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MongoDB, Inc. to Present at the UBS Global TMT Conference and the Barclays Global Technology, Media and Telecommunications Conference

PR Newswire

NEW YORK, Dec. 2, 2020 /PRNewswire/ — MongoDB, Inc. (NASDAQ: MDB), the leading modern, general purpose database platform, today announced that its Chief Operating Officer and Chief Financial Officer, Michael Gordon, and its Vice President of Finance and Business Operations, Serge Tanjga, will present at two upcoming conferences: the UBS Global TMT Conference and the Barclays Global Technology, Media and Telecommunications Conference, both of which will be held virtually.

  • Mr. Gordon and Mr. Tanjga will present at the UBS Conference on Wednesday, December 9, 202010:15 AM Eastern Time and will be webcast live.
  • Mr. Gordon and Mr. Tanjga will present at the Barclays Conference on Thursday, December 10, 2020 at 9:30 AM Eastern Time and will be webcast live.

A live webcast of each presentation will be available on the Events page of the MongoDB investor relations website at https://investors.mongodb.com/events. A replay of the webcasts will also be available for a limited time.

About MongoDB
MongoDB is the leading modern, general purpose database platform, designed to unleash the power of software and data for developers and the applications they build. Headquartered in New York, MongoDB has more than 20,200 customers in over 100 countries. The MongoDB database platform has been downloaded over 125 million times and there have been more than one million MongoDB University registrations.

Investor Relations

Brian Denyeau

ICR for MongoDB
646-277-1251
[email protected]

Media Relations

Ben Wolfson/Tom McMahon
MongoDB
[email protected]

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SOURCE MongoDB, Inc.

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WD-40 Company Announces Virtual 2020 Annual Meeting of Stockholders

PR Newswire

SAN DIEGO, Dec. 2, 2020 /PRNewswire/ — WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, announced today that in order to prioritize the health and well-being of meeting participants, its 2020 annual meeting of stockholders will be held in a virtual format only. An in-person meeting will not be held this year.

The virtual annual meeting of stockholders will take place on Tuesday, December 8, 2020 at 10:00 a.m. PST.  At the meeting, management will provide a general update on the business. Forward-looking and material information may be discussed during this live event.  

The virtual meeting can be accessed at www.meetingcenter.io/283620136. Anyone may enter the meeting as a guest in listen-only mode, but only stockholders of WD-40 Company as of the close of business on October 12, 2020 are entitled to vote or ask questions at the virtual meeting. For more information on how stockholders can participate, including information about how to vote and submit questions pertinent to the meeting, please see WD-40 Company’s proxy materials which can be viewed or downloaded here: http://www.edocumentview.com/WDFC.  Stockholders who have already voted or do not wish to ask questions may enter the meeting as a guest in listen-only mode. 

After the conclusion of the virtual event a webcast will be archived and available on WD-40 Company’s website at http://investor.wd40company.com for a one-year period.

About WD-40 Company
WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world. The Company owns a wide range of trusted maintenance, homecare, and cleaning products under the following well-known brands: WD-40®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®.  

Headquartered in San Diego, WD-40 Company recorded net sales of $408.5 million in fiscal year 2020 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select market under the ticker symbol “WDFC.” For additional information about WD-40 Company please visit http://www.wd40company.com.

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SOURCE WD-40 Company

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American Outdoor Brands, Inc. Second Quarter Fiscal 2021 Financial Release and Conference Call Alert

PR Newswire

COLUMBIA, Mo., Dec. 2, 2020 /PRNewswire/ — American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an industry leading provider of products and accessories for rugged outdoor enthusiasts, today announced it plans to release its second quarter fiscal 2021 financial results on Tuesday, December 15, after the close of the market. The full text of the press release will be available on the American Outdoor Brands site at www.aob.com under the Investor Relations section.

The company will host a conference call and webcast on Tuesday, December 15, 2020, to discuss its second quarter fiscal 2021 financial and operational results. Speakers on the conference call will include Brian Murphy, President and Chief Executive Officer, and Andy Fulmer, Chief Financial Officer. The conference call may include forward-looking statements. The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific). Those interested in listening to the conference call via telephone may call directly at (833) 570-1129 and reference conference identification number 8988032.  No RSVP is necessary.  The conference call audio webcast can also be accessed live on the company’s website at www.aob.com, under the Investor Relations section.

 About American Outdoor Brands, Inc.
American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT) is an industry leading provider of outdoor products and accessories, including hunting, fishing, camping, shooting, and personal security and defense products, for rugged outdoor enthusiasts.  The company produces innovative, top quality products under the brands Caldwell®; Crimson Trace®; Wheeler®; Tipton®; Frankford Arsenal®; Lockdown®; BOG®; Hooyman®; Smith & Wesson® Accessories; M&P® Accessories; Thompson/Center Arms™ Accessories; Performance Center® Accessories; Schrade®; Old Timer®; Uncle Henry®; Imperial®; BUBBA®; UST®;  LaserLyte®; and MEAT!.   For more information about all the brands and products from American Outdoor Brands, Inc., visit www.aob.com.

Contact: 
Liz Sharp, VP, Investor Relations
[email protected]
(573) 303-4620

 

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SOURCE American Outdoor Brands, Inc.

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Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2020

Q4 FY 2020 Financial Highlights

— Revenue: $1.025 billion

— GAAP earnings per share: $1.26

— Non-GAAP earnings per share: $1.58

FY 2020 Financial Highlights

— Revenue: $3.685 billion

— GAAP earnings per share: $4.27

— Non-GAAP earnings per share: $5.55

— Cash flow from operations: $991.3 million

— Cash and cash equivalents: $1.236 billion

PR Newswire

MOUNTAIN VIEW, Calif., Dec. 2, 2020 /PRNewswire/ — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and full fiscal year 2020. Revenue for the fourth quarter was $1.025 billion, compared to $851.1 million for the fourth quarter of fiscal year 2019. Revenue for fiscal year 2020 was $3.685 billion, an increase of 9.6 percent from $3.361 billion in fiscal year 2019.

“Synopsys is entering fiscal 2021 with considerable financial, technology and customer momentum as we substantially exceeded our original plan, with excellent growth in revenue, non-GAAP operating margin and earnings, and operating cash flow. Given the unprecedented macro challenges in 2020, it is with particular gratitude that we thank our customers, partners, and the entire Synopsys team for this outcome,” said Aart de Geus, chairman and co-CEO of Synopsys. “Looking forward, market demand is strong, fueled by complex technologies and a multitude of high-profile verticals. Our innovation engine continues to deliver highly advanced capabilities throughout the portfolio. In fiscal 2021, we aim to surpass $4 billion in revenue, with continued non-GAAP operating margin expansion, low-to-mid teens non-GAAP earnings per share growth, and more than $1 billion in operating cash flow.”

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2020 was $197.5 million, or $1.26 per share, compared to $160.7 million, or $1.04 per share, for the fourth quarter of fiscal year 2019. GAAP net income for fiscal year 2020 was $664.3 million, or $4.27 per share, compared to $532.4 million, or $3.45 per share, for fiscal year 2019.

Non-GAAP Results

On a non-GAAP basis, net income for the fourth quarter of fiscal year 2020 was $247.7 million, or $1.58 per share, compared to non-GAAP net income of $177.1 million, or $1.15 per share, for the fourth quarter of fiscal year 2019. Non-GAAP net income for fiscal year 2020 was $864.6 million, or $5.55 per share, compared to non-GAAP net income of $702.5 million, or $4.56 per share, for fiscal year 2019.

For a reconciliation between GAAP and non-GAAP results, see “GAAP to Non-GAAP Reconciliation” and the accompanying tables below. 

Business Segments

Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA tools, IP products, system integration solutions and associated services, and (2) Software Integrity, which includes security and quality solutions for software development across many industries. Further information regarding these segments is provided at the end of this press release.

Financial Targets

Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2021. These financial targets assume that there are no changes to the current U.S. government “Entity List” restrictions for the full fiscal year. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see “Forward-Looking Statements” below. 


First Quarter and Fiscal Year 2021 Financial Targets


(in millions except per share amounts)


Q1 FY 2021


FY 2021


Low


High


Low


High

Revenue

$  935

$  965

$ 4,000

$ 4,050

GAAP Expenses

$  767

$  785

$ 3,226

$ 3,271

Non-GAAP Expenses

$  674

$  684

$ 2,825

$ 2,855

Other Income (Expense)

$     (2)

$     –

$    (11)

$      (7)

Normalized Annual Tax Rate (1)

16%

16%

16%

16%

Outstanding Shares (fully diluted)

155

158

156

159

GAAP EPS

$ 1.05

$ 1.16

$   4.39

$   4.54

Non-GAAP EPS

$ 1.44

$ 1.49

$   6.23

$   6.30

Operating Cash Flow

$ 1,200

$ 1,300

(1) Applied in non-GAAP net income calculations

Earnings Call Open to Investors

Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys’ corporate website at www.synopsys.com. A recording of the call will be available by calling +1-866-207-1041 (+1-402-970-0847 for international callers), access code 2523787, beginning at 5:00 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on December 9, 2020. A webcast replay will also be available on the website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2021 in February 2021.  Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and co-chief executive officer, and Trac Pham, chief financial officer, on its website following today’s call.  In addition, Synopsys makes additional information available in a financial supplement and corporate overview presentation, which are also posted on the corporate website.

Effectiveness of Information

The targets included in this press release, the statements made during the earnings conference call and the information contained in the financial supplement and corporate overview presentation (available in the Investor Relations section of Synopsys’ corporate website at www.synopsys.com) represent Synopsys’ expectations and beliefs as of the date of this release only. Although this press release, copies of the prepared remarks of the co-chief executive officer and chief financial officer made during the call, the financial supplement, and the corporate overview presentation will remain available on Synopsys’ website through the date of the first quarter of fiscal year 2021 earnings call in February 2021, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys does not currently intend to report on its progress during the first quarter of fiscal year 2021 or comment to analysts or investors on, or otherwise update, the targets given in this release.

Availability of Final Financial Statements

Synopsys will include final financial statements for fiscal year 2020 in its annual report on Form 10-K to be filed by December 30, 2020.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As the world’s 15th largest software company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and is also growing its leadership in software security and quality solutions. Whether you’re a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing applications that require the highest security and quality, Synopsys has the solutions needed to deliver innovative, high-quality, secure products. Learn more at www.synopsys.com.     

GAAP to Non-GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys’ operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal planning and forecasting purposes. Synopsys’ management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys’ management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) restructuring charges, (v) the effects of certain settlements, final judgments and loss contingencies related to legal proceedings, and (vi) the income tax effect of non-GAAP pre-tax adjustments; and the non-GAAP measures that exclude such information in order to assess the performance of Synopsys’ business and for planning and forecasting in subsequent periods.

Synopsys utilizes a normalized annual non-GAAP tax rate in the calculation of its non-GAAP measures to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items such as tax audit settlements, which can vary in size and frequency and not necessarily reflect our normal operations, and to more clearly align our tax rate with our expected geographic earnings mix.  In projecting this rate, we evaluate our historical and projected mix of U.S. and international profit before tax, excluding the non-GAAP adjustments described above. We also consider other factors including our current tax structure, our existing tax positions, and expected recurring tax incentives. On an annual basis, we re-evaluate this rate for significant events, including changes in tax laws and regulations, that may materially affect our projections.  Based upon our review, our projected normalized annual non-GAAP tax rate remains 16% through fiscal year 2021.

Whenever Synopsys uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below, as well as Item 2.02 of the Current Report on Form 8-K filed on December 2, 2020 for additional information about the measures Synopsys uses to evaluate its core business operations.

Reconciliation of Fourth Quarter and Fiscal Year 2020 Results

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.


GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2020 Results (1)


(unaudited and in thousands, except per share amounts)


Three Months Ended


Twelve Months Ended


October 31,


October 31,


2020


2019


2020


2019

GAAP net income

$   197,455

$   160,714

$   664,347

$   532,367

Adjustments:

Amortization of intangible assets

21,004

23,776

91,281

100,914

Stock compensation

78,429

40,174

248,584

155,001

Acquisition-related costs

3,259

1,782

14,096

5,730

Restructuring charges

(387)

13,440

36,059

47,186

Legal matters

–

–

–

(18,000)

Tax settlement

–

–

–

17,418

Tax adjustments

(52,084)

(62,818)

(189,798)

(138,093)

Non-GAAP net income 

$   247,676

$   177,068

$   864,569

$   702,523


Three Months Ended


Twelve Months Ended


October 31,


October 31,


2020


2019


2020


2019

GAAP diluted net income per share

$         1.26

$         1.04

$         4.27

$         3.45

Adjustments:

Amortization of intangible assets

0.13

0.15

0.59

0.65

Stock compensation

0.50

0.26

1.60

1.01

Acquisition-related costs

0.02

0.01

0.08

0.04

Restructuring charges

–

0.09

0.23

0.31

Legal matters

–

–

–

(0.12)

Tax settlement

–

–

–

0.11

Tax adjustments

(0.33)

(0.40)

(1.22)

(0.89)

Non-GAAP diluted net income per share

$         1.58

$         1.15

$         5.55

$         4.56

Shares used in computing diluted net income per share amounts:

156,825

154,532

155,706

154,190

(1) Synopsys’ fourth quarter of fiscal year 2020 and 2019 ended on October 31, 2020 and November 2, 2019, respectively. For presentation purposes, we refer to the closest calendar month end.

Reconciliation of Fiscal Year 2021 Targets

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.


GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2021 Targets (1)


(in thousands, except per share amounts)


 Range for Three Months Ending 


January 31, 2021


Low


High

Target GAAP expenses

$    767,000

$    785,000

Adjustments:

      Estimated impact of amortization of intangible assets

(19,000)

(22,000)

      Estimated impact of stock compensation

(74,000)

(79,000)

Target non-GAAP expenses

$    674,000

$    684,000


Range for Three Months
 Ending


January 31, 2021


Low


High

Target GAAP earnings per share

$          1.05

$          1.16

Adjustments:

      Estimated impact of amortization of intangible assets

0.14

0.12

      Estimated impact of stock compensation

0.50

0.47

      Estimated impact of tax adjustments

(0.25)

(0.26)

Target non-GAAP earnings per share

$          1.44

$          1.49

Shares used in non-GAAP calculation (midpoint of target range)

156,500

156,500


GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2021 Targets(1)


(in thousands, except per share amounts)


Range for Fiscal Year Ending


October 31, 2021


Low


High

Target GAAP expenses

$ 3,226,000

$ 3,271,000

Adjustments:

      Estimated impact of amortization of intangible assets

(71,000)

(76,000)

      Estimated impact of stock compensation

(330,000)

(340,000)

Target non-GAAP expenses

$ 2,825,000

$ 2,855,000


Range for Fiscal Year Ending


October 31, 2021


Low


High

Target GAAP earnings per share

$          4.39

$          4.54

Adjustments:

     Estimated impact of amortization of intangible assets

0.48

0.45

     Estimated impact of stock compensation

2.16

2.10

     Estimated impact of tax adjustments

(0.80)

(0.79)

Target non-GAAP earnings per share

$          6.23

$          6.30

Shares used in non-GAAP calculation (midpoint of target range)

157,500

157,500

(1) Synopsys’ first fiscal quarter and fiscal year will end on January 30, 2021 and October 30, 2021, respectively. For presentation purposes, we refer to the closest calendar month end. 

Forward-Looking Statements

This press release contains forward-looking statements  including, but not limited to, statements regarding Synopsys’ short-term and long-term financial targets, expectations and objectives; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and buybacks; our expected tax rate; the expected impact of U.S. and foreign government action on our results; and the expected impact of the COVID-19 pandemic. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in our forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks from the effect of the COVID-19 pandemic and the associated economic downturn on our business, operations and financial condition; uncertainty in the growth of the semiconductor and electronics industries; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations as well as actions by the U.S. or foreign governments, such as measures in response to the COVID-19 pandemic or the imposition of additional tariffs or export restrictions; macroeconomic conditions and uncertainty in the global economy; fluctuation of our operating results; increased variability in our revenue due to the adoption of ASC 606, including the resulting increase in recognizing upfront revenue as a percentage of total revenue; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys’ results is included in filings it makes with the Securities and Exchange Commission from time to time, including in the sections entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended October 31, 2019 and its latest Quarterly Report on Form 10-Q. The information provided herein is as of December 2, 2020.  Synopsys undertakes no duty, and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.

 


SYNOPSYS, INC.


Unaudited Consolidated Statements of Operations(1)


(in thousands, except per share amounts)


Three Months Ended 


Twelve Months Ended


October 31,


October 31,


2020


2019


2020


2019

Revenue:

  Time-based products

$  606,598

$ 548,375

$ 2,365,199

$ 2,197,965

  Upfront products

244,155

168,325

735,572

619,791

  Maintenance and service

174,686

134,381

584,510

542,938

      Total revenue

1,025,439

851,081

3,685,281

3,360,694

Cost of revenue:

  Products

142,838

112,964

487,307

459,127

  Maintenance and service

69,991

56,083

254,931

234,196

  Amortization of intangible assets

11,720

13,696

52,452

59,623

     Total cost of revenue

224,549

182,743

794,690

752,946

Gross margin

800,890

668,338

2,890,591

2,607,748

Operating expenses:

  Research and development

339,566

290,503

1,279,022

1,136,932

  Sales and marketing

176,499

161,170

632,010

632,890

  General and administrative

79,796

63,424

284,530

229,218

  Amortization of intangible assets 

9,284

10,080

38,829

41,291

  Restructuring charges

(387)

13,440

36,059

47,186

     Total operating expenses

604,758

538,617

2,270,450

2,087,517

Operating income

196,132

129,721

620,141

520,231

Other income (expense), net

(4,095)

1,902

18,018

25,275

Income before income taxes

192,037

131,623

638,159

545,506

Provision (benefit) for income taxes

(4,989)

(29,091)

(25,288)

13,139

Net income

197,026

160,714

663,447

532,367

Net income (loss) attributed to non-controlling interest

(429)

–

(900)

–

Net income attributed to Synopsys

$  197,455

$ 160,714

$    664,347

$    532,367

Net income per share:

  Basic

$        1.30

$       1.07

$          4.40

$          3.55

  Diluted

$        1.26

$       1.04

$          4.27

$          3.45

Shares used in computing per share amounts:

  Basic

152,349

150,367

151,135

149,872

  Diluted

156,825

154,532

155,706

154,190

(1) Synopsys’ fourth quarter of fiscal year 2020 and 2019 ended on October 31, 2020 and November 2, 2019, respectively. For presentation purposes, we refer to the closest calendar month end.


SYNOPSYS, INC.


Unaudited Consolidated Balance Sheets (1)


(in thousands, except par value amounts)


October 31, 2020


October 31, 2019


ASSETS:

Current assets:

  Cash and cash equivalents

$          1,235,653

$             728,597

  Accounts receivable, net

780,709

553,895

  Inventories, net

192,333

141,518

  Income taxes receivable and prepaid taxes

32,355

24,855

  Prepaid and other current assets

308,167

290,052

          Total current assets

2,549,217

1,738,917

Property and equipment, net

483,818

429,532

Operating lease right-of-use assets, net

465,818

–

Goodwill

3,365,114

3,171,179

Intangible assets, net

254,322

279,374

Long-term prepaid taxes

8,276

15,503

Deferred income taxes

497,546

390,129

Other long-term assets

405,951

380,526

           Total assets

$          8,030,062

$          6,405,160


LIABILITIES AND STOCKHOLDERS’ EQUITY:

Current liabilities:

  Accounts payable and accrued liabilities

$             623,664

$             506,459

  Operating lease liabilities, current

73,173

–

  Accrued income taxes

27,738

15,904

  Deferred revenue

1,388,263

1,212,476

  Short-term debt

27,084

17,614

           Total current liabilities

2,139,922

1,752,453

Operating lease liabilities, non-current

462,411

–

Long-term accrued income taxes

25,178

29,911

Long-term deferred revenue

104,850

90,102

Long-term debt

100,823

120,093

Other long-term liabilities

284,511

323,725

           Total liabilities

3,117,695

2,316,284

Stockholders’ equity:

  Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding

–

–

  Common stock, $0.01 par value: 400,000 shares authorized; 152,618 and

      150,331 shares outstanding, respectively

1,528

1,503

  Capital in excess of par value

1,653,166

1,635,455

  Retained earnings

3,795,397

3,164,144

  Treasury stock, at cost: 4,643 and 6,930 shares, respectively

(488,613)

(625,642)

  Accumulated other comprehensive income (loss) 

(54,074)

(92,447)

           Total Synopsys stockholders’ equity

4,907,404

4,083,013

Non-controlling interest

4,963

5,863

           Total stockholders’ equity

4,912,367

4,088,876

           Total liabilities and stockholders’ equity

$          8,030,062

$          6,405,160

(1) Synopsys’ fiscal year 2020 and 2019 ended on October 31, 2020 and November 2, 2019, respectively. For presentation purposes, we refer to the closest calendar month end.


SYNOPSYS, INC.


Unaudited Consolidated Statements of Cash Flows (1)


(in thousands)


Twelve Months Ended


October 31,


2020


2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income attributed to Synopsys

$    664,347

$ 532,367

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation

209,986

201,676

Reduction of operating lease right-of-use assets

82,895

–

Amortization of capitalized costs to obtain revenue contracts

61,185

62,750

Stock-based compensation

248,584

155,001

Allowance for doubtful accounts

20,875

11,669

(Gain) loss on sale of property and investments

(1,994)

(4,052)

Deferred income taxes

(111,526)

(82,620)

Other non-cash

5,419

(993)

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable

(236,806)

(8,575)

Inventories

(55,024)

(17,396)

Prepaid and other current assets

(11,298)

(49,779)

Other long-term assets

(83,367)

(125,749)

Accounts payable and accrued liabilities

113,773

(19,280)

Operating lease liabilities

(78,578)

–

Income taxes

14,120

19,777

Deferred revenue

148,722

125,717

Net cash provided by operating activities

991,313

800,513

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales of long-term investments

2,151

6,361

Purchases of long-term investments

(2,762)

(3,245)

Purchases of property and equipment

(154,717)

(198,129)

Cash paid for acquisitions and intangible assets, net of cash acquired

(201,045)

(36,605)

Capitalization of software development costs

(4,045)

(4,259)

Net cash used in investing activities

(360,418)

(235,877)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from credit facilities

276,489

192,897

Repayment of debt

(288,879)

(524,063)

Issuances of common stock

197,403

156,364

Payments for taxes related to net share settlement of equity awards

(82,225)

(57,143)

Purchases of treasury stock

(242,078)

(329,185)

Other

(1,316)

(762)

Net cash used in financing activities

(140,606)

(561,892)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

17,154

2,782

Net change in cash, cash equivalents and restricted cash

507,443

5,526

Cash, cash equivalents and restricted cash, beginning of year

730,527

725,001

Cash, cash equivalents and restricted cash, end of period

$ 1,237,970

$ 730,527

(1) Synopsys’ fiscal year 2020 and 2019 ended on October 31, 2020 and November 2, 2019, respectively. For presentation purposes, we refer to the closest calendar month end.


SYNOPSYS, INC.


Business Segment Reporting (1)


(in millions)


Q4’20


Q4’19


FY’20


FY’19

Revenue by segment

– Semiconductor & System Design

$                    934.6

$                    765.8

$                 3,327.2

$                 3,026.1


% of Total

91.1%

90.0%

90.3%

90.0%

– Software Integrity

$                      90.8

$                      85.3

$                    358.1

$                    334.6


% of Total

8.9%

10.0%

9.7%

10.0%


Total segment revenue

$                 1,025.4

$                    851.1

$                 3,685.3

$                 3,360.7

Adjusted operating income by segment

– Semiconductor & System Design

$                    293.5

$                    202.1

$                    990.8

$                    806.6

– Software Integrity

$                        6.2

$                        9.4

$                      40.8

$                      32.2


Total adjusted segment operating income

$                    299.7

$                    211.5

$                 1,031.6

$                    838.8

Adjusted operating margin by segment

– Semiconductor & System Design

31.4%

26.4%

29.8%

26.7%

– Software Integrity

6.8%

11.0%

11.4%

9.6%


Total adjusted segment operating margin

29.2%

24.8%

28.0%

25.0%


Total Adjusted Segment Operating Income Reconciliation (1)(2)


(in millions)


Three Months


Three Months 


Twelve Months 


Twelve Months 


 Ended


Ended


Ended


Ended



October 31, 2020

(3)



October 31, 2019

(3)



October 31, 2020

(3)



October 31, 2019

(3)

GAAP total operating income – as reported

$                    196.1

$                    129.7

$                    620.1

$                    520.2

Other expenses managed at consolidated level

-Amortization of intangible assets

21.0

23.8

91.3

100.9

-Stock compensation

78.4

40.2

248.6

155.0

-Fair value changes in executive deferred compensation plan

1.3

2.6

21.5

27.8

-Acquisition-related costs

3.3

1.8

14.1

5.7

-Restructuring

(0.4)

13.4

36.1

47.2

-Legal matters

–

–

–

(18.0)

Total adjusted segment operating income

$                    299.7

$                    211.5

$             1,031.6

$                    838.8

(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of our business. Quarterly variability, which increases as a result of ASC 606, should be expected. Amounts may not foot due to rounding.

(2) These segment results are consistent with the information required by ASC 280, Segment Reporting. They are presented to reflect the information that is considered by Synopsys’ chief operating decision makers (CODMs) to evaluate the operating performance of its segments. The CODMs do not allocate certain operating expenses managed at a consolidated level to our reportable segments, and as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table above. Amounts may not foot due to rounding.

(3) Synopsys’ fourth quarter of fiscal year 2020 ended on October 31, 2020, and its fiscal year 2019 ended on November 2, 2019. For presentation purposes, we refer to the closest calendar month end.


INVESTOR CONTACT:

Lisa L. Ewbank

Synopsys, Inc.
650-584-1901
[email protected] 


EDITORIAL CONTACT:

Simone Souza

Synopsys, Inc.
650-584-6454
[email protected]

 

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SOURCE Synopsys, Inc.

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Akebia Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

PR Newswire

CAMBRIDGE, Mass., Dec. 2, 2020 /PRNewswire/ — Akebia Therapeutics, Inc. (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, granted 7 newly-hired employees options to purchase an aggregate of 49,000 shares of Akebia’s common stock on November 30, 2020, as inducements material to each such employee’s entering into employment with Akebia. The options were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $3.31 per share, which is equal to the closing price of Akebia’s common stock on the grant date. Each stock option vests over four years, with 25% of the shares vesting on the first anniversary of the grant date and the remaining 75% of shares vesting quarterly thereafter, in each case, subject to the new employee’s continued service with the company. Each stock option has a 10-year term and is subject to the terms and conditions of the company’s Inducement Award Program and a stock option agreement covering the grant.

About Akebia Therapeutics
Akebia Therapeutics, Inc. is a fully integrated biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease. The Company was founded in 2007 and is headquartered in Cambridge, Massachusetts. For more information, please visit our website at www.akebia.com, which does not form a part of this release.

Akebia Therapeutics Contact

Kristen K. Sheppard, Esq.

[email protected] 

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SOURCE Akebia Therapeutics

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Supermicro Enterprise-Class 4-Socket SuperServer Now Certified for SAP and Oracle Workloads

SAP and Oracle Customers Can Immediately Deploy Market-Leading 2U 4-Socket Server Platform – Based on the 3rd Gen Intel® Xeon® Scalable Processor (code name “Cooper Lake”) — for Mission-Critical Workloads in Enterprise, Cloud-Scale, or Hybrid Environments

PR Newswire

SAN JOSE, Calif., Dec. 2, 2020 /PRNewswire/ — Super Micro Computer, Inc. (Nasdaq: SMCI), a global leader in enterprise computing, storage, networking solutions and green computing technology, today announced that its 4-socket server platform, powered by advanced 3rd Gen Intel Xeon Scalable processors with built-in AI acceleration, is now certified for SAP HANA as well as Oracle Linux and virtualization. Shipping in volume, the 2U 4-socket server, combined with advanced enterprise software, enables customers to leverage the value, benefit, and simplicity of these turn-key solutions for computationally intensive SAP and Oracle workloads.

“Supermicro’s 4-socket server, based on the 3rd Gen Intel Xeon scalable processor, has shown great market penetration and positive feedback from enterprise customers,” said Raju Penumatcha, senior vice president and chief product officer at Supermicro. “With the addition of SAP and Oracle certifications, customers can quickly use the 4-socket platform to support top enterprise and cloud requirements.” 

The 4-socket server features the latest Intel CPU and storage technologies: up to 112 Xeon cores and up to 18TB of system memory when provisioned in a mix of DDR and Intel 2nd Generation Optane Data Center Persistent Memory. CPU interconnects increases from 3 UPI lanes to 6UPI lanes for vastly improved system latency and throughput.  The system supports up to 24NVMe drives and 100Gb/s networking.  

There is an industry transition underway where 4-socket x86 clusters are replacing Unix stacks in enterprises and financial institutions with high availability and performance that can match or outperform traditional mainframes. Supermicro has been collaborating with companies developing and testing with the 4-socket platforms for traditional mainframe use cases such as real-time fraud detection for financial institutions, high-frequency trading, and real-time routing for the largest ride-sharing companies in the market today. 

“At N5 Technologies, our Rumi™ platform enables businesses to drive in-the-moment business actions by deriving contextual and relevant insights from massive volumes of data in real-time,” said Girish Mutreja, CEO N5 Technologies. “With the Supermicro 4-socket platform, we achieved astonishing, mainframe-class, transactional performance with blazing fast response, against a massive 50TB of data Supermicro’s 4-socket line of servers provide amazing in-memory computing performance and strong value proposition for any enterprises that require serious computing power.”

For more information on the Supermicro 4-socket server, visit here.

Follow Supermicro on LinkedIn, Twitter, and Facebook to receive their latest news and announcements.

About Super Micro Computer, Inc.

Supermicro (Nasdaq: SMCI), the leading innovator in high-performance, high-efficiency server and storage technology is a premier provider of advanced server Building Block Solutions® for Enterprise Data Center, Cloud Computing, Artificial Intelligence, and Edge Computing Systems worldwide. Supermicro is committed to protecting the environment through its “We Keep IT Green®” initiative and provides customers with the most energy-efficient, environmentally-friendly solutions available on the market.

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names and trademarks are the property of their respective owners.

SMCI-F

 

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SOURCE Super Micro Computer, Inc.

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Ichor Expands Precision Machining Capability Through Acquisition of Mexico Division of CR Machine

Ichor Expands Precision Machining Capability Through Acquisition of Mexico Division of CR Machine

FREMONT, Calif.–(BUSINESS WIRE)–
Ichor Holdings, Ltd. (NASDAQ: ICHR), a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment, today announced that it has acquired the Nogales, Mexico division of Massachusetts-based CR Machine for an undisclosed amount. The acquisition, which closed on December 1st, was financed with cash on hand.

CR Machine’s Mexico division, which has year-to-date revenues less than $10 million, primarily provides precision-machined components supporting the semiconductor capital equipment market.

“We are very pleased to announce the closing of this acquisition, which supports our strategic objective to grow the components segments of our business,” said Jeff Andreson, chief executive officer of Ichor. “Being a well-established provider of precision-machined components, CR Machine’s Mexico division is a great fit with our capabilities and our key M&A strategies: to acquire businesses that expand our served markets, capabilities, and product portfolio, as well as expand our customer and geographic footprint.”

About Ichor Holdings

We are a leader in the design, engineering and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment. Our product offerings include gas and chemical delivery subsystems, collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. Our gas delivery subsystems deliver, monitor and control precise quantities of the specialized gases used in semiconductor manufacturing processes such as etch and deposition. Our chemical delivery subsystems precisely blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes such as chemical-mechanical planarization, electroplating, and cleaning. We also manufacture precision-machined components, weldments, and proprietary products for use in fluid delivery systems for direct sales to our customers, as well as certain components for internal use in fluid delivery systems and for direct sales to our customers. This vertically-integrated portion of our business is primarily focused on metal and plastic parts that are used in gas and chemical systems, respectively. We are headquartered in Fremont, CA. ichorsystems.com.

Larry Sparks, CFO 510-897-5200

Claire McAdams, IR & Strategic Initiatives 530-265-9899

[email protected]

KEYWORDS: California Mexico United States Central America North America

INDUSTRY KEYWORDS: Semiconductor Manufacturing Technology Engineering Chemicals/Plastics

MEDIA:

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CrowdStrike Reports Fiscal Third Quarter 2021 Financial Results

CrowdStrike Reports Fiscal Third Quarter 2021 Financial Results

  • Achieved $907 million in ARR and net new ARR of $117 million
  • Added 1,186 net new subscription customers
  • Continued strong module adoption as customers with four or more modules increased to 61%, five or more modules increased to 44% and six or more modules increased to 22%

SUNNYVALE, Calif.–(BUSINESS WIRE)–
CrowdStrike Holdings, Inc., (Nasdaq: CRWD), a leader in cloud-delivered endpoint and cloud workload protection, today announced financial results for the third quarter of its fiscal 2021, ended October 31, 2020.

“CrowdStrike delivered a record third quarter with results exceeding our expectations across the board. Broad-based demand and strength in multiple areas of the business fueled our rapid 87% year-over-year subscription revenue growth, record net new ARR of $117 million and record 1,186 net new subscription customers. CrowdStrike’s robust growth at scale underscores our growing leadership in the Security Cloud category and the immense value we deliver to customers seeking to transform, consolidate and fortify their security posture,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer.

“Our industry-leading cloud-native platform powered by Threat Graph enables us to rapidly bring new modules to market and drive customer adoption. With our expanding portfolio of capabilities, which includes three recently announced new modules and the addition of leading Zero Trust capabilities through our acquisition of Preempt Security, we believe we are well-positioned to continue our momentum and extend our Security Cloud leadership,” concluded Kurtz.

Commenting on the company’s financial results, Burt Podbere, CrowdStrike’s chief financial officer, added, “We continued to drive operating leverage and record unit economics. As a result of our strong execution in the quarter, we reduced GAAP operating loss year-over-year, achieved non-GAAP operating profitability for the third consecutive quarter and generated positive operating and free cash flow for the fifth consecutive quarter.”

Third Quarter Fiscal 2021 Financial Highlights

  • Revenue: Total revenue was $232.5 million, an 86% increase, compared to $125.1 million in the third quarter of fiscal 2020. Subscription revenue was $213.5 million, an 87% increase, compared to $114.2 million in the third quarter of fiscal 2020.
  • Annual Recurring Revenue (ARR) increased 81% year-over-year and grew to $907.4 million as of October 31, 2020, of which $116.8 million was net new ARR added in the quarter, including $6.8 million from the acquisition of Preempt Security.
  • Subscription Gross Margin: GAAP subscription gross margin was 77%, compared to 74% in the third quarter of fiscal 2020. Non-GAAP subscription gross margin was 78%, compared to 76% in the third quarter of fiscal 2020.
  • Income/Loss from Operations: GAAP loss from operations was $24.2 million, compared to $38.5 million in the third quarter of fiscal 2020. Non-GAAP income from operations was $18.9 million, compared to a loss of $16.5 million in the third quarter of fiscal 2020.
  • Net Income/Loss: GAAP net loss was $24.5 million, compared to $35.5 million in the third quarter of fiscal 2020. GAAP net loss per share, basic and diluted, was $0.11, compared to $0.17 in the third quarter of fiscal 2020. Non-GAAP net income was $18.6 million, compared to a loss of $13.4 million in the third quarter of fiscal 2020. Non-GAAP net income per share, diluted, was $0.08, compared to a loss of $0.07 in the third quarter of fiscal 2020.
  • Cash Flow: Net cash generated from operations was $88.5 million, compared to $38.6 million in the third quarter of fiscal 2020. Free cash flow was $76.1 million, compared to $7.0 million in the third quarter of fiscal 2020.
  • Cash and Cash Equivalents was $1,060 million as of October 31, 2020.

Recent Highlights

  • Added 1,186 net new subscription customers in the quarter, including 64 from the acquisition of Preempt Security, for a total of 8,416 subscription customers as of October 31, 2020, representing 85% growth year-over-year.
  • CrowdStrike’s subscription customers that have adopted four or more modules, five or more modules and six or more modules increased to 61%, 44%, and 22%, respectively, as of October 31, 2020.
  • Acquired Preempt Security, a leading provider of Zero Trust and conditional access technology for real-time access control and threat prevention.
  • Announced an alliance with EY to transform cyber risk management capabilities. The new alliance will help enterprises identify, prevent and respond to cyber threats.
  • Joined the ServiceNow® Service Graph Connector Program. The new integration provides users the ability to integrate device data from the CrowdStrike Falcon® platform into their incident response process and improve both the security and IT operations outcomes.
  • Expanded support for Amazon Web Services with integrations for the compute services and cloud services categories, enhancing development, security and operations (DevSecOps) to enable faster and more secure innovation that is easier to deploy.

Financial Outlook

CrowdStrike is providing the following guidance for the fourth quarter of fiscal 2021 (ending January 31, 2021) and increasing its guidance for fiscal year 2021 (ending January 31, 2021):

 

Q4 FY21

Guidance

 

Full Year FY21

Guidance

Total revenue

$245.5 – $250.5 million

 

$855.0 – $860.0 million

Non-GAAP income from operations

$18.5 – $22.1 million

 

$46.4 – $50.0 million

Non-GAAP net income

$17.7 – $21.3 million

 

$48.8 – $52.4 million

Non-GAAP net income per share, diluted

$0.08 – $0.09

 

$0.21 – $0.22

Weighted average shares used in computing Non-GAAP net income per share attributable to common stockholders, diluted

236 million

 

233 million

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization expense of acquired intangible assets, and acquisition-related expenses. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP loss from operations, non-GAAP net loss, and non-GAAP net loss per share is not available without unreasonable effort.

Conference Call Information

CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the third quarter of fiscal 2021 and outlook for its fiscal fourth quarter and year 2021 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.

Date:

     

December 2, 2020

Time:

     

2:00 p.m. Pacific time / 5:00 p.m. Eastern time

Dial-in number:

     

409-937-8967, conference ID: 1157826

Webcast:

     

ir.crowdstrike.com

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our future financial and operating performance, including our financial outlook for the fiscal fourth quarter and fiscal year 2021. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: the impact of the COVID-19 pandemic on our and our customers’ business; our limited operating history; our ability to successfully integrate acquisitions; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the risk of defects, errors, or vulnerabilities; our ability to attract new and retain existing customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; our ability to collaborate and integrate our products with offerings from other parties to deliver benefits to customers; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and general market, political, economic, and business conditions, including those related to COVID-19.

Additional risks and uncertainties that could affect our financial results are included in the filings we make with the Securities and Exchange Commission (“SEC”) from time to time, particularly under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, including our most recently filed Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and subsequent filings.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the “Explanation of Non-GAAP Financial Measures” section of this press release.

Channels for Disclosure of Information

We intend to announce material information to the public through the CrowdStrike Investor Relations website ir.crowdstrike.com, SEC filings, press releases, public conference calls, and public webcasts. We use these channels, as well as social media and our blog, to communicate with our investors, customers, and the public about our company, our offerings, and other issues. It is possible that the information we post on social media and our blog could be deemed to be material information. As such, we encourage investors, the media, and others to follow the channels listed above, including the social media channels listed on our investor relations website, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page on our website.

About CrowdStrike Holdings

CrowdStrike® provides cloud-delivered endpoint and cloud workload protection. Leveraging artificial intelligence (AI), the CrowdStrike Falcon® platform protects customers against cyberattacks on endpoints on or off the network by offering visibility and protection across the enterprise.

Copyright © 2020 CrowdStrike, Inc. All rights reserved. CrowdStrike® and CrowdStrike Falcon® are the registered trademarks of CrowdStrike, Inc. CrowdStrike owns other trademarks and service marks, and may use the brands of third parties to identify their products and services.

CROWDSTRIKE HOLDINGS, INC.

 

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

Revenue

 

 

 

 

 

 

 

Subscription

$

213,530

 

 

$

114,221

 

 

$

560,008

 

 

$

297,787

 

Professional services

18,930

 

 

10,898

 

 

49,501

 

 

31,517

 

Total revenue

232,460

 

 

125,119

 

 

609,509

 

 

329,304

 

Cost of revenue

 

 

 

 

 

 

 

Subscription (1)(2)

49,583

 

 

29,221

 

 

130,864

 

 

77,858

 

Professional services (1)

11,944

 

 

8,134

 

 

31,949

 

 

20,353

 

Total cost of revenue

61,527

 

 

37,355

 

 

162,813

 

 

98,211

 

Gross profit

170,933

 

 

87,764

 

 

446,696

 

 

231,093

 

Operating expenses

 

 

 

 

 

 

 

Sales and marketing (1)(2)

105,602

 

 

68,675

 

 

288,867

 

 

190,792

 

Research and development (1)(2)

57,539

 

 

35,992

 

 

148,600

 

 

91,497

 

General and administrative (1)(3)

31,951

 

 

21,615

 

 

85,955

 

 

63,737

 

Total operating expenses

195,092

 

 

126,282

 

 

523,422

 

 

346,026

 

Loss from operations

(24,159)

 

 

(38,518)

 

 

(76,726)

 

 

(114,933)

 

Interest expense

(193)

 

 

(132)

 

 

(510)

 

 

(297)

 

Other income, net

272

 

 

3,579

 

 

5,537

 

 

3,523

 

Loss before provision for income taxes

(24,080)

 

 

(35,071)

 

 

(71,699)

 

 

(111,707)

 

Provision for income taxes

(451)

 

 

(434)

 

 

(1,928)

 

 

(1,664)

 

Net loss

$

(24,531)

 

 

$

(35,505)

 

 

$

(73,627)

 

 

$

(113,371)

 

Net loss per share attributable to Class A and Class B common stockholders, basic and diluted

$

(0.11)

 

 

$

(0.17)

 

 

$

(0.34)

 

 

$

(0.89)

 

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted

219,401

 

 

204,096

 

 

216,432

 

 

128,009

 

_____________________________

(1) Includes stock-based compensation expense as follows:

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

 

(in thousands)

Subscription cost of revenue

$

3,226

 

 

$

1,666

 

 

$

7,856

 

 

$

3,164

 

Professional services cost of revenue

1,551

 

 

784

 

 

3,947

 

 

1,531

 

Sales and marketing

12,811

 

 

7,355

 

 

35,101

 

 

15,511

 

Research and development

11,771

 

 

4,696

 

 

25,700

 

 

10,353

 

General and administrative

11,251

 

 

7,465

 

 

29,357

 

 

25,018

 

Total stock-based compensation expense

$

40,610

 

 

$

21,966

 

 

$

101,961

 

 

$

55,577

 

(2) Includes amortization of acquired intangible assets as follows:

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

 

(in thousands)

Subscription cost of revenue

$

272

 

 

$

61

 

 

$

397

 

 

$

262

 

Sales and marketing

91

 

 

30

 

 

153

 

 

92

 

Research and development

9

 

 

10

 

 

29

 

 

31

 

Total amortization of purchased intangibles

$

372

 

 

$

101

 

 

$

579

 

 

$

385

 

(3) Includes acquisition-related expenses as follows:

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

 

(in thousands)

General and administrative

$

2,119

 

 

$

—

 

 

$

2,119

 

 

$

—

 

Total acquisition-related expenses

$

2,119

 

 

$

—

 

 

$

2,119

 

 

$

—

 

CROWDSTRIKE HOLDINGS, INC.

 

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

October 31,

 

January 31,

 

2020

 

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,059,926

 

 

$

264,798

 

Marketable securities

—

 

 

647,266

 

Accounts receivable, net

172,775

 

 

164,987

 

Deferred contract acquisition costs, current

62,422

 

 

42,971

 

Prepaid expenses and other current assets

45,673

 

 

51,614

 

Total current assets

1,340,796

 

 

1,171,636

 

Strategic investments

2,500

 

 

1,000

 

Property and equipment, net

162,371

 

 

136,078

 

Operating lease right-of-use assets

38,376

 

 

—

 

Deferred contract acquisition costs, noncurrent

91,585

 

 

71,235

 

Goodwill

83,132

 

 

7,722

 

Intangible assets, net

16,356

 

 

527

 

Other assets

14,393

 

 

16,708

 

Total assets

$

1,749,509

 

 

$

1,404,906

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

7,494

 

 

$

1,345

 

Accrued expenses

39,975

 

 

30,355

 

Accrued payroll and benefits

56,468

 

 

36,810

 

Operating lease liabilities, current

8,646

 

 

—

 

Deferred revenue

579,671

 

 

412,985

 

Other current liabilities

9,785

 

 

11,601

 

Total current liabilities

702,039

 

 

493,096

 

Deferred revenue, noncurrent

183,003

 

 

158,183

 

Operating lease liabilities, noncurrent

34,006

 

 

—

 

Other liabilities, noncurrent

15,676

 

 

11,020

 

Total liabilities

934,724

 

 

662,299

 

Commitments and contingencies

 

 

 

Stockholders’ Equity

 

 

 

Common stock, Class A and Class B

111

 

 

106

 

Additional paid-in capital

1,523,873

 

 

1,378,479

 

Accumulated deficit

(711,114)

 

 

(637,487)

 

Accumulated other comprehensive income

615

 

 

1,009

 

Total CrowdStrike Holdings, Inc. stockholders’ equity

813,485

 

 

742,107

 

Non-controlling interest

1,300

 

 

500

 

Total stockholders’ equity

814,785

 

 

742,607

 

Total liabilities and stockholders’ equity

$

1,749,509

 

 

$

1,404,906

 

CROWDSTRIKE HOLDINGS, INC.

 

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Nine Months Ended October 31,

 

2020

 

2019

Operating activities

 

 

 

Net loss

$

(73,627)

 

 

$

(113,371)

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

27,728

 

 

16,023

 

Amortization of intangible assets

579

 

 

385

 

Amortization of deferred contract acquisition costs

44,940

 

 

24,125

 

Non-cash operating lease cost

7,666

 

 

—

 

Change in fair value of redeemable convertible preferred stock warrant liability

—

 

 

6,022

 

Provision for bad debts

(448)

 

 

413

 

Stock-based compensation expense

101,961

 

 

55,577

 

Gain on sale of debt securities, net

(1,347)

 

 

—

 

Accretion (amortization) of marketable securities purchased at a discount

578

 

 

(1,313)

 

Non-cash interest expense

506

 

 

293

 

Changes in operating assets and liabilities

 

 

 

Accounts receivable

(6,155)

 

 

(53,631)

 

Deferred contract acquisition costs

(84,741)

 

 

(55,238)

 

Prepaid expenses and other assets

1,487

 

 

(19,883)

 

Accounts payable

6,556

 

 

(3,773)

 

Accrued expenses and other current liabilities

1,643

 

 

3,405

 

Accrued payroll and benefits

18,712

 

 

17,621

 

Operating lease liabilities

(1,434)

 

 

—

 

Deferred revenue

189,582

 

 

157,239

 

Other liabilities

7,917

 

 

(58)

 

Net cash provided by operating activities

242,103

 

 

33,836

 

Investing activities

 

 

 

Purchases of property and equipment

(40,245)

 

 

(66,848)

 

Capitalized internal-use software

(6,345)

 

 

(5,208)

 

Business acquisition, net of cash acquired

(85,469)

 

 

—

 

Purchase of strategic investments

(1,500)

 

 

—

 

Purchases of marketable securities

(84,904)

 

 

(187,697)

 

Proceeds from sales of marketable securities

639,586

 

 

4,473

 

Maturities of marketable securities

91,605

 

 

197,764

 

Net cash provided by (used in) investing activities

512,728

 

 

(57,516)

 

Financing activities

 

 

 

Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts

—

 

 

665,092

 

Payments of deferred offering costs

—

 

 

(5,872)

 

Proceeds from issuance of common stock upon exercise of stock options

21,522

 

 

9,350

 

Proceeds from the issuance of common stock upon exercise of early exercisable stock options

—

 

 

10,264

 

Proceeds from issuance of common stock under the employee stock purchase plan

17,284

 

 

—

 

Capital contributions from non-controlling interest holders

800

 

 

—

 

Net cash provided by financing activities

39,606

 

 

678,834

 

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

691

 

 

43

 

 

 

 

 

Net increase in cash and cash equivalents

795,128

 

 

655,197

 

 

 

 

 

Cash and cash equivalents, beginning of period

264,798

 

 

88,408

 

Cash and cash equivalents, end of period

$

1,059,926

 

 

$

743,605

 

CROWDSTRIKE HOLDINGS, INC.

 

Non-GAAP Financial Measures with Reconciliation to GAAP

(in thousands, except percentages)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

GAAP subscription revenue

$

213,530

 

 

$

114,221

 

 

$

560,008

 

 

$

297,787

 

 

 

 

 

 

 

 

 

GAAP subscription gross profit

$

163,947

 

 

$

85,000

 

 

$

429,144

 

 

$

219,929

 

Add: Stock-based compensation expense

3,226

 

 

1,666

 

 

7,856

 

 

3,164

 

Add: Amortization of acquired intangible assets

272

 

 

61

 

 

397

 

 

262

 

Non-GAAP subscription gross profit

$

167,445

 

 

$

86,727

 

 

$

437,397

 

 

$

223,355

 

 

 

 

 

 

 

 

 

GAAP subscription gross margin

77

%

 

74

%

 

77

%

 

74

%

 

 

 

 

 

 

 

 

Non-GAAP subscription gross margin

78

%

 

76

%

 

78

%

 

75

%

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

GAAP total revenue

$

232,460

 

 

$

125,119

 

 

$

609,509

 

 

$

329,304

 

 

 

 

 

 

 

 

 

GAAP loss from operations

$

(24,159)

 

 

$

(38,518)

 

 

$

(76,726)

 

 

$

(114,933)

 

Add: Stock-based compensation expense

40,610

 

 

21,966

 

 

101,961

 

 

55,577

 

Add: Amortization of acquired intangible assets

372

 

 

101

 

 

579

 

 

385

 

Add: Acquisition-related expenses

2,119

 

 

—

 

 

2,119

 

 

—

 

Non-GAAP income (loss) from operations

$

18,942

 

 

$

(16,451)

 

 

$

27,933

 

 

$

(58,971)

 

 

 

 

 

 

 

 

 

GAAP operating margin

(10)

%

 

(31)

%

 

(13)

%

 

(35)

%

 

 

 

 

 

 

 

 

Non-GAAP operating margin

8

%

 

(13)

%

 

5

%

 

(18)

%

CROWDSTRIKE HOLDINGS, INC.

 

Non-GAAP Financial Measures with Reconciliation to GAAP (Continued)

(in thousands, except percentages and per share amounts)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

GAAP net loss

$

(24,531)

 

 

$

(35,505)

 

 

$

(73,627)

 

 

$

(113,371)

 

 

 

 

 

 

 

 

 

Add: Stock-based compensation expense

$

40,610

 

 

$

21,966

 

 

$

101,961

 

 

$

55,577

 

Add: Amortization of acquired intangible assets

372

 

 

101

 

 

579

 

 

385

 

Add: Acquisition-related expenses

2,119

 

 

—

 

 

2,119

 

 

—

 

Less: Gain on settlement of lawsuit

—

 

 

—

 

 

—

 

 

(1,250)

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss)

$

18,570

 

 

$

(13,438)

 

 

$

31,032

 

 

$

(58,659)

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing GAAP net loss per share attributable to Class A and Class B common stockholders, basic and diluted

219,401

 

 

204,096

 

 

216,432

 

 

128,009

 

Weighted-average shares used in computing Non-GAAP net income (loss) per share attributable to Class A and Class B common stockholders, basic

219,401

 

 

204,096

 

 

216,432

 

 

128,009

 

Weighted-average shares used in computing Non-GAAP net income (loss) per share attributable to Class A and Class B common stockholders, diluted

234,626

 

 

204,096

 

 

232,969

 

 

128,009

 

 

 

 

 

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.11)

 

 

$

(0.17)

 

 

$

(0.34)

 

 

$

(0.89)

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) per share attributable to common stockholders, basic

$

0.08

 

 

$

(0.07)

 

 

$

0.14

 

 

$

(0.46)

 

Non-GAAP net income (loss) per share attributable to common stockholders, diluted

$

0.08

 

 

$

(0.07)

 

 

$

0.13

 

 

$

(0.46)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

GAAP total revenue

$

232,460

 

 

$

125,119

 

 

$

609,509

 

 

$

329,304

 

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

88,501

 

 

38,635

 

 

242,103

 

 

33,836

 

Less: Purchases of property and equipment

(9,911)

 

 

(29,689)

 

 

(40,245)

 

 

(66,848)

 

Less: Capitalized internal-use software

(2,495)

 

 

(1,898)

 

 

(6,345)

 

 

(5,208)

 

Free cash flow

$

76,095

 

 

$

7,048

 

 

$

195,513

 

 

$

(38,220)

 

 

 

 

 

 

 

 

 

GAAP net cash provided by (used in) investing activities

$

(98,375)

 

 

$

(27,262)

 

 

$

512,728

 

 

$

(57,516)

 

GAAP net cash provided by (used in) financing activities

$

5,171

 

 

$

(968)

 

 

$

39,606

 

 

$

678,834

 

 

 

 

 

 

 

 

 

GAAP net cash used in operating activities as a percentage of revenue

38

%

 

31

%

 

40

%

 

10

%

Less: Purchases of property and equipment as a percentage of revenue

(4)

%

 

(24)

%

 

(7)

%

 

(20)

%

Less: Capitalized internal-use software as a percentage of revenue

(1)

%

 

(2)

%

 

(1)

%

 

(2)

%

Free cash flow margin

33

%

 

6

%

 

32

%

 

(12)

%

CROWDSTRIKE HOLDINGS, INC.

 

Statements of Operations: GAAP to Non-GAAP Reconciliations

(in thousands)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

GAAP cost of revenue

$

61,527

 

 

$

37,355

 

 

$

162,813

 

 

$

98,211

 

Less:

 

 

 

 

 

 

 

Stock based compensation expense

4,777

 

 

2,450

 

 

11,803

 

 

4,695

 

Amortization of acquired intangible assets

272

 

 

61

 

 

397

 

 

262

 

Non-GAAP cost of revenue

$

56,478

 

 

$

34,844

 

 

$

150,613

 

 

$

93,254

 

 

 

 

 

 

 

 

 

GAAP subscription gross profit

$

163,947

 

 

$

85,000

 

 

$

429,144

 

 

$

219,929

 

Add:

 

 

 

 

 

 

 

Stock based compensation expense

3,226

 

 

1,666

 

 

7,856

 

 

3,164

 

Amortization of acquired intangible assets

272

 

 

61

 

 

397

 

 

262

 

Non-GAAP subscription gross profit

$

167,445

 

 

$

86,727

 

 

$

437,397

 

 

$

223,355

 

 

 

 

 

 

 

 

 

GAAP professional services gross profit

$

6,986

 

 

$

2,764

 

 

$

17,552

 

 

$

11,164

 

Add:

 

 

 

 

 

 

 

Stock based compensation expense

1,551

 

 

784

 

 

3,947

 

 

1,531

 

Non-GAAP professional services gross profit

$

8,537

 

 

$

3,548

 

 

$

21,499

 

 

$

12,695

 

 

 

 

 

 

 

 

 

GAAP sales and marketing operating expenses

$

105,602

 

 

$

68,675

 

 

$

288,867

 

 

$

190,792

 

Less:

 

 

 

 

 

 

 

Stock based compensation expense

12,811

 

 

7,355

 

 

35,101

 

 

15,511

 

Amortization of acquired intangible assets

91

 

 

30

 

 

153

 

 

92

 

Non-GAAP sales and marketing operating expenses

$

92,700

 

 

$

61,290

 

 

$

253,613

 

 

$

175,189

 

 

 

 

 

 

 

 

 

GAAP research and development operating expenses

$

57,539

 

 

$

35,992

 

 

$

148,600

 

 

$

91,497

 

Less:

 

 

 

 

 

 

 

Stock based compensation expense

11,771

 

 

4,696

 

 

25,700

 

 

10,353

 

Amortization of acquired intangible assets

9

 

 

10

 

 

29

 

 

31

 

Non-GAAP research and development operating expenses

$

45,759

 

 

$

31,286

 

 

$

122,871

 

 

$

81,113

 

 

 

 

 

 

 

 

 

GAAP general and administrative operating expenses

$

31,951

 

 

$

21,615

 

 

$

85,955

 

 

$

63,737

 

Less:

 

 

 

 

 

 

 

Stock based compensation expense

11,251

 

 

7,465

 

 

29,357

 

 

25,018

 

Acquisition-related expenses

2,119

 

 

—

 

 

2,119

 

 

—

 

Non-GAAP general and administrative operating expenses

$

18,581

 

 

$

14,150

 

 

$

54,479

 

 

$

38,719

 

 

 

 

 

 

 

 

 

GAAP loss from operations

$

(24,159)

 

 

$

(38,518)

 

 

$

(76,726)

 

 

$

(114,933)

 

Add:

 

 

 

 

 

 

 

Stock based compensation expense

40,610

 

 

21,966

 

 

101,961

 

 

55,577

 

Amortization of acquired intangible assets

372

 

 

101

 

 

579

 

 

385

 

Acquisition-related expenses

2,119

 

 

—

 

 

2,119

 

 

—

 

Non-GAAP income (loss) from operations

$

18,942

 

 

$

(16,451)

 

 

$

27,933

 

 

$

(58,971)

 

CROWDSTRIKE HOLDINGS, INC.

 

Statements of Operations: GAAP to Non-GAAP Reconciliations (continued)

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2020

 

2019

 

2020

 

2019

GAAP net loss

$

(24,531)

 

 

$

(35,505)

 

 

$

(73,627)

 

 

$

(113,371)

 

Add:

 

 

 

 

 

 

 

Stock based compensation expense

40,610

 

 

21,966

 

 

101,961

 

 

55,577

 

Amortization of acquired intangible assets

372

 

 

101

 

 

579

 

 

385

 

Acquisition-related expenses

2,119

 

 

—

 

 

2,119

 

 

—

 

Less:

 

 

 

 

 

 

 

Gain on settlement of lawsuit

—

 

 

—

 

 

—

 

 

(1,250)

 

Non-GAAP net income (loss)

$

18,570

 

 

$

(13,438)

 

 

$

31,032

 

 

$

(58,659)

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing basic net income (loss) per share (GAAP and Non-GAAP)

219,401

 

204,096

 

216,432

 

128,009

 

 

 

 

 

 

 

 

GAAP basic net loss per share

$

(0.11)

 

 

$

(0.17)

 

 

$

(0.34)

 

 

$

(0.89)

 

 

 

 

 

 

 

 

 

Non-GAAP basic net income (loss) per share

$

0.08

 

 

$

(0.07)

 

 

$

0.14

 

 

$

(0.46)

 

 

 

 

 

 

 

 

 

GAAP diluted loss per common share

$

(0.11)

 

 

$

(0.17)

 

 

$

(0.34)

 

 

$

(0.89)

 

Stock-based compensation

0.17

 

 

0.11

 

 

0.44

 

 

0.43

 

Amortization of acquired intangible assets

—

 

 

—

 

 

—

 

 

—

 

Acquisition-related expenses

0.01

 

 

—

 

 

0.01

 

 

—

 

Gain on settlement of lawsuit

—

 

 

—

 

 

—

 

 

0.01

 

Provision for income taxes (1)

—

 

 

—

 

 

—

 

 

—

 

Adjustment to fully diluted earnings per share (2)

0.01

 

 

(0.01)

 

 

0.02

 

 

(0.01)

 

Non-GAAP diluted income (loss) per common share

$

0.08

 

 

$

(0.07)

 

 

$

0.13

 

 

$

(0.46)

 

 

 

 

 

 

 

 

 

Weighted-average shares used in diluted net income (loss) per share calculation:

 

 

 

 

 

 

 

GAAP

219,401

 

 

204,096

 

 

216,432

 

 

128,009

 

Non-GAAP

234,626

 

 

204,096

 

 

232,969

 

 

128,009

 

_____________________________

  1. We use our GAAP provision for income taxes for the purpose of determining our non-GAAP income tax expense. The difference between our GAAP and non-GAAP income tax expense represents the excess tax deduction of stock-based compensation expense recognized in foreign jurisdictions. The income tax benefit related to stock-based compensation expense included in the GAAP provision for income taxes was not material for all periods presented.
  2. For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total to diluted Non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share and because of rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share.

###

Explanation of Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our financial performance and liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Non-GAAP Subscription Gross Profit and Non-GAAP Subscription Gross Margin

We define non-GAAP subscription gross profit and non-GAAP subscription gross margin as GAAP subscription gross profit and GAAP subscription gross margin, respectively, excluding stock-based compensation expense and amortization of acquired intangible assets. We believe non-GAAP subscription gross profit and non-GAAP subscription gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these measures eliminate the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Income (Loss) from Operations

We define non-GAAP income (loss) from operations as GAAP income (loss) from operations excluding stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related expenses. We believe non-GAAP income (loss) from operations provides our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as this metric generally eliminates the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Net Income (Loss) per Share Attributable to Common Stockholders, Basic and Diluted

We define non-GAAP net income (loss) per share attributable to common stockholders, as non-GAAP net income (loss) divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially diluted common stock equivalents outstanding during the period. We may periodically incur charges or receive payments in connection with litigation settlements. We exclude these charges and payments received from non-GAAP net income (loss) when associated with a significant settlement because we do not believe they are reflective of ongoing business and operating results.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities less purchases of property and equipment and capitalized internal-use software. We monitor free cash flow as one measure of our overall business performance, which enables us to analyze our future performance without the effects of non-cash items and allow us to better understand the cash needs of our business. While we believe that free cash flow is useful in evaluating our business, free cash flow is a non-GAAP financial measure that has limitations as an analytical tool, and free cash flow should not be considered as an alternative to, or substitute for, net cash provided by operating activities in accordance with GAAP. The utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for any given period. In addition, other companies, including companies in our industry, may calculate free cash flow differently or not at all, which reduces the usefulness of free cash flow as a tool for comparison.

Explanation of Operational Measures

Annual Recurring Revenue

ARR is calculated as the annualized value of our customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that we are negotiating a renewal with a customer after the expiration of the subscription, we continue to include that revenue in ARR if we are actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies us that it is not renewing its subscription.

Magic Number

Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter’s Subscription Revenue and the prior quarter’s Subscription Revenue, and then dividing the resulting number by the previous quarter’s Non-GAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter Subscription Revenue – Prior Quarter Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.

Investor Relations Contact

CrowdStrike Holdings, Inc.

Maria Riley, Senior Director of Investor Relations

[email protected]

669-721-0742

Press Contact

CrowdStrike Holdings, Inc.

Ilina Cashiola, Senior Director of Public Relations

[email protected]

202-340-0517

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Technology Data Management

MEDIA:

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Chegg Appoints Sarah Bond to Board of Directors

Chegg Appoints Sarah Bond to Board of Directors

Corporate Vice President of Gaming Ecosystem at Microsoft brings more than ten years of experience building industry shaping technology partnerships and company growth to Chegg’s board

SANTA CLARA, Calif.–(BUSINESS WIRE)–
Chegg, Inc. (NYSE: CHGG), the leading student-first connected learning platform, today announced that Sarah Bond, Corporate Vice President (CVP) of Gaming Ecosystem at Microsoft, has joined Chegg’s Board of Directors, effective today on December 2nd, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201202005866/en/

Sarah Bond, CVP of Gaming Ecosystem at Microsoft (Photo: Business Wire)

Sarah Bond, CVP of Gaming Ecosystem at Microsoft (Photo: Business Wire)

“Considering that she works in one of the fastest-growing, quickest moving industries in the world, Sarah’s ability to think ahead of the game and build innovative partnerships is incredibly impressive,” said Dan Rosensweig, President and CEO of Chegg, Inc. “Sarah’s knowledge of subscription-based services and passion for using technologies to build online communities makes her an excellent addition to our board. We’re very excited to have her experience and appreciation for our student-first mission on our board.”

Bond joined Microsoft as a CVP in 2017 after previously serving as the Senior Vice President of T-Mobile. At T-Mobile, she was an essential member of the team that turned the company around by leading cross-functional strategic initiatives like T-Mobile’s evolutionary “Un-carrier” program. At Microsoft, Bond is integral in scaling Xbox Game Pass, one of the world’s leading games subscription and membership platforms that now has over 15 million subscribers from 41 countries.

“I am delighted to be joining Chegg’s Board of Directors, as it is one of the most forward-looking, subscription-based companies in the education technology industry today,” said Bond. “As people, and institutions, continue to look for more hybrid course models, students will increasingly need online resources and communities that they can feel supported by. I’m excited to integrate my experience with Chegg’s mission to advocate for students’ academic success all across the globe.”

Biography of Sarah Bond:

Sarah Bond is the CVP of Gaming Ecosystem at Microsoft, leading Microsoft’s business with game creators across all Microsoft software and services, including Xbox, Azure, and Microsoft 365. Sarah is currently serving as an Executive Sponsor for Blacks @ Microsoft (BAM), an employee resource group. As the former CVP of Global Gaming Partnerships and Development, Sarah was instrumental to Xbox growth – developing deeper and more strategic partner relationships, building Xbox Game Pass to a position of strength, expanding Xbox Game Studios, securing streaming rights for Project xCloud, and leading high-performing global teams. Sarah holds a BA in Economics from Yale University and an MBA from Harvard Business School.

About Chegg:

Chegg is a smarter way to student. As the leading direct-to-student learning platform, we strive to improve educational outcomes by putting the student first in all our decisions. We support students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. Our services are available online, anytime and anywhere, so we can reach students when they need us most. Chegg is a publicly held company based in Santa Clara, California and trades on the NYSE under the symbol CHGG. For more information, visit www.chegg.com.

MEDIA CONTACT: Heather Hatlo Porter, [email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Software Networks Internet Technology University Primary/Secondary Education Mobile/Wireless

MEDIA:

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Sarah Bond, CVP of Gaming Ecosystem at Microsoft (Photo: Business Wire)
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Guild Holdings Company Reports Third Quarter 2020 Results

Guild Holdings Company Reports Third Quarter 2020 Results

– Delivered Record Originations of $10 Billion, Representing Year-Over-Year Growth of 41% –

– Net Revenue More Than Doubled Year-Over-Year to $564 Million–

– Net Income Increased Year-Over-Year to $182 Million –

– Adjusted Net Income More Than Tripled Year-Over-Year to $195 Million –

Third Quarter 2020 Highlights Year-over-Year

  • Closed record origination volume of $10.0 billion, a 41% increase
  • Purchase originations represented $5.0 billion or 50% of overall loan volume
  • Net revenue more than doubled to $563.5 million compared to $217.8 million
  • Significantly grew net income to $182.1 million from $8.5 million
  • Adjusted net income rose to $195.0 million from $58.6 million
  • Adjusted EBITDA more than tripled to $267.3 million from $77.1 million

Year-To-Date 2020 Highlights

  • Total funded originations of $24.6 billion, up 57% from 2019
  • Net revenue of $1.2 billion, more than doubling from 2019
  • Net income of $292.9 million, up from a loss of $38.5 million in 2019
  • Adjusted net income and Adjusted EBITDA more than tripled from 2019 to $433.3 million and $593.0 million, respectively
  • Return on equity increased to 71.3%, while adjusted return on equity increased to 105.5%

SAN DIEGO–(BUSINESS WIRE)–
Guild Holdings Company (NYSE: GHLD) (“Guild” or the “Company”), a growth-oriented mortgage company that employs a relationship-based loan sourcing strategy to execute on its mission of delivering the promise of home ownership, today announced results for the third quarter ended September 30, 2020.

“We ended the third quarter with record total loan volume and continued growth in servicing. Our origination volume grew over 41% in the quarter from the same period last year, with half of the total coming from purchase originations,” stated Mary Ann McGarry, Chief Executive Officer. “Our ongoing focus on the purchase market produces more durable volume as well as consistent margins, ultimately supporting the continued growth and profitability of our business as we build long-term value for our shareholders.”

Third Quarter Results:

  • Originated 50% of closed loan origination volume from purchase business, compared to the Mortgage Bankers Association average of 43%
  • Grew gain on sale margins on originations by 48% year-over-year to 562 bps
  • Gain on sale margins on pull through adjusted lock volume increased 36% year-over-year to 489 bps
  • Held refinance recapture in excess of 60%

Third Quarter Financial Summary

($ amounts in millions, except per share metrics)

3Q’20

3Q’19

%∆

YTD’20

YTD’19

%∆

Total In-House Originations

$10,046.5

$7,126.4

41%

$24,605.3

$15,669.3

57%

Gain-on-Sale Margin on Originations (bps)

562

379

48%

528

381

39%

Net Revenue

$563.5

$217.8

159%

$1,167.8

$456.9

156%

Total Expenses

$317.2

$211.9

50%

$774.3

$513.4

51%

Net Income

$182.1

$8.5

2043%

$292.9

($38.5)

(861%)

Return on Equity

121.8%

9.0%

1254%

71.3%

-12.5%

(672%)

Adjusted Net Income

$195.0

$58.6

233%

$433.3

$111.3

289%

Adjusted EBITDA

$267.3

$77.1

247%

$593.0

$157.0

278%

Adjusted ROAE

130.5%

62.1%

110%

105.5%

36.1%

193%

Third Quarter Origination Segment Results

Origination segment net income more than tripled year-over-year to $287.9 from $77.7 million primarily driven by record origination volume of $10.0 billion and net revenue more than doubling year-over-year. Gain on sale margins on originations increased 48% year-over-year to 562 bps. Gain on sale margins on pull through adjusted lock volume increased 36% year-over-year to 489 bps. Total pull through adjusted lock volume in the third quarter was $11.5 billion. The segment’s expenses were $279.1 million compared to $194.0 million in the prior year quarter primarily as a result of increased variable sales team compensation and staffing aligned with the significant growth in origination volume.

($ amounts in million)

3Q’20

3Q’19

%∆

YTD’20

YTD’19

%∆

In-House Originations $

$10,046.5

$7,126.4

41%

$24,605.3

$15,669.3

57%

In-House Originations # (000’s)

36

25

38%

88

58

52%

Net revenue

$567.0

$271.7

109%

$1,303.9

$604.0

116%

Total expenses

$279.1

$194.0

44%

$693.1

$472.4

47%

Net income allocated to origination

$287.9

$77.7

271%

$610.9

$131.7

364%

Third Quarter Servicing Segment Results

Net loss attributed to the servicing segment improved by 81% to $11.7 million from a loss of $60.8 million in the prior year. The Company’s servicing portfolio serviced in-house grew 15% year-over-year to $56.4 billion, with loan servicing and other fees growing 10% to $40.2 million. The Company retained servicing rights of 93.6% of total loans sold in the third quarter 2020.

Net revenue improved to a loss of $1.4 million from a loss of $52.0 million. The fair value of the Company’s Mortgage Servicing Rights declined by $41.0 million in the third quarter 2020, compared to $91.0 million in prior year. This is typical as interest rates decrease and prepayments increase. Guild recaptured more than 60% of refinance volumes as new originations, which aligns with Guild’s business model that servicing and origination have a symbiotic relationship. Servicing expenses increased 18% year-over-year, which is partially due to the rise in expenses incurred related to the U.S. Government’s CARES Act implemented in the first half of 2020.

As of September 30, 2020, approximately 4.3% of the loans in Company’s servicing portfolio had elected the forbearance option compared to the industry average of 6.8%, as reported by the Mortgage Bankers Association. As of October 31, 2020, approximately 3.6% of the loans in the Company’s servicing portfolio had elected the forbearance option compared to the mortgage industry’s average of 5.7%.

Servicing

($ amounts in millions)

3Q’20

3Q’19

%∆

YTD’20

YTD’19

%∆

UPB of servicing portfolio

$56,428.9

$48,911.3

15%

$56,428.9

$48,911.3

15%

# Loans serviced (000’s)

260

235

11%

260

235

11%

Loan servicing and other fees

$40.2

$36.5

10%

$116.5

$105.0

11%

Valuation adjustment to MSRs

($41.0)

($91.0)

-55%

($245.8)

($251.2)

-2%

Net revenue

($1.4)

($52.0)

-97%

($129.7)

($141.8)

-9%

Total expenses

$10.3

$8.7

18%

$29.8

$23.1

29%

Net loss allocated to servicing

($11.7)

($60.8)

-81%

($159.5)

($164.8)

-3%

Balance Sheet and Liquidity Highlights

The Company’s operating cash position was $252.3 million. The Company’s untapped loan funding capacity represented $1.1 billion, while the untapped Mortgage Servicing Rights line of credit was $92 million, based on total committed amounts.

($ amounts in million)

September 30,

2020 (Unaudited)

December 31,

2019

Cash and Cash Equivalents

$252.3

$106.7

Mortgage servicing rights, net

$392.2

$418.4

Warehouse lines of credit

$1,912.3

$1,303.2

Notes payable

$208.0

$218.0

Stockholder’s equity

$688.9

$406.0

Webcast and Conference call

The Company will host a webcast and conference call on Wednesday, December 2, 2020 at 5:00 pm ET to discuss the Company’s results for the third quarter ending September 30, 2020.

The conference call will be available on the Company’s website at https://ir.guildmortgage.com/. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register. The conference call can also be accessed by the following dial-in information:

  • 1-877-407-0789 (Domestic)
  • 1-201-689-8562 (International)

Replay

A replay of the call will also be available on the Company’s website approximately two hours after the live call through December 16, 2020. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (international). The replay pin number is 13713638. The replay will also be available on the investors section of the Company’s website at https://ir.guildmortgage.com/.

About Guild Holdings Company

Guild is a growth-oriented mortgage company that employs a relationship-based loan sourcing strategy to execute on its mission of delivering the promise of home ownership in neighborhoods and communities across the United States. Guild was established in 1960 and has expanded its retail origination footprint to 31 states within the United States.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements include, but are not limited to, the following: any changes in macro-economic conditions and in U.S. residential real estate market conditions, including changes in prevailing interest rates or monetary policies and the effects of the ongoing COVID-19 pandemic; any disruptions in the secondary home loan market and their effects on our ability to sell the loans that we originate; any changes in certain U.S. government-sponsored entities and government agencies, including Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”), Government National Mortgage Association (“GNMA”), the Federal Housing Administration (“FHA”), the United States Department of Agriculture Rural Development (“USDA”) and the United States Department of Veteran’s Affairs (“VA”), or their current roles; the effects of any termination of our servicing rights; the effects of our existing and future indebtedness on our liquidity and our ability to operate our business; any failure to maintain and improve the technological infrastructure that supports our origination and servicing platform; any failure to maintain or grow our historical referral relationships with our referral partners; any failure to continue the historical levels of growth in our market share in the mortgage origination and servicing industry; any decline in our ability to recapture loans from borrowers who refinance; our inability to attract, integrate and retain qualified personnel; our failure to identify, develop and integrate acquisitions of other companies or technologies, or any diversion of our management’s attention due to the foregoing; inaccuracies in the estimates of the fair value of the substantial portion of our assets that are measured on that basis (including our mortgage servicing rights, or “MSRs”); the failure of the internal models that we use to manage risk and make business decisions to produce reliable or accurate results; the costs of potential litigation and claims; the degree of business and financial risk associated with certain of our loans; any cybersecurity breaches or other attacks involving our computer systems or those of our third-party service providers; any changes in applicable technology and consumer outreach techniques; our inability to secure additional capital, if needed, to operate and grow our business; the impact of operational risks, including employee or consumer fraud, the obligation to repurchase sold loans in the event of a documentation error, and data processing system failures and errors; any repurchase or indemnification obligations caused by the failure of the loans that we originate to meet certain criteria or characteristics; the seasonality of the mortgage origination industry; any failure to protect our brand and reputation; the risks associated with adverse weather conditions and man-made or natural events; our exposure to additional income tax liabilities and changes in tax laws, or disagreements with the Internal Revenue Service (“IRS”) regarding our tax positions; any failure to adequately protect our intellectual property and the costs of any potential intellectual property disputes; any non-compliance with the complex laws and regulations governing our industry and the related costs associated with maintaining and monitoring compliance; any changes in the laws and regulations governing our industry that would require us to change our business practices, raise compliance costs or other costs of doing business; our control by, and any conflicts of interest with, McCarthy Capital Mortgage Investors, LLC (“MCMI”); the significant influence on our business that members of our board and management team are able to exercise as stockholders; our dependence, as a holding company, upon distributions from Guild Mortgage Co. to meet our obligations; the risks related to our becoming a public company; the risks related to our status as an “emerging growth company” and a “controlled company”; the risks related to our Class A common stock and our dual class common stock structure; and the other risks, uncertainties and factors set forth in our prospectus (filed as part of the Registration Statement on Form S-1 filed by the Company with the Securities and Exchange Commission (Registration No. 333-249225), as amended), including those set forth under “Risk Factors.”

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Condensed Consolidated Statements of Income/(Loss)

($ in thousands)

(Unaudited)
 

 

 

For the three months ended

September 30,

 

 

For the nine months ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan origination fees and gain on sale of loans, net

 

$

565,009

 

 

$

270,093

 

 

$

1,298,302

 

 

$

597,596

 

Loan servicing and other fees

 

 

40,159

 

 

 

36,540

 

 

 

116,469

 

 

 

104,977

 

Valuation adjustment of mortgage servicing rights

 

 

(41,006

)

 

 

(90,968

)

 

 

(245,816

)

 

 

(251,190

)

Interest income

 

 

14,905

 

 

 

18,846

 

 

 

41,854

 

 

 

44,173

 

Interest expense

 

 

(15,488

)

 

 

(16,738

)

 

 

(42,929

)

 

 

(39,871

)

Other (expense) income

 

 

(35

)

 

 

5

 

 

 

(39

)

 

 

1,186

 

Net revenue

 

 

563,544

 

 

 

217,778

 

 

 

1,167,841

 

 

 

456,871

 

Salaries, incentive compensation and benefits

 

 

273,560

 

 

 

176,716

 

 

 

650,458

 

 

 

418,032

 

General and administrative

 

 

27,271

 

 

 

18,497

 

 

 

75,463

 

 

 

47,121

 

Occupancy, equipment and communication

 

 

14,317

 

 

 

13,421

 

 

 

41,272

 

 

 

40,363

 

Depreciation and amortization

 

 

1,540

 

 

 

1,812

 

 

 

4,686

 

 

 

5,636

 

Provision for foreclosure losses

 

 

547

 

 

 

1,497

 

 

 

2,407

 

 

 

2,271

 

Total expenses

 

 

317,235

 

 

 

211,943

 

 

 

774,286

 

 

 

513,423

 

INCOME (LOSS) BEFORE INCOME TAX EXPENSE

(BENEFIT)

 

 

246,309

 

 

 

5,835

 

 

 

393,555

 

 

 

(56,552

)

INCOME TAX EXPENSE (BENEFIT)

 

 

64,223

 

 

 

(2,661

)

 

 

100,688

 

 

 

(18,050

)

NET INCOME (LOSS)

 

$

182,086

 

 

$

8,496

 

 

$

292,867

 

 

$

(38,502

)

 

Condensed Consolidated Balance Sheets

($ in thousands, except share amounts)
 

 

 

September 30,

2020

 

 

December 31,

2019

 

ASSETS

 

(unaudited)

 

 

 

 

 

Cash and cash equivalents

 

$

247,293

 

 

$

101,735

 

Restricted cash

 

 

5,010

 

 

 

5,000

 

Mortgage loans held for sale

 

 

2,239,150

 

 

 

1,504,842

 

Ginnie Mae loans subject to repurchase right

 

 

1,175,589

 

 

 

404,344

 

Accounts and interest receivable

 

 

29,907

 

 

 

34,611

 

Derivative asset

 

 

186,016

 

 

 

19,922

 

Mortgage servicing rights, net

 

 

392,191

 

 

 

418,402

 

Goodwill

 

 

62,834

 

 

 

62,834

 

Other assets

 

 

59,153

 

 

 

55,723

 

TOTAL ASSETS

 

$

4,397,143

 

 

$

2,607,413

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Warehouse lines of credit

 

$

1,912,261

 

 

$

1,303,187

 

Notes payable

 

 

208,000

 

 

 

218,000

 

Ginnie Mae loans subject to repurchase right

 

 

1,176,768

 

 

 

412,490

 

Accounts payable and accrued expenses

 

 

72,226

 

 

 

35,338

 

Accrued compensation and benefits

 

 

85,761

 

 

 

45,297

 

Investor reserves

 

 

19,241

 

 

 

16,521

 

Income tax payable

 

 

13,907

 

 

 

—

 

Due to parent company

 

 

427

 

 

 

12,427

 

Contingent liabilities due to acquisitions

 

 

22,090

 

 

 

8,073

 

Derivative liability

 

 

10,790

 

 

 

4,863

 

Note due to related party

 

 

5,136

 

 

 

6,606

 

Deferred compensation plan

 

 

75,329

 

 

 

52,302

 

Deferred tax liability

 

 

106,309

 

 

 

86,278

 

Total liabilities

 

 

3,708,245

 

 

 

2,201,382

 

Commitments and contingencies (Note 11)

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Common stock, $100 par value; 2,000 shares authorized; 928 issued and outstanding at September 30, 2020 and December 31, 2019

 

 

93

 

 

 

93

 

Additional paid-in capital

 

 

21,992

 

 

 

21,992

 

Retained earnings

 

 

666,813

 

 

 

383,946

 

Total stockholders’ equity

 

 

688,898

 

 

 

406,031

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

4,397,143

 

 

$

2,607,413

 

Key Performance Indicators

Management reviews several key performance indicators to evaluate our business results, measure our performance and identify trends to inform our business decisions. Summary data for these key performance indicators is listed below. Please refer to the “—Components of Results of Operations” for additional metrics that management reviews in conjunction with the consolidated financial statements.

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

($ and units in thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Origination Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ Total in-house origination(1)

 

$

10,046,461

 

 

$

7,126,420

 

 

 

24,605,336

 

 

$

15,669,257

 

# Total in-house origination

 

 

36

 

 

 

25

 

 

 

88

 

 

 

58

 

$ Retail in-house origination

 

 

9,790,466

 

 

 

6,884,200

 

 

 

23,977,194

 

 

 

15,149,274

 

# Retail in-house origination

 

 

35

 

 

 

25

 

 

 

85

 

 

 

56

 

$ Retail brokered origination(2)

 

 

13,865

 

 

 

34,934

 

 

 

56,288

 

 

 

104,897

 

Total origination

 

 

10,060,326

 

 

 

7,161,354

 

 

 

24,661,624

 

 

 

15,774,154

 

Gain-on-sale margin (bps)(3)

 

 

562

 

 

 

379

 

 

 

528

 

 

 

381

 

Pull-through adjusted lock volume(3)

 

 

11,549,458

 

 

 

7,493,415

 

 

 

29,762,766

 

 

 

17,598,809

 

Refinance recapture rate(4)

 

 

64

%

 

 

72

%

 

 

66

%

 

 

65

%

Purchase origination %

 

 

50

%

 

 

57

%

 

 

47

%

 

 

69

%

Servicing Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UPB (period end)(5)

 

$

56,428,908

 

 

$

48,911,308

 

 

$

56,428,908

 

 

$

48,911,308

 

(1)

 

Includes retail and correspondent loans and excludes brokered loans.

(2)

 

Brokered loans are defined as loans we originate in the retail channel that are processed by us, but underwritten and closed by another lender. These loans are typically for products we choose not to offer in house.

(3)

 

Represents the components of loan origination fees and gain on sale of loans, net divided by total in-house origination to derive basis points. Our gain-on-sale margin based on pull-through adjusted lock volume was 489 basis points and 360 basis points for the three months ended September 30, 2020 and September 30, 2019, respectively, and 436 basis points and 340 basis points for the nine months ended September 30, 2020 and September 30, 2019, respectively. Gain-on-sale margin based on pull-through adjusted lock volume represents the components of loan origination fees and gain on sales of loans, divided by pull-through adjusted lock volume. Pull-through adjusted lock volume is equal to total locked volume multiplied by pull-through rates of 88.14% and 89.65% as of September 30, 2020 and September 30, 2019, respectively. We estimate the pull-through rate based on changes in pricing and actual borrower behavior using a historical analysis of loan closing data and “fallout” data with respect to the number of commitments that have historically remained unexercised.

(4)

 

Recapture rate is calculated as the total UPB of our clients that originated a new mortgage with us to refinance an existing mortgage in a given period, divided by the total UPB of our clients that paid off their existing mortgage and originated a new mortgage in the same period.

(5)

 

Excludes subserviced portfolio of $1.0 billion and $1.4 billion as of September 30, 2020 and September 30, 2019, respectively.

 

GAAP to non-GAAP Reconciliations

Reconciliation of Net Income (Loss) to Adjusted Net Income

($ in millions)
 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income (loss)

 

$

182.1

 

 

$

8.5

 

 

$

292.9

 

 

$

(38.5

)

Add adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of MSRs due to model inputs and assumption

 

 

9.5

 

 

 

63.1

 

 

 

160.5

 

 

 

193.8

 

Change in fair value of contingent liabilities due to acquisitions

 

 

7.9

 

 

 

4.2

 

 

 

27.9

 

 

 

7.3

 

Tax impact of adjustments(1)

 

 

(4.4

)

 

 

(17.2

)

 

 

(48.1

)

 

 

(51.3

)

Adjusted Net Income

 

$

195.0

 

 

$

58.6

 

 

$

433.3

 

 

$

111.3

 

(1)

 

Tax rate used 25.5%

 

Reconciliation of Net Income (Loss) to Adjusted EBITDA

($ in millions)
 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income (loss)

 

$

182.1

 

 

$

8.5

 

 

$

292.9

 

 

$

(38.5

)

Add adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on non-funding debt

 

 

2.1

 

 

 

2.2

 

 

 

6.4

 

 

 

6.8

 

Income tax expense (benefit)

 

 

64.2

 

 

 

(2.7

)

 

 

100.7

 

 

 

(18.1

)

Depreciation and amortization

 

 

1.5

 

 

 

1.8

 

 

 

4.7

 

 

 

5.6

 

Change in fair value of MSRs due to model inputs and assumptions

 

 

9.5

 

 

 

63.1

 

 

 

160.5

 

 

 

193.8

 

Change in fair value of contingent liabilities due to acquisitions

 

 

7.9

 

 

 

4.2

 

 

 

27.9

 

 

 

7.3

 

Adjusted EBITDA

 

$

267.3

 

 

$

77.1

 

 

$

593.0

 

 

$

157.0

 

 

Reconciliation of Return of Equity to Adjusted Return on Equity ($ in millions)
 

Adjusted Return on Equity Calculation

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Numerator: Adjusted Net Income

 

$

195.0

 

 

$

58.6

 

 

$

433.3

 

 

$

111.3

 

Denominator: Average stockholder’s equity

 

 

597.9

 

 

 

377.7

 

 

 

547.5

 

 

 

411.4

 

Adjusted Return on Equity

 

 

130.5

%

 

 

62.1

%

 

 

105.5

%

 

 

36.1

%

Return on Equity

 

 

121.8

%

 

 

9.0

%

 

 

71.3

%

 

 

(12.5

%)

Non-GAAP Financial Measures

We disclose certain financial measures for our consolidated and operating segment results on both a GAAP and a non-GAAP (adjusted) basis. The non-GAAP financial measures disclosed should be viewed in addition to, and not as an alternative to, results prepared in accordance with GAAP. Our use of each of the following non-GAAP financial measures may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures, or reconcile them to the comparable GAAP financial measures, in the same way.

Adjusted Net Income. We define Adjusted Net Income as earnings before the change in the fair value measurements related to our MSRs and contingent liabilities related to completed acquisitions due to changes in valuation assumptions. The fair value of our MSRs is estimated based on a projection of expected future cash flows and the fair value of our contingent liabilities related to completed acquisitions is estimated based on a projection of expected future earn-out payments. Adjusted Net Income is also adjusted by applying an implied tax effect to these adjustments. The Company excludes the change in the fair value of its MSRs due to changes in model inputs and assumptions from Adjusted Net Income and Adjusted EBITDA because the Company believes this non-cash, non-realized adjustment to net revenue is not indicative of the Company’s operating performance or results of operation but rather reflects changes in model inputs and assumptions (e.g., discount rates and prepayment speed assumptions) that impact the carrying value of the Company’s MSRs from period to period.

Adjusted EBITDA. We define Adjusted EBITDA as earnings before interest (without adjustment for net warehouse interest related to loan fundings and payoff interest related to loan prepayments), taxes, depreciation and amortization exclusive of any change in the fair value measurements of the MSRs due to valuation assumptions and contingent liabilities from business acquisitions. The Company excludes the change in the fair value of its MSRs due to changes in model inputs and assumptions from Adjusted Net Income and Adjusted EBITDA because the Company believes this non-cash, non-realized adjustment to net revenue is not indicative of the Company’s operating performance or results of operation but rather reflects changes in model inputs and assumptions (e.g., discount rates and prepayment speed assumptions) that impact the carrying value of the Company’s MSRs from period to period.

Adjusted Return on Equity. We define Adjusted Return on Equity as Adjusted Net Income as a percentage of average beginning and ending stockholder’s equity during the period. For periods of less than one year, Adjusted Return on Equity is shown on an annualized basis.

We use these non-GAAP financial measures to evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. These non-GAAP financial measures are designed to evaluate operating results exclusive of fair value adjustments that are not indicative of management’s operating performance. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects.

Our non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP for Adjusted Net Income and Adjusted EBITDA, and return on equity, which is the most directly comparable financial measure calculated and presented in accordance with GAAP for Adjusted Return on Equity. These limitations include that these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.

Investors:

[email protected]

858-956-5130

Media:

Ryan Hall

Nuffer, Smith, Tucker

[email protected]

Cell: 949-280-4704

619-296-0605

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Finance Banking Professional Services Residential Building & Real Estate Construction & Property

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