Xactly Announces Preliminary Financial Results for First Quarter Fiscal 2018
Xactly (NYSE:XTLY), a leading provider of cloud-based incentive solutions, today provided preliminary financial results for the
first quarter fiscal 2018 ended April 30, 2017.
For the first quarter fiscal 2018, total revenue is expected to be approximately $24.6 million and subscription revenue is
expected to be approximately $19.5 million. Calculated billings are expected to be in the range of $25.3 million to $25.5 million
for the quarter. GAAP net loss is expected to be in the range of $(4.6) to $(4.4) million, or $(0.15) to $(0.14) per
share. Non-GAAP net loss is expected to be in the range of $(1.9) million to $(1.7) million, or $(0.06) to $(0.05) per share.
Adjusted EBITDA loss is expected to be in the range of $(0.6) million to $(0.4) million.
In a separate press release issued today, Xactly announced that it has entered into a definitive agreement to be acquired by
affiliates of Vista Equity Partners.
The company will report its fiscal 2018 first quarter results in its Quarterly Report on Form 10-Q. Xactly will not hold a
conference call to discuss earnings due to the announced sale of the company.
Non-GAAP Financial Measures
To supplement its financial statements, Xactly also provides investors with certain non-GAAP financial measures. We believe that
these non-GAAP measures are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall
understanding of our past financial performance. The non-GAAP financial measures included in this press release should not be
considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP, and the non-GAAP
financial measures that we use may differ from those of other companies in our industry. A reconciliation between each non-GAAP
financial measure and its nearest GAAP equivalent and related explanations are included below. We believe that supplementing GAAP
disclosure with non-GAAP disclosure that excludes items that are not directly related to performance in any particular period
provides management and investors with a more complete view of Xactly’s operational performance. Various items are excluded from
such non-GAAP financial measures in part because the decisions which gave rise to the excluded items were not made to increase
revenue in a particular period, but were made for Xactly’s long-term benefit over multiple periods.
Non-GAAP net loss and non-GAAP net loss per share. We believe non-GAAP net loss and non-GAAP net
loss per share may prove useful to investors who wish to consider the impact of certain non-cash or non-recurring items, such as
certain one-time charges, on Xactly’s operating performance. We compensate for the inherent limitations associated with using
non-GAAP net loss and non-GAAP net loss per share through disclosure of these limitations, presentation of our financial statements
in accordance with U.S. GAAP and reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP
measures, net loss and net loss per share. We calculate non-GAAP net loss (and non-GAAP net loss per share) as net loss (and net
loss per share) before (i) stock-based compensation, (ii) increase or decrease in expenses related to the change in fair value of
convertible preferred stock warrant liabilities, (iii) and any applicable, non-recurring or unusual charges as we may determine
from time to time.
Adjusted EBITDA. We believe that Adjusted EBITDA helps illustrate underlying trends in our business
that could otherwise be masked by the effect of the income or expenses that we exclude from Adjusted EBITDA. Furthermore, we use
this measure to establish budgets and operational goals for managing our business and evaluating our performance. We also believe
that Adjusted EBITDA provides an additional tool for investors to use in comparing our recurring core business operating results
over multiple periods with other companies in our industry. We compensate for the inherent limitations associated with using
Adjusted EBITDA through disclosure of these limitations, presentation of our financial statements in accordance with U.S. GAAP and
reconciliation of Adjusted EBITDA to the most directly comparable U.S. GAAP measure, net loss. We calculate Adjusted EBITDA as net
loss before (i) other income (expense), net, which includes interest expense, the change in fair value of convertible preferred
stock warrant liabilities and other income and expense, (ii) income tax expense, (iii) depreciation and amortization of property
and equipment, (iv) amortization of debt issuance costs, (v) stock-based compensation and (vi) any applicable, non-recurring or
unusual charges as we may determine from time to time.
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things,
expected GAAP and non-GAAP financial operating results for the first fiscal quarter of fiscal 2018, such as revenue, calculated
billings growth rate, net loss, net loss per share, non-GAAP net loss and non-GAAP net loss per share and Adjusted EBITDA, and
other information about future events and trends that we believe may affect our business, financial condition, operating results
and growth prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. You should not
place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, changes in
circumstances and other factors that are, in some cases, beyond Xactly’s control and could cause actual results to differ
materially from the information expressed or implied by forward-looking statements made in this press release. Factors that could
materially affect actual results can be found in Xactly’s most recent filings with the Securities and Exchange Commission,
including Xactly’s most recent reports on Forms 8-K and 10-K, and include those listed under the caption “Risk Factors.” Xactly
undertakes no obligation to revise or update information in this press release to reflect events or circumstances in the future,
even if new information becomes available.
About Xactly
Headquartered in San Jose, California, Xactly (NYSE: XTLY), is a leading provider of enterprise-class, cloud-based, incentive
compensation solutions for employee and sales performance management. Named a leader in Gartner’s Magic Quadrant for Sales
Performance Management software, Xactly addresses a critical business need to incentivize employees and align their behaviors with
company goals. Our products allow organizations to make more strategic decisions, increase employee performance, improve margins,
and mitigate risk.
Our core values are key to our success, and each day we’re committed to upholding them by delivering the best we can to our
customers. To learn more about Xactly and the latest issues and trends in SPM software, follow us on Twitter, Facebook, and
subscribe to the Xactly blog.
©2017 Xactly Corporation. All rights reserved. Xactly, the Xactly logo, and “Inspire Performance” are registered trademarks or
trademarks of Xactly Corporation in the United States and/or other countries. All other trademarks are the property of their
respective owners.
Additional Information and Where to Find It
Xactly plans to file with the Securities and Exchange Commission (the “SEC”), and furnish to its stockholders a proxy statement
in connection with the proposed merger with Excalibur Merger Sub, Inc., pursuant to which Xactly would be acquired by entities
affiliated with Vista Equity Partners (the “Merger”). The proxy statement described above will contain important information about
the proposed merger and related matters. INVESTORS, STOCKHOLDERS AND SECURITY HOLDERS OF XACTLY ARE URGED TO READ THESE MATERIALS
(INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT XACTLY
WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT XACTLY AND THE TRANSACTION.
Investors, stockholders and security holders will be able to obtain free copies of these documents and other documents filed with
the SEC by Xactly through the website maintained by the SEC at www.sec.gov. In addition, investors, stockholders and security holders will be able to obtain free copies of
these documents from Xactly by contacting Xactly's Investor Relations at (408) 477-3338, by e-mail at ir@xactlycorp.com, or by going to Xactly's Investor Relations page on its website at
investors.xactlycorp.com.
Participants in the Solicitation
The directors and executive officers of Xactly may be deemed to be participants in the solicitation of proxies from the
stockholders of Xactly in connection with the proposed Merger. Information regarding the interests of these directors and executive
officers in the transaction described herein will be included in the proxy statement described above. Additional information
regarding Xactly's directors and executive officers is also included in Xactly's proxy statement for its 2017 Annual Meeting of
Stockholders, which was filed with the SEC on May 11, 2017. These documents are available free of charge as described in the
preceding paragraph.
|
Reconciliation of Preliminary GAAP Net Loss to
Preliminary Non-GAAP Net Loss |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
Preliminary |
|
|
|
Three months ended |
|
|
|
April 30, 2017 |
|
|
|
|
GAAP net loss |
|
|
$(4,600) - $(4,400) |
Non-GAAP adjustments: |
|
|
|
Stock-based compensation |
|
|
2,700 |
|
|
|
|
Non-GAAP net loss |
|
|
$(1,900) - $(1,700) |
|
|
|
|
GAAP net loss per share, basic and diluted |
|
|
$(0.15) - $(0.14) |
Non-GAAP net loss per share, basic and diluted |
|
|
$(0.06) - $(0.05) |
|
|
|
|
Shares used in computing non-GAAP net loss per share: |
|
|
|
Basic and diluted |
|
|
31,700 |
|
|
|
|
|
Reconciliation of Preliminary GAAP Net Loss to
Preliminary Adjusted EBITDA |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
Preliminary |
|
|
|
Three months ended |
|
|
|
April 30, 2017 |
|
|
|
|
Net loss |
|
|
$(4,600) - $(4,400) |
Non-GAAP adjustments: |
|
|
|
Interest expense |
|
|
100 |
Income tax expense |
|
|
100 |
Depreciation and amortization |
|
|
1,100 |
Stock-based compensation |
|
|
2,700 |
Adjusted EBITDA |
|
|
$(600) - $(400) |
|
|
|
|
The Blueshirt Group
Investor Relations
Lisa Laukkanen, 415-217-4967
lisa@blueshirtgroup.com
or
Nicole Gunderson, 415-489-2196
nicole@blueshirtgroup.com
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