,132
|
|
|
$
|
165,132
|
|
Non-GAAP gross
margin
|
|
76
|
%
|
|
77
|
%
|
|
|
Three Months
Ended
December 31, 2020
|
|
|
Low
(estimated)
|
|
High
(estimated)
|
|
|
(unaudited,
dollars in thousands)
|
|
|
|
|
|
GAAP operating
loss
|
|
$
|
(13,500)
|
|
|
$
|
(10,000)
|
|
Add: Cash settled
stock-based compensation expense (1)
|
|
5,964
|
|
|
5,964
|
|
Add: Amortization of
acquired intangible assets
|
|
363
|
|
|
363
|
|
Non-GAAP operating
loss
|
|
$
|
(7,173)
|
|
|
$
|
(3,673)
|
|
Non-GAAP operating
margin
|
|
(3)
|
%
|
|
(2)
|
%
|
|
|
(1)
|
As a result of SAP's
acquisition of Qualtrics on January 23, 2019, our stock-based
compensation expense for the periods shown reflects the recognition
of liability-classified awards. For the three months ended December
31, 2020 (unaudited), stock-based compensation expense consisted
$6.0 million (estimated) of liability-classified awards.
Liability-classified awards are recorded according to
mark-to-market accounting and are settled in cash in accordance
with SAP's employee equity compensation programs.
|
A registration statement relating to the sale of shares of Class
A common stock of Qualtrics has been filed with, and declared
effective by, the Securities and Exchange Commission. Copies of the
registration statement can be accessed through the Securities and
Exchange Commission's website at www.sec.gov. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy these securities, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
View original
content:http://www.prnewswire.com/news-releases/qualtrics-reaffirms-estimated-preliminary-results-for-the-three-months-ending-december-31-2020-301217996.html
SOURCE Qualtrics