BroadSoft Reports Third Quarter 2015 Financial Results
/EINPresswire.com/ -- GAITHERSBURG, MD -- (Marketwired) -- 11/04/15 -- BroadSoft, Inc. (NASDAQ: BSFT), a leading global provider of Internet protocol-based, or IP-based, communications services to the telecommunications industry, today announced financial results for the quarter ended September 30, 2015.
Financial Highlights for the Third Quarter of 2015
- Total revenue increased 26% year-over-year to $69.1 million
- GAAP gross profit equaled 67% of total revenue; non-GAAP gross profit equaled 74% of total revenue
- GAAP loss from operations totaled $(1.1) million or 2% of revenue; non-GAAP income from operations totaled $11.6 million or 17% of revenue
- GAAP basic and diluted net loss per share equaled $(0.16) per common share; non-GAAP diluted earnings per share equaled $0.36 per common share
Results for the three months ended September 30, 2015
Total revenue rose to $69.1 million in the third quarter of 2015, an increase of 26% compared to $54.6 million in the third quarter of 2014.
Net loss for the third quarter of 2015 was $(4.8) million, or $(0.16) per basic and diluted common share, compared to net loss of $(2.3) million, or $(0.08) per basic and diluted common share in the third quarter of 2014.
On a non-GAAP basis, net income in the third quarter of 2015 was $10.9 million, or $0.36 per diluted common share, compared to non-GAAP net income of $10.1 million, or $0.34 per diluted common share, in the third quarter of 2014. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.
Results for the nine months ended September 30, 2015
Total revenue rose to $189.3 million for the first nine months of 2015, an increase of 25% compared to $151.0 million for the first nine months of 2014.
Net loss for the first nine months of 2015 was $(14.9) million, or $(0.51) per basic and diluted common share, compared to a net loss of $(8.1) million, or $(0.28) per basic and diluted common share for the first nine months of 2014.
On a non-GAAP basis, net income for the first nine months of 2015 was $27.9 million, or $0.92 per diluted common share, compared to non-GAAP net income of $21.1 million, or $0.71 per diluted common share, for the first nine months of 2014. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.
Management Commentary
"Last week, we held our 13th annual BroadSoft Connections users conference. This year's event was both our biggest and best yet," said Michael Tessler, president and chief executive officer, BroadSoft. "Our theme this year was 'Define the Future.' We saw genuine excitement amongst our customer base and industry analysts in response to our vision of our Unified Communications product future."
"We are very pleased with our third quarter results. We delivered over 25% year-over-year revenue and billings growth," said Jim Tholen, chief financial officer, BroadSoft. "From a customer adoption perspective, we had our best ever hosted UC sell-through in the quarter and surpassed a milestone of 12 million active end-users. We look forward to continuing this momentum as we close out the year."
Guidance
For the fourth quarter of 2015, BroadSoft anticipates revenue of $78 to $84 million. The Company also expects to achieve earnings on a non-GAAP basis of $0.58 to $0.74 per diluted common share. For the full year 2015, BroadSoft now expects revenue in the range of $267 million to $273 million and non-GAAP EPS in the range of $1.50 to $1.66.
Conference Call
BroadSoft will discuss its third quarter 2015 results and its business outlook today via teleconference at 8:30 a.m. Eastern Time. To participate in the teleconference, callers can dial the toll free number 1-877-312-5517 (U.S. callers only) or 1-760-666-3772 (from outside the U.S.). The conference call can also be heard live via audio webcast at http://investors.broadsoft.com/events.cfm. To help ensure the conference begins on time, please dial in or connect via the web five minutes prior to the scheduled start time.
For those unable to participate in the live call, a recording will be available shortly after the conclusion of the call at http://investors.broadsoft.com/events.cfm and will remain available until immediately prior to our next earnings call.
BroadSoft has provided in this release, and will provide on this morning's teleconference, financial information that has not been prepared in accordance with generally accepted accounting principles, or GAAP. BroadSoft uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating BroadSoft's ongoing operational performance. BroadSoft's management regularly uses these non-GAAP financial measures to understand and manage its business and believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain non-cash expenses, and may include additional adjustments for items that are infrequent in nature. BroadSoft believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in BroadSoft's industry, many of which present similar non-GAAP financial measures to investors. A reconciliation of the non-GAAP financial measures included in this release and to be discussed on this morning's teleconference to the most directly comparable GAAP financial measures is set forth below.
Non-GAAP financial measures:
Non-GAAP cost of revenue, license software cost of revenue, subscription and maintenance cost of revenue and professional services and other cost of revenue. We define non-GAAP cost of revenue as a cost of revenue less stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP cost of revenue to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our cost of revenue over multiple periods.
Non-GAAP gross profit, license software gross profit, subscription and maintenance support gross profit and professional services and other gross profit. We define non-GAAP gross profit as gross profit plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP gross profit to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our sales margins over multiple periods.
Non-GAAP income from operations. We define non-GAAP operating income as income from operations plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP operating income to be a useful metric for management and investors because it excludes the effect of certain non-cash expenses so management and investors can compare our core business operating results over multiple periods.
Non-GAAP operating expenses, sales and marketing expense, research and development expense and general and administrative expense. We define non-GAAP operating expenses as operating expense plus stock-based compensation expense allocated to sales and marketing, research and development and general and administrative expenses. Similarly, we define non-GAAP sales and marketing, research and development and general and administrative expenses as the relevant GAAP measure plus stock-based compensation expense allocated to the particular expense item.
Non-GAAP net income and net income per share. We define non-GAAP net income as net income plus stock-based compensation expense, amortization expense for acquired intangible assets, non-cash interest expense on our convertible senior notes, foreign currency transaction gains and losses, loss on repurchase of our convertible senior notes and non-cash tax expense included in the GAAP tax provision. We define non-GAAP income per share as non-GAAP net income divided by the weighted average shares outstanding.
Billings. BroadSoft defines billings as revenue plus the net change in our deferred revenue balance for a particular period. BroadSoft believes that billings are a key measure of our business activity.
With respect to our expectations under "Guidance" above, and regarding certain of the projections discussed on this morning's teleconference, reconciliation of both non-GAAP earnings per share guidance, and of projections regarding non-GAAP cost of sales and non-GAAP operating expenses for the remainder of 2015, to the closest corresponding GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of non-cash income taxes, which are extremely difficult to project as a result of our tax status in a number of foreign jurisdictions, and stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
The presentation of non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP income from operations, billings and other non-GAAP financial measures in this release and on this morning's teleconference is not meant to be a substitute for "net income," "net income per share," "gross margin," "income from operations" or other financial measures presented in accordance with GAAP, but rather should be evaluated in conjunction with such data. BroadSoft's definition of "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and other non-GAAP financial measures may differ from similarly titled non-GAAP measures used by other companies and may differ from period to period. In reporting non-GAAP measures in the future, management may make other adjustments for expenses and gains it does not consider reflective of core operating performance in a particular period and may modify "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and such other non-GAAP measures by excluding these expenses and gains.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company's future financial performance set forth under the heading "Guidance." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: the Company's ability to expand its BroadCloud offering geographically and increase the associated recurring service revenue; the Company's dependence on the success of BroadWorks and on its service provider customers to sell services using its applications; the Company's dependence in large part on service providers' continued deployment of, and investment in, their IP-based networks; claims that the Company infringes the intellectual property rights of others; the Company's ability to integrate and achieve the expected benefits from its recent acquisitions, including mPortal Inc.; and the Company's ability to expand its product offerings, as well as those factors contained in the "Risk Factors" sections of the Company's Form 10-K for the year ended December 31, 2014 filed with the SEC on February 25, 2015, and in the Company's other filings with the SEC. All information in this release is as of November 4, 2015. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in the Company's expectations.
About BroadSoft
BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services.
Financial Statements
The financial statements set forth below are not the complete set of the Company's financial statements for the quarter and the year and are presented below without footnotes. Readers are encouraged to obtain and carefully review BroadSoft's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, including all financial statements contained therein and the footnotes thereto, once the report is filed with the SEC. Once filed with the SEC, the Form 10-Q may be retrieved from the SEC's website at www.sec.gov or from BroadSoft's website at www.broadsoft.com.
BroadSoft, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
September 30, December 31,
2015 2014
------------- -------------
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 211,837 $ 101,543
Short-term investments 55,071 68,923
Accounts receivable, net of allowance for
doubtful accounts of $85 and $286 at
September 30, 2015 and December 31, 2014,
respectively 102,005 81,794
Deferred tax assets, current 18,207 14,302
Other current assets 14,441 12,272
------------- -------------
Total current assets 401,561 278,834
------------- -------------
Long-term assets:
Property and equipment, net 18,191 14,363
Long-term investments 62,031 52,030
Intangible assets, net 20,199 15,568
Goodwill 69,705 65,303
Deferred tax assets 456 10,495
Other long-term assets 9,664 7,281
------------- -------------
Total long-term assets 180,246 165,040
------------- -------------
Total assets $ 581,807 $ 443,874
============= =============
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable and accrued expenses $ 29,041 $ 21,222
Deferred revenue, current portion 90,216 87,423
------------- -------------
Total current liabilities 119,257 108,645
------------- -------------
Convertible senior notes 185,155 95,628
Deferred revenue 19,462 14,033
Other long-term liabilities 12,635 5,319
------------- -------------
Total liabilities 336,509 223,625
------------- -------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value per
share; 5,000,000 shares authorized at
September 30, 2015 and December 31, 2014;
no shares issued and outstanding at
September 30, 2015 and December 31, 2014 -- --
Common stock, par value $0.01 per share;
100,000,000 shares authorized at
September 30, 2015 and December 31, 2014;
28,791,838 and 28,943,336 shares issued
and outstanding at September 30, 2015 and
December 31, 2014, respectively. 288 290
Additional paid-in capital 347,535 279,642
Accumulated other comprehensive loss (10,675) (7,712)
Accumulated deficit (91,850) (51,971)
------------- -------------
Total stockholders' equity 245,298 220,249
------------- -------------
Total liabilities and stockholders' equity $ 581,807 $ 443,874
============= =============
BroadSoft, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2015 2014 2015 2014
--------- --------- --------- ---------
(Unaudited) (Unaudited)
Revenue:
License software $ 31,343 $ 25,679 $ 84,370 $ 68,470
Subscription and maintenance
support 29,828 24,216 82,263 67,300
Professional services and
other 7,926 4,734 22,619 15,261
--------- --------- --------- ---------
Total revenue 69,097 54,629 189,252 151,031
Cost of revenue:
License software 2,527 2,488 8,169 7,139
Subscription and maintenance
support 9,902 8,284 29,222 24,336
Professional services and
other 10,164 4,239 22,210 11,454
--------- --------- --------- ---------
Total cost of revenue 22,593 15,011 59,601 42,929
--------- --------- --------- ---------
Gross profit 46,504 39,618 129,651 108,102
Operating expenses:
Sales and marketing 21,383 16,198 62,066 51,200
Research and development 15,249 11,654 46,184 37,206
General and administrative 10,944 8,551 31,623 25,233
--------- --------- --------- ---------
Total operating expenses 47,576 36,403 139,873 113,639
--------- --------- --------- ---------
Income (loss) from operations (1,072) 3,215 (10,222) (5,537)
Other expense:
Interest expense, net 2,525 1,812 6,045 5,380
Other, net 4,088 907 5,311 738
--------- --------- --------- ---------
Total other expense, net 6,613 2,719 11,356 6,118
--------- --------- --------- ---------
Income (loss) before income
taxes (7,685) 496 (21,578) (11,655)
Provision for (benefit from)
income taxes (2,931) 2,788 (6,693) (3,576)
--------- --------- --------- ---------
Net loss $ (4,754) $ (2,292) $ (14,885) $ (8,079)
========= ========= ========= =========
Net loss per common share:
Basic and diluted $ (0.16) $ (0.08) $ (0.51) $ (0.28)
Weighted average common shares
outstanding:
Basic and diluted 29,322 28,722 29,182 28,587
Stock-based compensation expense
included above:
Cost of revenue $ 2,848 $ 719 $ 7,011 $ 2,761
Sales and marketing 3,493 2,164 12,297 8,143
Research and development 2,703 2,008 9,594 7,518
General and administrative 2,009 1,214 6,381 5,447
BroadSoft, Inc.
SUMMARY OF CONSOLIDATED CASH FLOW ACTIVITY
(Unaudited)
Nine Months Ended
September 30,
----------------------
2015 2014
---------- ----------
(in thousands)
Cash provided by (used in):
Operating activities $ 18,246 $ 31,600
Investing activities (24,695) (18,830)
Financing activities 117,927 1,476
BroadSoft, Inc.
BILLINGS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
(in thousands)
Beginning of period deferred
revenue balance $ 107,726 $ 80,792 $ 101,456 $ 77,662
End of period deferred revenue
balance 109,678 82,848 109,678 82,848
---------- ---------- ---------- ----------
Increase in deferred revenue 1,952 2,056 8,222 5,186
Revenue 69,097 54,629 189,252 151,031
---------- ---------- ---------- ----------
Revenue plus net change in
deferred revenue $ 71,049 $ 56,685 197,474 156,217
========== ========== ========== ==========
BroadSoft, Inc.
LICENSE SOFTWARE BILLINGS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2015 2014 2015 2014
--------- ---------- ---------- ----------
(in thousands)
Beginning of period deferred
license software revenue
balance $ 32,582 $ 22,365 $ 26,495 $ 20,149
End of period deferred license
software revenue balance 32,282 24,179 32,282 24,179
--------- ---------- ---------- ----------
Increase (decrease) in
deferred license software
revenue (300) 1,814 5,787 4,030
License software revenue 31,343 25,679 84,370 68,470
--------- ---------- ---------- ----------
License software revenue plus
net change in deferred
license software revenue $ 31,043 $ 27,493 $ 90,157 $ 72,500
========= ========== ========== ==========
BroadSoft, Inc.
SUBSCRIPTION AND MAINTENANCE SUPPORT BILLINGS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2015 2014 2015 2014
--------- --------- --------- ---------
(in thousands)
Beginning of period deferred
subscription and maintenance
support revenue balance $ 53,951 $ 45,874 $ 52,764 $ 46,975
End of period deferred
subscription and maintenance
support revenue balance 49,598 42,978 49,598 42,978
--------- --------- --------- ---------
Decrease in deferred
subscription and maintenance
support revenue (4,353) (2,896) (3,166) (3,997)
Subscription and maintenance
support revenue 29,828 24,216 82,263 67,300
--------- --------- --------- ---------
Subscription and maintenance
support revenue plus net
change in deferred
subscription and maintenance
support revenue $ 25,475 $ 21,320 $ 79,097 $ 63,303
========= ========= ========= =========
BroadSoft, Inc.
PROFESSIONAL SERVICES AND OTHER BILLINGS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
(in thousands)
Beginning of period deferred
professional services and other
revenue balance $ 21,193 $ 12,553 $ 22,197 $ 10,538
End of period deferred
professional services and other
revenue balance 27,798 15,691 27,798 15,691
---------- ---------- ---------- ----------
Increase in deferred
professional services and
other revenue 6,605 3,138 5,601 5,153
Professional services and other
revenue 7,926 4,734 22,619 15,261
---------- ---------- ---------- ----------
Professional services and
other revenue plus net change
in deferred professional
services and other revenue $ 14,531 $ 7,872 $ 28,220 $ 20,414
========== ========== ========== ==========
BroadSoft, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2015 2014 2015 2014
--------- --------- --------- ---------
(in thousands)
Non-GAAP cost of revenue:
GAAP license cost of revenue $ 2,527 $ 2,488 $ 8,169 $ 7,139
(percent of related revenue) 8% 10% 10% 10%
Less:
Stock-based compensation
expense 317 114 956 528
Amortization of acquired
intangible assets 430 223 1,297 675
--------- --------- --------- ---------
Non-GAAP license cost of revenue $ 1,780 $ 2,151 $ 5,916 $ 5,936
========= ========= ========= =========
(percent of related revenue) 6% 8% 7% 9%
GAAP subscription and
maintenance support cost of
revenue $ 9,902 $ 8,284 $ 29,222 $ 24,336
(percent of related revenue) 33% 34% 36% 36%
Less:
Stock-based compensation
expense 725 469 2,595 1,679
Amortization of acquired
intangible assets 1,010 1,132 3,122 3,479
--------- --------- --------- ---------
Non-GAAP subscription and
maintenance support cost of
revenue $ 8,167 $ 6,683 $ 23,505 $ 19,178
========= ========= ========= =========
(percent of related revenue) 27% 28% 29% 28%
GAAP professional services and
other cost of revenue $ 10,164 $ 4,239 $ 22,210 $ 11,454
(percent of related revenue) 128% 90% 98% 75%
Less:
Stock-based compensation
expense 1,806 136 3,460 554
Amortization of acquired
intangible assets $ 175 $ -- $ 233 $ --
--------- --------- --------- ---------
Non-GAAP professional services
and other cost of revenue $ 8,183 $ 4,103 $ 18,517 $ 10,900
========= ========= ========= =========
(percent of related revenue) 103% 87% 82% 71%
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2015 2014 2015 2014
-------- --------- --------- ---------
(in thousands)
Non-GAAP gross profit:
GAAP gross profit $ 46,504 $ 39,618 $ 129,651 $ 108,102
(percent of total revenue) 67% 73% 69% 72%
Plus:
Stock-based compensation
expense 2,848 719 7,011 2,761
Amortization of acquired
intangible assets 1,615 1,355 4,652 4,155
-------- --------- --------- ---------
Non-GAAP gross profit $ 50,967 $ 41,692 $ 141,314 $ 115,018
======== ========= ========= =========
(percent of total revenue) 74% 76% 75% 76%
GAAP license gross profit $ 28,816 $ 23,191 $ 76,201 $ 61,331
(percent of related revenue) 92% 90% 90% 90%
Plus:
Stock-based compensation
expense 317 114 956 528
Amortization of acquired
intangible assets 430 223 1,297 675
-------- --------- --------- ---------
Non-GAAP license gross profit $ 29,563 $ 23,528 $ 78,454 $ 62,534
======== ========= ========= =========
(percent of related revenue) 94% 92% 93% 91%
GAAP subscription and
maintenance support gross
profit $ 19,926 $ 15,932 $ 53,041 $ 42,964
(percent of related revenue) 67% 66% 64% 64%
Plus:
Stock-based compensation
expense 725 469 2,595 1,679
Amortization of acquired
intangible assets 1,010 1,132 3,122 3,480
-------- --------- --------- ---------
Non-GAAP subscription and
maintenance support gross
profit $ 21,661 $ 17,533 $ 58,758 $ 48,123
======== ========= ========= =========
(percent of related revenue) 73% 72% 71% 72%
GAAP professional services and
other gross profit $ (2,238) $ 495 $ 409 $ 3,807
(percent of related revenue) (28)% 10% 2% 25%
Plus:
Stock-based compensation
expense 1,806 136 3,460 554
Amortization of acquired
intangible assets $ 175 $ -- $ 233 $ --
-------- --------- --------- ---------
Non-GAAP professional services
and other gross profit $ (257) $ 631 $ 4,102 $ 4,361
======== ========= ========= =========
(percent of related revenue) (3)% 13% 18% 29%
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2015 2014 2015 2014
-------- --------- -------- --------
(in thousands)
Non-GAAP income from operations:
GAAP income (loss) from
operations $ (1,072) $ 3,215 $(10,222) $ (5,537)
(percent of total revenue) (2)% 6% (5)% (4)%
Plus:
Stock-based compensation
expense 11,053 6,105 35,283 23,869
Amortization of acquired
intangible assets 1,615 1,355 4,652 4,155
-------- --------- -------- --------
Non-GAAP income from operations $ 11,596 $ 10,675 $ 29,713 $ 22,487
======== ========= ======== ========
(percent of total revenue) 17% 20% 16% 15%
GAAP operating expense $ 47,576 $ 36,403 $139,873 $113,639
(percent of total revenue) 69% 67% 74% 75%
Less:
Stock-based compensation
expense 8,205 5,386 28,272 21,108
-------- --------- -------- --------
Non-GAAP operating expense $ 39,371 $ 31,017 $111,601 $ 92,531
======== ========= ======== ========
(percent of total revenue) 57% 57% 59% 61%
GAAP sales and marketing expense $ 21,383 $ 16,198 $ 62,066 $ 51,200
(percent of total revenue) 31% 30% 33% 34%
Less:
Stock-based compensation
expense 3,493 2,164 12,297 8,143
-------- --------- -------- --------
Non-GAAP sales and marketing
expense $ 17,890 $ 14,034 $ 49,769 $ 43,057
======== ========= ======== ========
(percent of total revenue) 26% 26% 26% 29%
GAAP research and development
expense $ 15,249 $ 11,654 $ 46,184 $ 37,206
(percent of total revenue) 22% 21% 24% 25%
Less:
Stock-based compensation
expense 2,703 2,008 9,594 7,518
-------- --------- -------- --------
Non-GAAP research and
development expense $ 12,546 $ 9,646 $ 36,590 $ 29,688
======== ========= ======== ========
(percent of total revenue) 18% 18% 19% 20%
GAAP general and administrative
expense $ 10,944 $ 8,551 $ 31,623 $ 25,233
(percent of total revenue) 16% 16% 17% 17%
Less:
Stock-based compensation
expense 2,009 1,214 6,381 5,447
-------- --------- -------- --------
Non-GAAP general and
administrative expense $ 8,935 $ 7,337 $ 25,242 $ 19,786
======== ========= ======== ========
(percent of total revenue) 13% 13% 13% 13%
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2015 2014 2015 2014
-------- -------- -------- --------
(in thousands, except per share data)
Non-GAAP net income and income
per share:
GAAP net income (loss) $ (4,754) $ (2,292) $(14,885) $ (8,079)
(percent of total revenue) (7)% (4)% (8)% (5)%
Adjusted for:
Stock-based compensation
expense 11,053 6,105 35,283 23,869
Amortization of acquired
intangible assets 1,615 1,355 4,652 4,155
Non-cash interest expense on
our convertible senior notes 2,325 1,485 5,441 4,385
Foreign currency transaction
losses (gains) 336 907 1,559 738
Loss on repurchase of
convertible senior notes 3,752 -- 3,752 --
Non-cash tax provision
(benefit) (3,387) 2,581 (7,857) (4,006)
-------- -------- -------- --------
Non-GAAP net income $ 10,940 $ 10,141 $ 27,945 $ 21,062
======== ======== ======== ========
(percent of total revenue) 16% 19% 15% 14%
GAAP net income (loss) per basic
common share $ (0.16) $ (0.08) $ (0.51) $ (0.28)
Adjusted for:
Stock-based compensation
expense 0.38 0.21 1.21 0.83
Amortization of acquired
intangible assets 0.06 0.05 0.16 0.15
Non-cash interest expense on
our convertible senior notes 0.08 0.05 0.19 0.15
Foreign currency transaction
losses (gains) 0.01 0.03 0.05 0.03
Loss on repurchase of
convertible senior notes 0.13 -- 0.13 --
Non-cash tax provision
(benefit) (0.12) 0.09 (0.27) (0.14)
-------- -------- -------- --------
Non-GAAP net income per basic
common share $ 0.37 $ 0.35 $ 0.96 $ 0.74
======== ======== ======== ========
GAAP net income (loss) per
diluted common share $ (0.16) $ (0.08) $ (0.51) $ (0.28)
Adjusted for:
Stock-based compensation
expense 0.36 0.20 1.16 0.80
Amortization of acquired
intangible assets 0.05 0.05 0.15 0.14
Non-cash interest expense on
our convertible senior notes 0.08 0.05 0.18 0.15
Foreign currency transaction
losses (gains) 0.01 0.03 0.05 0.02
Loss on repurchase of
convertible senior notes 0.12 -- 0.12 --
Non-cash tax provision
(benefit) (0.11) 0.09 (0.26) (0.13)
-------- -------- -------- --------
Non-GAAP net income per diluted
common share $ 0.36 $ 0.34 $ 0.92 $ 0.71
======== ======== ======== ========
* For the three months ended September 30, 2015 and the nine months ended September 30, 2015 and 2014, the non-GAAP net income per diluted common share calculation included the dilutive effect of stock-based awards on the weighted average diluted common shares outstanding (such stock-based awards were not reflected in the corresponding GAAP diluted share calculations, as their effect would have been anti-dilutive as a result of the net losses for these periods). Total diluted weighted average common shares outstanding used for calculating non-GAAP net income per diluted common share were 30,538 thousand and 29,852 thousand for the three months ended September 30, 2015 and 2014 and 30,352 thousand and 29,865 thousand for the nine months ended September 30, 2015 and 2014, respectively.
BSFT-F
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