PROVO, Utah and SEATTLE, July 20,
2021 /PRNewswire/ -- Qualtrics (NASDAQ: XM), the world's No.
1 Experience Management (XM) provider and creator of the XM
category, today announced financial results for the second quarter
ended June 30, 2021.
"Today the experiences companies deliver are absolutely vital to
staying competitive," said Zig
Serafin, Qualtrics CEO. "Every company is going through an
experience transformation, and they're turning to Qualtrics to help
them deliver breakthrough experiences for their employees and
customers. We've never been more relevant, which you can see in our
strong Q2 results and our revenue guidance of more than
$1 billion in 2021."
Second Quarter 2021 Financial Highlights:
- Revenue: Total revenue for the second quarter was
$249.3 million, up from $181.0 million one year ago, an increase of 38%
year-over-year. Subscription revenue for the second quarter was
$204.5 million, up from $138.5 million one year ago, an increase of 48%
year-over-year.
- Operating Income (Loss) and Margin: Second quarter
operating loss was $(273.7) million,
compared to $(125.1) million one year
ago. Non-GAAP operating income (see discussion of non-GAAP
operating income (loss) and margin measures below) was $11.5 million, compared to non-GAAP operating
loss of $(3.4) million one year ago.
For the second quarter, GAAP operating margin was (110)% and
non-GAAP operating margin was 5%.
- Net Income (Loss) and Net Income (Loss) Per Share:
Second quarter net loss was $(263.5)
million, or $(0.51) per share,
compared to $(127.5) million, or
$(0.30) per share in the second
quarter of fiscal year 2020. Non-GAAP net income (see discussion of
the non-GAAP net income (loss) measure below) for the second
quarter was $22.3 million, or
$0.04 per share, compared to non-GAAP
net loss of $(5.6) million, or
$(0.01) per share in the second
quarter of fiscal year 2020.
- Cash and Cash Equivalents: Total cash and cash
equivalents as of June 30, 2021 was
$635.1 million.
Financial Outlook:
Qualtrics is providing guidance for its third quarter ending
September 30, 2021 as follows:
- Total revenue between $257 and
$259 million.
- Subscription revenue between $209
and $211 million.
- Non-GAAP operating margin between 0% and 1%.
- Non-GAAP net loss per share between $(0.03) and $(0.01)
assuming 515 million weighted shares outstanding.
Qualtrics is updating its guidance for its full year ending
December 31, 2021 as follows:
- Total revenue between $1,007 and
$1,011 million.
- Subscription revenue between $813
and $817 million.
- Non-GAAP operating margin between 0% and 1%.
- Non-GAAP net loss per share between $(0.02) and $0.00
assuming 510 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 income (loss), non-GAAP operating margin,
non-GAAP net income (loss), and non-GAAP net income (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 second quarter 2021
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 third 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 are
and/or will be included under the caption "Risk Factors" and
elsewhere in Qualtrics' Annual Report on Form 10-K and most recent
Quarterly Report on Form 10-Q 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 income (loss), non-GAAP operating margin, non-GAAP net
income (loss), non-GAAP net income (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, 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 June 30,
2021
|
|
As of December
31,
2020
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
635,149
|
|
|
$
|
203,891
|
|
Accounts receivable,
net of allowance
|
242,515
|
|
|
296,148
|
|
Deferred contract
acquisition costs, net
|
48,337
|
|
|
43,429
|
|
Prepaid expenses and
other current assets
|
51,263
|
|
|
48,130
|
|
Total current
assets
|
977,264
|
|
|
591,598
|
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
119,102
|
|
|
116,120
|
|
Right-of-use assets
from operating leases
|
187,050
|
|
|
195,372
|
|
Goodwill
|
6,709
|
|
|
6,709
|
|
Other intangible
assets, net
|
3,232
|
|
|
3,959
|
|
Deferred contract
acquisition costs, net of current portion
|
120,664
|
|
|
115,837
|
|
Deferred tax
assets
|
205
|
|
|
92
|
|
Other
assets
|
19,850
|
|
|
9,368
|
|
Total
assets
|
$
|
1,434,076
|
|
|
$
|
1,039,055
|
|
|
|
|
|
Liabilities and
equity (deficit)
|
|
|
|
Current
liabilities:
|
|
|
|
Lease
liabilities
|
$
|
13,441
|
|
|
$
|
7,125
|
|
Accounts
payable
|
39,517
|
|
|
30,452
|
|
Accrued
liabilities
|
88,840
|
|
|
225,046
|
|
Liability-classified,
stock-based awards
|
7,297
|
|
|
209,286
|
|
Deferred
revenue
|
503,280
|
|
|
495,638
|
|
Total current
liabilities
|
652,375
|
|
|
967,547
|
|
Non-current
liabilities:
|
|
|
|
Lease liabilities,
net of current portion
|
226,034
|
|
|
235,620
|
|
Liability-classified,
stock-based awards, net of current portion
|
731
|
|
|
76,627
|
|
Deferred revenue, net
of current portion
|
6,048
|
|
|
5,477
|
|
Note
payable
|
502,869
|
|
|
—
|
|
Deferred tax
liabilities
|
6,060
|
|
|
5,970
|
|
Other
liabilities
|
4,694
|
|
|
16,716
|
|
Total
liabilities
|
$
|
1,398,811
|
|
|
$
|
1,307,957
|
|
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 91,035,764 and 6,000,000 shares as of June
30, 2021 and December 31, 2020
|
9
|
|
|
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 June 30,
2021 and December 31, 2020
|
42
|
|
|
42
|
|
Additional paid in
capital
|
1,895,938
|
|
|
1,126,631
|
|
Accumulated other
comprehensive income
|
1,384
|
|
|
3,191
|
|
Accumulated
deficit
|
(1,862,108)
|
|
|
(1,398,767)
|
|
Total equity
(deficit)
|
35,265
|
|
|
(268,902)
|
|
Total liabilities and
equity (deficit)
|
$
|
1,434,076
|
|
|
$
|
1,039,055
|
|
Qualtrics
International Inc.
|
Consolidated
Statements of Operations
|
(Unaudited, in
thousands, except share and per share data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
|
204,538
|
|
|
$
|
138,476
|
|
|
$
|
391,434
|
|
|
$
|
266,741
|
|
Professional services
and other
|
44,807
|
|
|
42,567
|
|
|
96,554
|
|
|
90,366
|
|
Total
revenue
|
249,345
|
|
|
181,043
|
|
|
487,988
|
|
|
357,107
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Subscription
|
21,693
|
|
|
16,896
|
|
|
42,063
|
|
|
30,612
|
|
Professional services
and other
|
43,070
|
|
|
33,178
|
|
|
84,481
|
|
|
67,386
|
|
Total cost of
revenue
|
64,763
|
|
|
50,074
|
|
|
126,544
|
|
|
97,998
|
|
Gross
profit
|
184,582
|
|
|
130,969
|
|
|
361,444
|
|
|
259,109
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
79,871
|
|
|
71,431
|
|
|
142,677
|
|
|
106,920
|
|
Sales and
marketing
|
151,695
|
|
|
112,672
|
|
|
287,876
|
|
|
219,767
|
|
General and
administrative
|
226,685
|
|
|
72,007
|
|
|
401,134
|
|
|
94,494
|
|
Total operating
expenses
|
458,251
|
|
|
256,110
|
|
|
831,687
|
|
|
421,181
|
|
Operating
loss
|
(273,669)
|
|
|
(125,141)
|
|
|
(470,243)
|
|
|
(162,072)
|
|
Other non-operating
income (expense), net
|
(1,191)
|
|
|
(412)
|
|
|
(2,931)
|
|
|
73
|
|
Loss before income
taxes
|
(274,860)
|
|
|
(125,553)
|
|
|
(473,174)
|
|
|
(161,999)
|
|
(Benefit) provision
for income taxes
|
(11,373)
|
|
|
1,951
|
|
|
(9,833)
|
|
|
10,340
|
|
Net loss
|
$
|
(263,487)
|
|
|
$
|
(127,504)
|
|
|
$
|
(463,341)
|
|
|
$
|
(172,339)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic
|
$
|
(0.51)
|
|
|
$
|
(0.30)
|
|
|
$
|
(0.93)
|
|
|
$
|
(0.41)
|
|
Weighted-average
Class A and Class B shares used in computing net loss per share
attributable to common stockholders, basic
|
513,507,669
|
|
|
423,170,610
|
|
|
497,970,385
|
|
|
423,170,610
|
|
|
Cost of revenue and
operating expenses includes:
|
|
Stock-based
compensation expense as follows:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
in
thousands
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cost of subscription
revenue
|
$
|
3,382
|
|
$
|
2,915
|
|
$
|
6,006
|
|
$
|
3,084
|
Cost of professional
services and other revenue
|
6,754
|
|
3,522
|
|
11,184
|
|
3,611
|
Research and
development
|
34,381
|
|
37,282
|
|
55,713
|
|
39,246
|
Sales and
marketing
|
35,489
|
|
19,064
|
|
58,266
|
|
22,847
|
General and
administrative
|
204,767
|
|
58,642
|
|
356,603
|
|
65,139
|
Total stock-based
compensation expense, including cash
settled(a)
|
$
|
284,773
|
|
$
|
121,425
|
|
$
|
487,772
|
|
$
|
133,927
|
|
|
|
|
|
|
|
(a) 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. Our stock-based compensation expense for the
three and six months ended June 30, 2021 consisted of $284.8
million and $487.8 million, respectively, of liability-classified
and equity-classified awards. During the three and six months ended
June 30, 2021 awards of $2.0 million and $74.0 million,
respectively, were settled in cash. Our stock-based compensation
expense for the three and six months ended June 30, 2020 consisted
of $121.4 million and $133.9 million, respectively, of
liability-classified awards. During the three and six months ended
June 30, 2020 awards of $88.8 million and $187.1 million,
respectively, were settled in cash. Liability-classified awards are
recorded according to mark-to-market accounting.
|
|
Amortization of
acquired intangible assets as follows:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
in
thousands
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cost of subscription
revenue
|
$
|
265
|
|
|
$
|
266
|
|
|
$
|
531
|
|
|
$
|
532
|
|
Sales and
marketing
|
51
|
|
|
51
|
|
|
102
|
|
|
102
|
|
General and
administrative
|
47
|
|
|
47
|
|
|
94
|
|
|
94
|
|
Total amortization of
acquired intangible assets
|
$
|
363
|
|
|
$
|
364
|
|
|
$
|
727
|
|
|
$
|
728
|
|
Qualtrics
International Inc.
|
Consolidated
Statements of Cash Flows
|
(Unaudited, in
thousands)
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(463,341)
|
|
|
$
|
(172,339)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
15,602
|
|
|
12,126
|
|
Loss on disposal of
property and equipment
|
115
|
|
|
—
|
|
Reduction of
right-of-use assets from operating leases
|
11,124
|
|
|
8,178
|
|
Stock-based
compensation expense, including cash settled
|
487,772
|
|
|
133,927
|
|
Amortization of
deferred contract acquisition costs
|
23,173
|
|
|
14,197
|
|
Deferred income
taxes
|
172
|
|
|
1,740
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts receivable,
net
|
53,396
|
|
|
47,078
|
|
Prepaid expenses and
other current assets
|
(4,900)
|
|
|
(809)
|
|
Deferred contract
acquisitions costs
|
(33,892)
|
|
|
(42,686)
|
|
Other
assets
|
(10,651)
|
|
|
(4,751)
|
|
Lease
liabilities
|
(6,016)
|
|
|
(2,925)
|
|
Accounts
payable
|
7,121
|
|
|
(5,061)
|
|
Accrued
liabilities
|
(15,972)
|
|
|
(10,467)
|
|
Deferred
revenue
|
8,213
|
|
|
(18,424)
|
|
Other
liabilities
|
(9,225)
|
|
|
5,084
|
|
Settlement of
stock-based payments liabilities
|
(73,964)
|
|
|
(187,090)
|
|
Net cash flows used
in operating activities
|
(11,273)
|
|
|
(222,222)
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(16,247)
|
|
|
(25,837)
|
|
Net cash flows used
in investing activities
|
(16,247)
|
|
|
(25,837)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from capital
contributions from SAP
|
115,000
|
|
|
280,000
|
|
Proceeds from
issuance of class A common stock, net of underwriting discounts and
commissions
|
2,244,322
|
|
|
—
|
|
Payment of costs
related to initial public offering
|
(3,081)
|
|
|
—
|
|
Repayment of
promissory note
|
(1,892,280)
|
|
|
—
|
|
Payments for taxes
related to net share settlement of equity awards
|
(4,832)
|
|
|
—
|
|
Net cash flows
provided by financing activities
|
459,129
|
|
|
280,000
|
|
|
|
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
(351)
|
|
|
1,123
|
|
Net increase in cash
and cash equivalents
|
431,258
|
|
|
33,064
|
|
Cash and cash
equivalents at the beginning of the period
|
203,891
|
|
|
42,467
|
|
Cash and cash
equivalents at the end of the period
|
$
|
635,149
|
|
|
$
|
75,531
|
|
Qualtrics
International Inc.
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(Unaudited, in
thousands)
|
|
Non-GAAP Gross
Profit and Margin
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(In
thousands)
|
GAAP gross
profit
|
$
|
184,582
|
|
|
$
|
130,969
|
|
|
$
|
361,444
|
|
|
$
|
259,109
|
|
Add: Stock-based
compensation expense, including cash
settled(1)
|
10,136
|
|
|
6,437
|
|
|
17,190
|
|
|
6,695
|
|
Add: Amortization of
acquired intangible assets
|
265
|
|
|
266
|
|
|
531
|
|
|
532
|
|
Non-GAAP gross
profit
|
$
|
194,983
|
|
|
$
|
137,672
|
|
|
$
|
379,165
|
|
|
$
|
266,336
|
|
Non-GAAP gross
margin
|
78
|
%
|
|
76
|
%
|
|
78
|
%
|
|
75
|
%
|
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
Income (Loss) and Margin
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(In
thousands)
|
GAAP operating
loss
|
$
|
(273,669)
|
|
|
$
|
(125,141)
|
|
|
$
|
(470,243)
|
|
|
$
|
(162,072)
|
|
Add: Stock-based
compensation expense, including cash
settled(1)
|
284,773
|
|
|
121,425
|
|
|
487,772
|
|
|
133,927
|
|
Add: Amortization of
acquired intangible assets
|
363
|
|
|
364
|
|
|
727
|
|
|
728
|
|
Non-GAAP operating
income (loss)
|
$
|
11,467
|
|
|
$
|
(3,352)
|
|
|
$
|
18,256
|
|
|
$
|
(27,417)
|
|
Non-GAAP operating
margin
|
5
|
%
|
|
(2)
|
%
|
|
4
|
%
|
|
(8)
|
%
|
We calculate non-GAAP operating income (loss), as GAAP operating
loss excluding equity and cash settled stock-based compensation
expense and amortization of acquired intangible assets. Non-GAAP
operating margin is calculated as non-GAAP operating income (loss)
divided by total revenue.
Non-GAAP Net
Income (Loss) and Net Income (Loss) Per Share
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(In thousands,
except share and per share data)
|
GAAP net
loss
|
$
|
(263,487)
|
|
|
$
|
(127,504)
|
|
|
$
|
(463,341)
|
|
|
$
|
(172,339)
|
|
Add: Stock-based
compensation expense, including cash
settled(1)
|
284,773
|
|
|
121,425
|
|
|
487,772
|
|
|
133,927
|
|
Add: Amortization of
acquired intangible assets
|
363
|
|
|
364
|
|
|
727
|
|
|
728
|
|
Add: Tax impact of
the non-GAAP adjustments
|
624
|
|
|
106
|
|
|
2,387
|
|
|
225
|
|
Non-GAAP net income
(loss)
|
$
|
22,273
|
|
|
$
|
(5,609)
|
|
|
$
|
27,545
|
|
|
$
|
(37,459)
|
|
|
|
|
|
|
|
|
|
Weighted-average
Class A and Class B shares used in computing non-GAAP net income
(loss) per share attributable to common stockholders, basic and
diluted
|
513,507,669
|
|
|
423,170,610
|
|
|
497,970,385
|
|
|
423,170,610
|
|
Non-GAAP net income
(loss) per share attributable to common stockholders, basic and
diluted
|
$
|
0.04
|
|
|
$
|
(0.01)
|
|
|
$
|
0.06
|
|
|
$
|
(0.09)
|
|
We calculate non-GAAP net income (loss) as GAAP net loss
excluding equity and cash settled stock-based compensation expense,
amortization of acquired intangible assets, and the tax impact of
the non-GAAP adjustments. Non-GAAP net income (loss) per share is
calculated as non-GAAP net income (loss) divided by the
weighted-average Class A and Class B shares attributable to common
stockholders.
Free Cash Flow and
Margin
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(In
thousands)
|
|
(In
thousands)
|
Net cash provided by
(used in) operating activities
|
$
|
58,812
|
|
|
$
|
(90,466)
|
|
|
$
|
(11,273)
|
|
|
$
|
(222,222)
|
|
Less: Capital
expenditures
|
(5,098)
|
|
|
(16,764)
|
|
|
(16,247)
|
|
|
(25,837)
|
|
Free cash
flow
|
53,714
|
|
|
(107,230)
|
|
|
(27,520)
|
|
|
(248,059)
|
|
Free cash flow
margin
|
22
|
%
|
|
(59)
|
%
|
|
(6)
|
%
|
|
(69)
|
%
|
We calculate free cash flow as net cash provided by operating
activities less capital expenditures. Free cash flow margin is
calculated as free cash flow divided by total revenue. 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. Our free cash flow for
the three months ended June 30, 2021
and 2020 includes $2.0 million and
$88.8 million, respectively, in cash
outflows related to the settlement of liability-classified,
stock-based awards. Our free cash flow for the six months ended
June 30, 2021 and 2020 includes
$74.0 million and $187.1 million, respectively, in cash outflows
related to the settlement of liability-classified, stock-based
awards.
|
|
|
|
|
|
|
(1) 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. On
January 28, 2021, the Company completed a voluntary exchange offer
pursuant to which 5.4 million cash-settled legacy restricted
stock awards, restricted stock unit (RSU) awards, and options
(together, Qualtrics Rights) and 1.3 million cash-settled SAP
RSU awards were exchanged into 12.8 million equity-settled
Qualtrics RSU awards, representing 93% of the outstanding Qualtrics
Rights and SAP RSU awards.
|
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.
|
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SOURCE Qualtrics