SALT LAKE CITY and SEATTLE, March 9,
2021 /PRNewswire/ -- Qualtrics (NASDAQ: XM), the leader in
customer and employee experience and creator of the experience
management category, today announced financial results for the
fourth quarter and fiscal year ended December 31, 2020.
"With virtually everything moving to digital, Qualtrics' mission
to help companies design and continuously improve the experiences
they deliver has never been more relevant, and that is reflected in
our outstanding Q4 and 2020 results," said Zig Serafin, CEO, Qualtrics. "We're innovating
faster than ever before to make our more than 13,500 customers
successful, and we're well positioned for continued strong growth
in 2021."
Fourth Quarter 2020 Financial Highlights:
- Revenue: Total revenues for the fourth quarter were
$213.6 million, up 24%
year-over-year. Subscription revenues for the fourth quarter were
$160.4 million, up from $120.5 million one year ago, an increase of 33%
year-over-year.
- Operating Loss and Margin: Fourth quarter operating
loss was $11.0 million, compared to
$145.0 million one year ago. Non-GAAP
operating loss (see discussion of non-GAAP operating loss and
margin measures below) was $4.7
million, compared to $18.5
million one year ago. For the fourth quarter, GAAP operating
margin was (5)% and non-GAAP operating margin was (2)%.
- Net Loss and Net Loss Per Share: Fourth quarter net
loss was $14.5 million, or
$(0.03) per share, compared to
$147.3 million, or $(0.35) per share in the fourth quarter of fiscal
year 2019. Non-GAAP net loss (see discussion of non-GAAP net loss
measure below) for the fourth quarter was $8.1 million, or $(0.02) per share, compared to $20.3 million, or $(0.05) per share in the fourth quarter of fiscal
year 2019.
- Cash and Cash Equivalents: Total cash and cash
equivalents as of December 31, 2020
was $203.9 million
Full Year 2020 Financial Highlights:
- Revenue: Total revenues for the fiscal year ended
December 31, 2020 were $763.5 million, up from $591.2 million one year ago, an increase of 29%
year-over-year. Subscription revenues were $575.4 million, up from $430.0 million one year ago, an increase of 34%
year-over-year.
- Operating Loss and Margin: Operating loss for the
year was $255.1 million, compared to
operating loss of $994.1 million in
2019. Non-GAAP operating loss for the year was $29.6 million, compared to $49.5 million in fiscal 2019. For the fiscal year
2020, Operating margin was (33)% and non-GAAP operating margin was
(4)%.
- Net Loss and Net Loss Per Share: Fiscal year 2020
net loss was $272.5 million, or
$(0.64) per share, compared to
$1,007.6 million in fiscal year 2019,
or $(1.76) per share from
January 23, 2019 through December 31, 2019. Non-GAAP net loss for the year
was $46.0 million, or $(0.11) per share, compared to $59.3 million in fiscal year 2019, or
$(0.12) per share from January 23, 2019 through December 31, 2019.
[1] Remaining performance obligations represent all
contracted future revenue that has not yet been recognized,
including both deferred revenue and non-cancelable contracted
amounts that will be invoiced and recognized as revenue in future
periods.
Financial Outlook:
Qualtrics is providing guidance for its first quarter ending
March 31, 2021 as follows:
- Subscription revenues between $176 and $178
million.
- Total revenues between $226 and
$228 million.
- Non-GAAP operating margin between (1%) and (2%).
- Non-GAAP net loss per share between $(0.02) and $(0.04)
assuming 487 million weighted shares outstanding.
Qualtrics is providing guidance for its full year ending
December 31, 2021 as follows:
- Subscription revenues between $738 and $742
million.
- Total revenues between $950 and
$954 million.
- Non-GAAP operating margin between (4%) and (5%).
- Non-GAAP net loss per share between $(0.16) and $(0.18)
assuming 513 million weighted shares outstanding.
The guidance provided above are forward-looking statements and
actual results may differ materially. Refer to the "Forward-Looking
Statements" safe harbor section below for information on the
factors that could cause our actual results to differ materially
from these forward-looking statements.
Non-GAAP operating loss, non-GAAP operating margin, non-GAAP net
loss and non-GAAP net loss per share are non-GAAP financial
measures. Additional information on Qualtrics' reported results,
including a reconciliation of the non-GAAP financial measures to
their most comparable GAAP measures, is included in the financial
tables below. A reconciliation of non-GAAP guidance measures to
corresponding GAAP measures is not available on a forward-looking
basis without unreasonable effort due to the uncertainty of
expenses that may be incurred in the future, although it is
important to note that these factors could be material to
Qualtrics' results computed in accordance with GAAP.
A supplemental financial presentation and other information can
be accessed through Qualtrics' investor relations website at
https://www.qualtrics.com/investors/.
Qualtrics Earnings Call
Qualtrics plans to host a
conference call today to review its fiscal fourth quarter and full
year 2020 financial results and to discuss its financial outlook.
The call is scheduled to begin at 3:00 p.m.
MT/5:00 p.m. ET. Investors are
invited to join the webcast by visiting:
https://qualtrics.com/investors/events. The webcast will be
available live, and a replay will be available following completion
of the live broadcast for approximately 90 days.
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 13,500 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.
Forward-Looking Statements
This press release contains
express and implied "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, including
statements regarding our financial outlook for the first quarter of
2021 and full year 2021, Qualtrics' growth strategy and business
aspirations, its market position, and the continued impact of
COVID-19 on its business and operations. In some cases, you can
identify forward-looking statements by terms such as "anticipate,"
"believe," "estimate," "expect," "intend," "may," "might," "plan,"
"project," "will," "would," "should," "could," "can," "predict,"
"potential," "target," "explore," "continue," or the negative of
these terms, and similar expressions intended to identify
forward-looking statements. By their nature, these statements are
subject to numerous uncertainties and risks, including factors
beyond our control, that could cause actual results, performance or
achievement to differ materially and adversely from those
anticipated or implied in the statements, including: our future
financial performance, including our revenue, cost of revenue,
gross profit, operating expenses, ability to generate positive cash
flow, and ability to be profitable; our ability to grow at or near
historical growth rates; anticipated technology trends, such as the
use of and demand for experience management software; our ability
to attract and retain customers to use our products; our ability to
respond to and overcome challenges brought by the COVID-19
pandemic; our ability to attract enterprises and international
organizations as customers for our products; our ability to expand
our network with content consulting partners, delivery partners,
and technology partners; the evolution of technology affecting our
products and markets; our ability to introduce new products and
enhance existing products and to compete effectively with
competitors; our ability to successfully enter into new markets and
manage our international expansion; the attraction and retention of
qualified employees and key personnel; our ability to effectively
manage our growth and future expenses and maintain our corporate
culture; our anticipated investments in sales and marketing, and
research and development; our ability to maintain, protect, and
enhance our intellectual property rights; our ability to
successfully defend litigation brought against us; our ability to
maintain data privacy and data security; the sufficiency of our
cash and cash equivalents to meet our liquidity needs; our ability
to comply with modified or new laws and regulations applying to our
business; and our reduced ability to leverage resources at SAP as
an independent company from SAP. Additional risks and uncertainties
that could cause actual outcomes and results to differ materially
from those contemplated by the forward-looking statements will be
included under the caption "Risk Factors" and elsewhere in
Qualtrics' Annual Report on Form 10-K that will be filed with the
Securities and Exchange Commission and any subsequent public
filings. Forward-looking statements speak only as of the date the
statements are made and are based on information available to
Qualtrics at the time those statements are made and/or management's
good faith belief as of that time with respect to future
events. Qualtrics assumes no obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, except as required by law.
Non-GAAP Financial Measures
To supplement our
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, non-GAAP net loss,
non-GAAP net loss per share, free cash flow, free cash flow
margin: We define these non-GAAP financial measures as the
respective GAAP measures, excluding equity and cash settled
stock-based compensation expenses, amortization of acquired
intangible assets, advisory and legal costs related to the SAP
Acquisition, and the tax impact of the non-GAAP adjustments. 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.
Investor Relations:
Steven
Wu
Head of FP&A and Investor Relations
investors@qualtrics.com
Public Relations:
Gina
Sheibley
Chief Communications Officer
press@qualtrics.com
Qualtrics
International Inc.
|
Consolidated
Balance Sheets
|
(Unaudited, in
thousands, except share and par value)
|
|
|
As of December
31,
|
|
2020
|
|
2019
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
203,891
|
|
|
$
|
42,467
|
|
Accounts receivable,
net of allowance
|
296,148
|
|
|
193,692
|
|
Deferred contract
acquisition costs, net
|
43,429
|
|
|
22,168
|
|
Prepaid expenses and
other current assets
|
48,130
|
|
|
37,090
|
|
Total current
assets
|
591,598
|
|
|
295,417
|
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
116,120
|
|
|
51,067
|
|
Right-of-use assets
from operating leases
|
195,372
|
|
|
184,838
|
|
Goodwill
|
6,709
|
|
|
6,709
|
|
Other intangible
assets, net
|
3,959
|
|
|
5,414
|
|
Deferred contract
acquisition costs, net of current portion
|
115,837
|
|
|
54,832
|
|
Deferred tax
assets
|
92
|
|
|
3,313
|
|
Other
assets
|
9,368
|
|
|
1,694
|
|
Total
assets
|
$
|
1,039,055
|
|
|
$
|
603,284
|
|
|
|
|
|
Liabilities,
redeemable convertible preferred stock, and deficit
|
|
|
|
Current
liabilities:
|
|
|
|
Lease
liabilities
|
$
|
7,125
|
|
|
$
|
7,893
|
|
Accounts
payable
|
30,452
|
|
|
31,707
|
|
Accrued
liabilities
|
225,046
|
|
|
80,029
|
|
Liability-classified,
stock-based awards
|
209,286
|
|
|
286,991
|
|
Deferred
revenue
|
495,638
|
|
|
382,602
|
|
Total current
liabilities
|
967,547
|
|
|
789,222
|
|
Non-current
liabilities:
|
|
|
|
Lease liabilities,
net of current portion
|
235,620
|
|
|
182,274
|
|
Liability-classified,
stock-based awards, net of current portion
|
76,627
|
|
|
161,237
|
|
Deferred revenue, net
of current portion
|
5,477
|
|
|
4,182
|
|
Deferred tax
liabilities
|
5,970
|
|
|
—
|
|
Other
liabilities
|
16,716
|
|
|
6,889
|
|
Total
liabilities
|
$
|
1,307,957
|
|
|
$
|
1,143,804
|
|
Commitments and
contingencies
|
|
|
|
Equity
(deficit)
|
|
|
|
Preferred stock, par
value $0.0001 per share; authorized 100,000,000 shares; no shares
outstanding
|
—
|
|
|
—
|
|
Class A common stock,
par value $0.0001 per share; authorized 2,000,000,000 shares;
issued and outstanding 6,000,000 and no shares as of December 31,
2020 and 2019
|
1
|
|
|
—
|
|
Class B common stock,
par value $0.0001 per share; authorized 1,000,000,000 shares;
issued and outstanding 423,170,610 and 423,170,610 as of December
31, 2020 and 2019
|
42
|
|
|
42
|
|
Additional paid in
capital
|
1,126,631
|
|
|
586,631
|
|
Accumulated other
comprehensive income (loss)
|
3,191
|
|
|
(928)
|
|
Accumulated
deficit
|
(1,398,767)
|
|
|
(1,126,265)
|
|
Total
deficit
|
(268,902)
|
|
|
(540,520)
|
|
Total liabilities,
redeemable convertible preferred stock, and deficit
|
$
|
1,039,055
|
|
|
$
|
603,284
|
|
Qualtrics
International Inc.
|
Consolidated
Statements of Operations
|
(Unaudited, in
thousands, except share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
|
160,397
|
|
|
$
|
120,476
|
|
|
$
|
575,397
|
|
|
$
|
430,038
|
|
Professional services
and other
|
53,169
|
|
|
52,331
|
|
|
188,125
|
|
|
161,117
|
|
Total
revenue
|
213,566
|
|
|
172,807
|
|
|
763,522
|
|
|
591,155
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Subscription
|
15,697
|
|
|
16,419
|
|
|
62,671
|
|
|
67,982
|
|
Professional services
and other
|
35,756
|
|
|
36,817
|
|
|
135,816
|
|
|
117,509
|
|
Total cost of
revenue
|
51,453
|
|
|
53,236
|
|
|
198,487
|
|
|
185,491
|
|
Gross
profit
|
162,113
|
|
|
119,571
|
|
|
565,035
|
|
|
405,664
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
43,810
|
|
|
58,658
|
|
|
212,795
|
|
|
242,124
|
|
Sales and
marketing
|
109,019
|
|
|
112,871
|
|
|
431,794
|
|
|
440,325
|
|
General and
administrative
|
20,274
|
|
|
93,021
|
|
|
175,499
|
|
|
717,363
|
|
Total operating
expenses
|
173,103
|
|
|
264,550
|
|
|
820,088
|
|
|
1,399,812
|
|
Operating
loss
|
(10,990)
|
|
|
(144,979)
|
|
|
(255,053)
|
|
|
(994,148)
|
|
Other non-operating
income (expense), net
|
(489)
|
|
|
180
|
|
|
(972)
|
|
|
(486)
|
|
Loss before income
taxes
|
(11,479)
|
|
|
(144,799)
|
|
|
(256,025)
|
|
|
(994,634)
|
|
Provision for income
taxes
|
2,996
|
|
|
2,471
|
|
|
16,477
|
|
|
12,999
|
|
Net loss
|
$
|
(14,475)
|
|
|
$
|
(147,270)
|
|
|
$
|
(272,502)
|
|
|
$
|
(1,007,633)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended D
ecember 31, 2020
|
|
Three Months
Ended
December 31, 2019
|
|
Year Ended
December 31, 2020
|
|
January 23,
2019
through
December 31, 2019
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholder, basic
|
$
|
(0.03)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.64)
|
|
|
$
|
(1.76)
|
|
Weighted-average
Class A and Class B shares used in computing net loss per share
attributable to common stockholder, basic
|
423,829,951
|
|
|
423,170,610
|
|
|
423,334,994
|
|
|
423,170,610
|
|
Qualtrics
International Inc.
|
Consolidated
Statements of Cash Flows
|
(Unaudited, in
thousands)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net loss
|
$
|
(14,475)
|
|
|
$
|
(147,270)
|
|
|
$
|
(272,502)
|
|
|
$
|
(1,007,633)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
7,887
|
|
|
5,661
|
|
|
26,457
|
|
|
19,715
|
|
Reduction of
right-of-use assets from operating leases
|
4,773
|
|
|
4,088
|
|
|
17,202
|
|
|
9,031
|
|
Stock-based
compensation expense, including cash settled
|
5,964
|
|
|
126,105
|
|
|
224,013
|
|
|
876,226
|
|
Amortization of
deferred contract acquisition costs
|
9,715
|
|
|
5,642
|
|
|
32,098
|
|
|
19,513
|
|
Deferred income
taxes
|
10,528
|
|
|
(1,921)
|
|
|
13,200
|
|
|
(5,321)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(135,469)
|
|
|
(68,787)
|
|
|
(103,692)
|
|
|
(54,320)
|
|
Prepaid expenses and
other current assets
|
(3,195)
|
|
|
(13,084)
|
|
|
(10,773)
|
|
|
(17,533)
|
|
Deferred contract
acquisitions costs
|
(48,393)
|
|
|
(13,011)
|
|
|
(111,686)
|
|
|
(47,734)
|
|
Other
assets
|
(1,214)
|
|
|
(190)
|
|
|
(7,592)
|
|
|
1,801
|
|
Lease
liabilities
|
24,528
|
|
|
(2,307)
|
|
|
24,741
|
|
|
(6,375)
|
|
Accounts
payable
|
(1,487)
|
|
|
6,537
|
|
|
(282)
|
|
|
7,219
|
|
Accrued
liabilities
|
24,388
|
|
|
20,262
|
|
|
22,546
|
|
|
44,662
|
|
Deferred
revenue
|
119,902
|
|
|
55,131
|
|
|
114,331
|
|
|
102,562
|
|
Other
liabilities
|
2,701
|
|
|
(2,203)
|
|
|
9,826
|
|
|
55
|
|
Settlement of
stock-based payments liabilities
|
(104,646)
|
|
|
(99,602)
|
|
|
(388,609)
|
|
|
(312,772)
|
|
Net cash flows used
in operating activities
|
(98,493)
|
|
|
(124,949)
|
|
|
(410,722)
|
|
|
(370,904)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(46,464)
|
|
|
(6,712)
|
|
|
(89,518)
|
|
|
(33,181)
|
|
Net cash flows used
in investing activities
|
(46,464)
|
|
|
(6,712)
|
|
|
(89,518)
|
|
|
(33,181)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Proceeds from capital
contributions from SAP
|
140,000
|
|
|
115,000
|
|
|
540,000
|
|
|
869,500
|
|
Proceeds from
issuance of class A common stock
|
120,000
|
|
|
—
|
|
|
120,000
|
|
|
—
|
|
Settlement of
equity-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
(539,707)
|
|
Net cash flows
provided by financing activities
|
260,000
|
|
|
115,000
|
|
|
660,000
|
|
|
329,793
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
1,348
|
|
|
152
|
|
|
1,664
|
|
|
1,316
|
|
Net increase
(decrease) in cash and cash equivalents
|
116,391
|
|
|
(16,509)
|
|
|
161,424
|
|
|
(72,976)
|
|
Cash and cash
equivalents at the beginning of the period
|
87,500
|
|
|
58,976
|
|
|
42,467
|
|
|
115,443
|
|
Cash and cash
equivalents at the end of the period
|
$
|
203,891
|
|
|
$
|
42,467
|
|
|
$
|
203,891
|
|
|
$
|
42,467
|
|
Qualtrics
International Inc.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(Unaudited, in
thousands)
|
|
Non-GAAP Gross
Profit and Margin
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
thousands)
|
GAAP gross
profit
|
$
|
162,113
|
|
|
$
|
119,571
|
|
|
$
|
565,035
|
|
|
$
|
405,664
|
|
Add: Stock-based
compensation expense, including cash
settled(1)
|
1,367
|
|
|
6,420
|
|
|
11,369
|
|
|
41,304
|
|
Add: Amortization of
acquired intangible assets
|
265
|
|
|
282
|
|
|
1,062
|
|
|
1,160
|
|
Non-GAAP gross
profit
|
$
|
163,745
|
|
|
$
|
126,273
|
|
|
$
|
577,466
|
|
|
$
|
448,128
|
|
Non-GAAP gross
margin
|
77
|
%
|
|
73
|
%
|
|
76
|
%
|
|
76
|
%
|
We calculate non-GAAP gross profit as: GAAP gross profit
excluding equity and cash settled stock-based compensation expense
allocated to cost of revenue and amortization of acquired
intangible assets allocated to cost of revenue. Non-GAAP gross
margin is calculated as non-GAAP gross profit divided by total
revenue.
Non-GAAP Operating
Loss and Margin
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
thousands)
|
GAAP operating
loss
|
$
|
(10,990)
|
|
|
$
|
(144,979)
|
|
|
$
|
(255,053)
|
|
|
$
|
(994,148)
|
|
Add: Stock-based
compensation expense, including cash
settled(1)
|
5,964
|
|
|
126,105
|
|
|
224,013
|
|
|
876,226
|
|
Add: Amortization of
acquired intangible assets
|
363
|
|
|
360
|
|
|
1,454
|
|
|
1,478
|
|
Add: Advisory and
legal costs related to the SAP Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
66,992
|
|
Non-GAAP operating
loss
|
$
|
(4,663)
|
|
|
$
|
(18,514)
|
|
|
$
|
(29,586)
|
|
|
$
|
(49,452)
|
|
Non-GAAP operating
margin
|
(2)
|
%
|
|
(11)
|
%
|
|
(4)
|
%
|
|
(8)
|
%
|
We calculate non-GAAP operating loss as: GAAP operating loss
excluding equity and cash settled stock-based compensation expense,
amortization of acquired intangible assets, and advisory and legal
costs related to the SAP Acquisition. Non-GAAP operating margin is
calculated as non-GAAP operating loss divided by total revenue.
Non-GAAP Net Loss
and Net Loss Per Share
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
thousands)
|
GAAP net
loss
|
$
|
(14,475)
|
|
|
$
|
(147,270)
|
|
|
$
|
(272,502)
|
|
|
$
|
(1,007,633)
|
|
Add: Stock-based
compensation expense, including cash
settled(1)
|
5,964
|
|
|
126,105
|
|
|
224,013
|
|
|
876,226
|
|
Add: Amortization of
acquired intangible assets
|
363
|
|
|
360
|
|
|
1,454
|
|
|
1,478
|
|
Add: Advisory and
legal costs related to the SAP Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
66,992
|
|
Add: Tax impact of
the non-GAAP adjustments
|
29
|
|
|
530
|
|
|
1,075
|
|
|
3,684
|
|
Non-GAAP net
loss
|
$
|
(8,119)
|
|
|
$
|
(20,275)
|
|
|
$
|
(45,960)
|
|
|
$
|
(59,253)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31, 2020
|
|
Three Months
Ended
December 31, 2019
|
|
Year Ended
December 31, 2020
|
|
January 23,
2019
through
December 31, 2019
|
Weighted-average
Class A and Class B shares used in computing non-GAAP net loss per
share attributable to common stockholder, basic
|
423,829,951
|
|
|
423,170,610
|
|
|
423,334,994
|
|
|
423,170,610
|
|
Non-GAAP net loss per
share attributable to common stockholder, basic
|
$
|
(0.02)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.12)
|
|
We calculate non-GAAP net loss as: GAAP net loss excluding
equity and cash settled stock-based compensation expense,
amortization of acquired intangible assets, advisory and legal
costs related to the SAP Acquisition, and the tax impact of the
non-GAAP adjustments. Non-GAAP net loss per share is calculated as
non-GAAP net loss divided by the weighted-average Class A and Class
B shares attributable to common stockholders. Due to the impact of
the SAP acquisition of Qualtrics, the Company's capital structure
for the years ended December 31, 2020
and 2019 are not comparable. As a result, the presentation of net
loss per share for the period prior to the SAP acquisition is not
meaningful and only net loss per share for periods subsequent to
the SAP acquisition of Qualtrics are presented.
Free Cash Flow and
Margin
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
thousands)
|
Net cash used in
operating activities
|
$
|
(98,493)
|
|
|
$
|
(124,949)
|
|
|
$
|
(410,722)
|
|
|
$
|
(370,904)
|
|
Less: Capital
expenditures
|
(46,464)
|
|
|
(6,712)
|
|
|
(89,518)
|
|
|
(33,181)
|
|
Free cash
flow
|
(144,957)
|
|
|
(131,661)
|
|
|
(500,240)
|
|
|
(404,085)
|
|
Free cash flow
margin
|
(68)
|
%
|
|
(76)
|
%
|
|
(66)
|
%
|
|
(68)
|
%
|
As a result of the SAP Acquisition, we incurred significant cash
outflows in connection with the settlement of liability-classified,
stock-based awards in accordance with SAP's employee equity
compensation programs. We calculate free cash flow as net cash
provided by operating activities less capital expenditures. Our
free cash flow for the three months ended December 31, 2020 and 2019 and for the year ended
December 31, 2020 and 2019 includes
$104.6 million, $99.6 million, $388.6
million and $379.8 million,
respectively, in cash outflows related to the settlement of
liability-classified, stock-based awards and advisory and legal
costs related to the SAP Acquisition. Free cash flow margin is
calculated as free cash flow divided by total revenue.
________________
(1) As a result of the SAP Acquisition, our
stock-based compensation expense reflects the recognition of both
equity-classified awards and liability-classified awards.
Liability-classified awards are settled in cash in accordance with
SAP's employee equity compensation programs. Liability-classified
awards are recorded according to mark-to-market accounting.
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SOURCE Qualtrics