- Q1 SaaS Revenue Increases 31% to $45.2 Million
- Increases Full Year SaaS Revenue Guidance to $191 to $197 Million, 26 to 30% growth rate
- SaaS Deferred Revenue Grew 36% Year over Year to $101.5 Million
DUBLIN, Calif., May 04, 2017 (GLOBE NEWSWIRE) -- Callidus Software Inc. (NASDAQ:CALD), a global leader in cloud-based sales, marketing, learning and customer experience solutions, today announced financial results for the quarter ended March 31, 2017.
“Q1 was a great start to 2017 building on the momentum of a record-breaking 2016. We posted another quarter of over 30% SaaS revenue growth and are on target to meet our full-year goals,” said Leslie Stretch, president and CEO, CallidusCloud. “In the quarter we were recognized as a leader in the Gartner Inc. 2017 Magic Quadrant for Sales Performance Management, the Forrester Wave™ for Configure-Price-Quote Solutions, G2 Crowd’s Best Software for HR Teams, Gartner’s FrontRunners Quadrant for Learning Management and we were named a “Great Workplace” by Independent Analysts at Great Place to Work.”
Financial Highlights for the First Quarter 2017
SaaS revenue was $45.2 million, an increase of 31% over the same quarter in the prior year. Maintenance revenue was $1.0 million, resulting in total recurring revenue of $46.2 million. SaaS revenue growth continues to benefit from success in our Lead to Money suite. Professional services revenue was $11.9 million. Total revenue was $58.1 million for the first quarter, an increase of 20%. SaaS billings growth rate was 27% and normalized billings growth was 25% over last year. Cash and short-term investments were $183.2 million. Cash flow from operations for the quarter was $5.7 million, compared to cash flow from operations of $6.1 million in the same quarter of the prior year.
GAAP Performance
- Recurring revenue gross margin was 72%, compared to 74% for the same quarter in the prior year.
- Overall gross margin was 61%, compared to 62% for the same quarter in the prior year.
- Operating loss was $6.8 million compared to $4.6 million for the same quarter in the prior year.
- Pre-tax loss was $6.7 million, compared to $4.4 million for the same quarter in the prior year.
Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.
- Recurring revenue gross margin was 75%, compared to 77% in the prior year.
- Overall gross margin was 64%, compared to 66% in the prior year.
- Operating income was $4.1 million, compared to $3.3 million for the same quarter in the prior year.
- Pre-tax income was $4.1 million, compared to $3.5 million for the same quarter in the prior year.
Business Highlights for the First Quarter 2017
- CallidusCloud was positioned as a Leader in Gartner’s 2017 Magic Quadrant for Sales Performance Management. CallidusCloud was positioned highest for ability to execute and furthest for completeness of vision. This was the fourth consecutive report where CallidusCloud was in the Leaders quadrant.
- Independent research firm cited CallidusCloud as a Leader in its report, The Forrester Wave™: Configure-Price-Quote Solutions, Q1 2017. CallidusCloud was one of only three leaders in this comprehensive view of the market.
- CallidusCloud’s Litmos was named a leader in G2 Crowd’s Best Software for HR Teams 2017 list. Litmos was rated top Learning Management System in both Enterprise and Mid-Market categories. G2 Crowd is a leading business solutions review platform.
- CallidusCloud unveiled the latest groundbreaking release of Thunderbridge analytics and data exploration platform. Built on state-of-the-art Hadoop, In-Memory and Big-Data visualization technology, Thunderbridge unlocks the power of Commissions data enabling customers to answer critical sales performance questions and uncover potentially millions of dollars of lost opportunity.
- Salesforce and CallidusCloud expanded their partnership with a multi-year strategic agreement. This exclusive new program will see CallidusCloud featured in Salesforce’s financial services vertical blueprint, as well as collaboration between Salesforce and CallidusCloud on industry initiatives in media, communications and manufacturing, and the pursuit of new joint go-to-market activities. Customers will benefit from this extended partnership, combining Salesforce’s #1 CRM with CallidusCloud’s leading Sales Performance Management capabilities.
Financial Outlook for 2017 – Second Quarter and Full Year
For the second quarter of 2017, CallidusCloud expects SaaS revenue to be between $46.3 million and $46.9 million. Maintenance revenue is expected to be between $700 thousand and $900 thousand. Total revenue is expected to be between $58.4 million and $59.4 million. GAAP operating loss is expected to be between $6.4 million and $6.9 million, with GAAP pre-tax loss between $6.6 million and $7.1 million. Non-GAAP operating income is expected to be between $4.0 million and $5.0 million, with non-GAAP pre-tax income between $3.8 million and $4.8 million.
For the full year of 2017, CallidusCloud is updating its previous SaaS revenue guidance to be between $191.0 million and $197.0 million. Maintenance revenue is expected to be between $2.8 million and $3.3 million. CallidusCloud is updating its previous total revenue guidance to be between $241.0 million and $246.5 million. GAAP operating loss is expected to be between $21.5 million and $23.0 million, with GAAP pre-tax loss between $22.0 million and $24.0 million. Non-GAAP operating income is expected to be between $21.0 million and $23.5 million, with non-GAAP pre-tax income between $20.5 million and $22.5 million.
Conference Call
In conjunction with this announcement CallidusCloud will host a conference call at 1:30 p.m. Pacific Time (PT) today to discuss the first quarter and outlook for the second quarter 2017 and the full year 2017. The conference call will be available via live webcast at the Investor Relations section of CallidusCloud’s website.
Webcast site: http://www.calliduscloud.com/about-us/investor-relations
Dial-in: 866-324-2828 (International callers: 678-509-7525)
Passcode: 4841883
Replay information: A webcast replay will be available on the Investor Relations section of our website under Calendar of Events.
For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/
About CallidusCloud
Callidus Software Inc. (NASDAQ:CALD), doing business as CallidusCloud®, is the global leader in cloud-based sales, marketing, learning and customer experience solutions. CallidusCloud enables organizations to accelerate and maximize their Lead to Money process with a complete suite of solutions that identify the right leads, ensure proper territory and quota distribution, enable sales forces, automate configure price quote, and streamline sales compensation – driving bigger deals, faster. Approximately 5,400 leading organizations, across all industries, rely on CallidusCloud to optimize the Lead to Money process to close more deals for more money in record time.
For more information, please visit www.calliduscloud.com.
Non-GAAP Financial Measures
In this release, CallidusCloud has provided additional financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP net income before provision for income taxes. CallidusCloud uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors as a supplement to GAAP measures in evaluating CallidusCloud’s operating performance. CallidusCloud believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in CallidusCloud’s industry, many of which present non-GAAP financial measures that may resemble our non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Our non-GAAP measures reflect adjustments based on the following items:
Stock-based compensation expense: We have excluded the effect of stock-based compensation expense from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, and net income before provision for income taxes. We believe the exclusion of stock-based compensation expense provides a useful comparison of our operating results to our peers.
Restructuring and other expense: We have excluded the effect of restructuring and other expense from our non-GAAP operating expenses, operating income and net income before provision for income taxes. Restructuring and other expense consists of employee severance and facility exit costs. We feel it is useful to investors to understand the effects of these items on our financial results.
Patent litigation and settlement costs: We have excluded patent litigation and settlement costs from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, and net income before provision for income taxes. We believe patent litigation and settlement costs are not indicative of our ongoing business operations, and are inconsistent in amount and frequency; as such we exclude these costs during our evaluation of our business performance.
Amortization of acquired intangible assets: We have excluded the effect of amortization of acquired intangibles which include developed technology, customer relationships, trade names, domain names, patents and licenses, and order backlog from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, other income and expense, and net income before provision for income taxes. Amortization of acquired intangibles are significantly affected by timing, and as such, can be inconsistent in amount and nature.
Acquisition-related costs: We have excluded the costs related to acquisitions from our non-GAAP operating expenses, operating income, net income and net income before provision for income taxes. These costs include legal and transactional costs associated with acquisition activities as well as expense related to earnouts that we would not have otherwise incurred in the periods presented as part of our continuing operations. We believe the exclusion of acquisition-related costs provides a useful comparison of our operating results to our peers.
Cash taxes: Cash taxes are defined as GAAP current income tax expense excluding non-cash items.
Additionally, CallidusCloud believes the following supplemental non-GAAP financial information is useful to investors and others in assessing its operating performance. A calculation of the supplemental non-GAAP financial information is provided in the table titled “Non-GAAP Supplemental Financial Information.”
- SaaS billings is calculated as SaaS revenue plus the change in SaaS deferred revenue in a period.
- Normalized SaaS billings is calculated as SaaS revenue plus the change in SaaS deferred revenue, reduced for the remaining deferred revenue acquired during the period, plus or minus the effect of multiple year SaaS billings in that period.
We believe that normalized SaaS billings provide valuable insight into the sales of our solutions and the performance of our business. We do not consider normalized SaaS billings as a substitute for revenue recognition or revenue measurement.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including for example discussion of our commercial prospects, partnerships, estimates of future revenues, operating income/loss and expenses, stock-based compensation expenses, amortization of acquired intangible assets, acquisition-related costs, restructuring and other expenses, and patent litigation and settlement costs and estimates reflect management’s best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in periodic reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K which may be obtained by contacting CallidusCloud’s Investor Relations department at 415-445-3232, or from the Investor Relations section of CallidusCloud’s website (http://www.calliduscloud.com/about-us/investor-relations/). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research including any warranties of merchantability or fitness for a particular purpose.
Gartner, Magic Quadrant for Sales Performance Management, 28 March 2017.
© 2017 Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, Badgeville, BridgeFront, Clicktools, Datahug, iCentera, Lead to Money, LeadFormix, LeadRocket, Learnpass, Litmos, the Litmos logo, Producer Pro, SalesGenius, Surve, Syncfrog, Thunderbridge, and ViewCentral are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
| CALLIDUS SOFTWARE INC. | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (In thousands, except per share data) | |||||||
| (unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2017 | 2016 | ||||||
| Revenue: | |||||||
| Recurring | $ | 46,197 | $ | 37,606 | |||
| Services and license | 11,944 | 10,772 | |||||
| Total revenue | 58,141 | 48,378 | |||||
| Cost of revenue: | |||||||
| Recurring | 13,022 | 9,962 | |||||
| Services and license | 9,940 | 8,261 | |||||
| Total cost of revenue | 22,962 | 18,223 | |||||
| Gross profit | 35,179 | 30,155 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 22,691 | 18,903 | |||||
| Research and development | 9,301 | 7,242 | |||||
| General and administrative | 9,366 | 8,255 | |||||
| Restructuring and other | 597 | 316 | |||||
| Total operating expenses | 41,955 | 34,716 | |||||
| Operating loss | (6,776 | ) | (4,561 | ) | |||
| Interest income and other income (expense), net | 65 | 225 | |||||
| Interest expense | (19 | ) | (43 | ) | |||
| Loss before provision for income taxes | (6,730 | ) | (4,379 | ) | |||
| Provision for income taxes | 168 | 156 | |||||
| Net loss | $ | (6,898 | ) | $ | (4,535 | ) | |
| Net loss per share | |||||||
| Basic and Diluted | $ | (0.11 | ) | $ | (0.08 | ) | |
| Weighted average shares used in computing net loss per share: | |||||||
| Basic and Diluted | 64,368 | 56,690 | |||||
| CALLIDUS SOFTWARE INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 143,099 | $ | 148,008 | ||||
| Short-term investments | 40,133 | 39,266 | ||||||
| Accounts receivable, net | 52,029 | 55,464 | ||||||
| Prepaid and other current assets | 20,182 | 18,275 | ||||||
| Total current assets | 255,443 | 261,013 | ||||||
| Property and equipment, net | 42,087 | 35,456 | ||||||
| Goodwill | 64,111 | 63,957 | ||||||
| Intangible assets, net | 19,312 | 21,659 | ||||||
| Deposits and noncurrent assets | 4,420 | 4,416 | ||||||
| Total assets | $ | 385,373 | $ | 386,501 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,078 | $ | 3,573 | ||||
| Accrued payroll and related expenses | 13,262 | 17,831 | ||||||
| Accrued expenses | 20,859 | 15,126 | ||||||
| Deferred revenue | 102,926 | 99,758 | ||||||
| Total current liabilities | 143,125 | 136,288 | ||||||
| Deferred revenue, noncurrent | 1,860 | 3,209 | ||||||
| Deferred income taxes, noncurrent | 1,575 | 1,541 | ||||||
| Other noncurrent liabilities | 8,043 | 8,602 | ||||||
| Total liabilities | 154,603 | 149,640 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 65 | 64 | ||||||
| Additional paid-in capital | 559,411 | 559,200 | ||||||
| Treasury stock | (14,430 | ) | (14,430 | ) | ||||
| Accumulated other comprehensive loss | (4,546 | ) | (5,141 | ) | ||||
| Accumulated deficit | (309,730 | ) | (302,832 | ) | ||||
| Total stockholders’ equity | 230,770 | 236,861 | ||||||
| Total liabilities and stockholders’ equity | $ | 385,373 | $ | 386,501 | ||||
| CALLIDUS SOFTWARE INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (6,898 | ) | $ | (4,535 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation expense | 2,641 | 1,688 | ||||||
| Amortization of intangible assets | 1,899 | 1,360 | ||||||
| Provision for doubtful accounts | 205 | 529 | ||||||
| Stock-based compensation | 8,250 | 6,453 | ||||||
| Deferred income taxes | 1 | 71 | ||||||
| Loss on foreign currency from marked-to-market derivative | 1 | 78 | ||||||
| Excess tax benefits from stock-based compensation | - | (21 | ) | |||||
| Loss on disposal of property and equipment | 3 | - | ||||||
| Net amortization on investments | 65 | (45 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 3,231 | 195 | ||||||
| Prepaid and other current assets | (2,401 | ) | 437 | |||||
| Other noncurrent assets | 29 | (3 | ) | |||||
| Accounts payable | 2,423 | (558 | ) | |||||
| Accrued expenses and other liabilities | (774 | ) | 1,073 | |||||
| Accrued payroll and related expenses | (4,577 | ) | (3,188 | ) | ||||
| Accrued restructuring and other expenses | (210 | ) | (266 | ) | ||||
| Deferred revenue | 1,819 | 2,844 | ||||||
| Net cash provided by operating activities | 5,707 | 6,112 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of investments | (2,823 | ) | (3,700 | ) | ||||
| Proceeds from maturities and sale of investments | 2,852 | 3,600 | ||||||
| Purchases of property and equipment (net) | (2,312 | ) | (1,521 | ) | ||||
| Purchases of intangible assets | - | (267 | ) | |||||
| Acquisitions, net of cash acquired | (495 | ) | - | |||||
| Net cash used in investing activities | (2,778 | ) | (1,888 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock | 2,574 | 1,467 | ||||||
| Restricted stock units acquired to settle employee withholding liability | (10,613 | ) | (1,085 | ) | ||||
| Excess tax benefits from stock-based compensation | - | 21 | ||||||
| Payment of consideration related to acquisitions | (100 | ) | (104 | ) | ||||
| Net cash (used in) provided by financing activities | (8,139 | ) | 299 | |||||
| Effect of foreign currency exchange rates on cash and cash equivalents | 301 | 75 | ||||||
| Net (decrease) increase in cash and cash equivalents | (4,909 | ) | 4,598 | |||||
| Cash and cash equivalents at beginning of period | 148,008 | 77,232 | ||||||
| Cash and cash equivalents at end of period | $ | 143,099 | $ | 81,830 | ||||
| CALLIDUS SOFTWARE INC. | |||||||
| GAAP TO NON-GAAP ADJUSTMENT SUMMARY | |||||||
| (In thousands) | |||||||
| (unaudited) | |||||||
| GAAP to Non-GAAP adjustments include stock-based compensation, amortization of acquired intangible assets, patent litigation and settlement costs, acquisition-related costs, restructuring and other expenses as follows: | |||||||
| Three Months Ended March 31, | |||||||
| 2017 | 2016 | ||||||
| Cost of revenues: | |||||||
| Recurring | $ | 1,622 | $ | 1,163 | |||
| Services and license | 632 | 512 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 3,002 | 2,450 | |||||
| Research and development | 1,663 | 1,170 | |||||
| General and administrative | 3,322 | 2,230 | |||||
| Restructuring and other | 597 | 316 | |||||
| Total | $ | 10,838 | $ | 7,841 | |||
| CALLIDUS SOFTWARE INC. | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||
| (unaudited) | |||||||
| (In thousands, except for percentages) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2017 | 2016 | ||||||
| Non-GAAP gross profit reconciliation | |||||||
| Gross profit | $ | 35,179 | $ | 30,155 | |||
| Gross margin | 61 | % | 62 | % | |||
| Add back: | |||||||
| Stock-based compensation | 1,055 | 1,021 | |||||
| Non-cash amortization of acquired | |||||||
| intangible assets | 1,199 | 654 | |||||
| Non-GAAP gross profit | $ | 37,433 | $ | 31,830 | |||
| Gross margin | 64 | % | 66 | % | |||
| Non-GAAP recurring revenue gross profit reconciliation | |||||||
| Recurring revenue gross profit | $ | 33,175 | $ | 27,644 | |||
| Recurring revenue gross margin | 72 | % | 74 | % | |||
| Add back: | |||||||
| Stock-based compensation | 423 | 509 | |||||
| Non-cash amortization of acquired | |||||||
| intangible assets | 1,199 | 654 | |||||
| Non-GAAP recurring revenue gross profit | $ | 34,797 | $ | 28,807 | |||
| Recurring revenue gross margin | 75 | % | 77 | % | |||
| Non-GAAP operating expense reconciliation: | |||||||
| Operating expenses | $ | 41,955 | $ | 34,716 | |||
| Operating expenses, as a % of total | |||||||
| revenues | 72 | % | 72 | % | |||
| Subtract: | |||||||
| Stock-based compensation | (7,409 | ) | (5,431 | ) | |||
| Non-cash amortization of acquired | |||||||
| intangible assets | (471 | ) | (378 | ) | |||
| Patent litigation and settlement costs | (28 | ) | (28 | ) | |||
| Acquisition costs | (79 | ) | (13 | ) | |||
| Restructuring | (597 | ) | (316 | ) | |||
| Non-GAAP operating expenses | $ | 33,371 | $ | 28,550 | |||
| Non-GAAP operating expenses, as a % | |||||||
| of total revenues | 57 | % | 59 | % | |||
| CALLIDUS SOFTWARE INC. | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||
| (unaudited) | |||||||
| (In thousands, except for percentages) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2017 | 2016 | ||||||
| Non-GAAP operating income (loss) reconciliation: | |||||||
| Operating loss | $ | (6,776 | ) | $ | (4,561 | ) | |
| Operating loss, as a % of total | |||||||
| revenues | (12 | )% | (9 | )% | |||
| Add back: | |||||||
| Stock-based compensation | 8,465 | 6,453 | |||||
| Non-cash amortization of acquired | |||||||
| intangible assets | 1,669 | 1,031 | |||||
| Patent litigation and settlement costs | 28 | 28 | |||||
| Acquisition costs | 79 | 13 | |||||
| Restructuring | 597 | 316 | |||||
| Non-GAAP operating income | $ | 4,062 | $ | 3,280 | |||
| Non-GAAP operating income, as a % | |||||||
| of total revenues | 7 | % | 7 | % | |||
| Non-GAAP net income (loss) before provision for income tax reconciliation: | |||||||
| Net loss before provision for income taxes | $ | (6,730 | ) | $ | (4,379 | ) | |
| Net loss before provision for income taxes, as a % of total | |||||||
| revenues | (12 | )% | (9 | )% | |||
| Add back: | |||||||
| Stock-based compensation | 8,465 | 6,453 | |||||
| Non-cash amortization of acquired | |||||||
| intangible assets | 1,669 | 1,031 | |||||
| Patent litigation and settlement costs | 28 | 28 | |||||
| Acquisition costs | 79 | 13 | |||||
| Restructuring | 597 | 316 | |||||
| Non-GAAP net income before provision for income taxes | $ | 4,108 | $ | 3,462 | |||
| Non-GAAP net income before provision | |||||||
| for income taxes, as a % of total revenues | 7 | % | 7 | % | |||
| Cash taxes | $ | 163 | $ | 74 | |||
| Weighted average shares - basic | 64,368 | 56,690 | |||||
| Weighted average shares - diluted | 66,313 | 58,091 | |||||
| CALLIDUS SOFTWARE INC. | |||||||||||
| Non-GAAP Supplemental Financial Information | |||||||||||
| (unaudited) | |||||||||||
| (In thousands, except for percentages) | |||||||||||
| Three Months Ended | Trailing Twelve Months Ended | ||||||||||
| March 31, | March 31, | ||||||||||
| SaaS Billings | 2017 | 2016 | 2017 | 2016 | |||||||
| SaaS revenue | $ | 45,155 | $ | 34,504 | $ | 162,175 | $ | 125,085 | |||
| Add back: | |||||||||||
| Increase in SaaS deferred revenue | 2,421 | 2,960 | 27,088 | 12,244 | |||||||
| SaaS billings | $ | 47,576 | $ | 37,464 | $ | 189,263 | $ | 137,329 | |||
| SaaS billings growth rate | 27 | % | 38 | % | |||||||
| Normalized Billings | |||||||||||
| SaaS billings | $ | 47,576 | $ | 37,464 | $ | 189,264 | $ | 137,329 | |||
| Multi-year billings | 907 | 1,381 | 1,224 | 4,803 | |||||||
| Remaining deferred revenue from 2016 acquisitions | - | - | (748 | ) | - | ||||||
| Normalized SaaS billings | $ | 48,483 | $ | 38,845 | $ | 189,740 | $ | 142,132 | |||
| Normalized SaaS billings growth rate | 25 | % | 33 | % | |||||||
CALLIDUS SOFTWARE INC.
FINANCIAL OUTLOOK
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the Company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the Company assumes no obligation to update.
| REVENUE GUIDANCE | ||||||||||||||
| (In thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||
| June 30, 2017 | December 31, 2017 | |||||||||||||
| SaaS revenue | $46,300 - $46,900 | $191,000 - $197,000 | ||||||||||||
| Maintenance revenue | $700 - $900 | $2,800 - $3,300 | ||||||||||||
| Total revenue | $58,400- $59,400 | $241,000 - $246,500 | ||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FORWARD LOOKING GUIDANCE MEASURES | ||||||||||||||
| (In thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||
| June 30, 2017 | December 31, 2017 | |||||||||||||
| From | To | From | To | |||||||||||
| Non-GAAP operating income reconciliation: | ||||||||||||||
| GAAP operating loss | $ | (6,400 | ) | $ | (6,900 | ) | $ | (21,500 | ) | $ | (23,000 | ) | ||
| Add back: | ||||||||||||||
| Stock-based compensation | 8,500 | 9,300 | 34,500 | 36,000 | ||||||||||
| Non-cash amortization of acquired | ||||||||||||||
| intangible assets | 1,700 | 2,100 | 7,000 | 8,800 | ||||||||||
| Acquisition, patent litigation, restructuring and other | 200 | 500 | 1,000 | 1,700 | ||||||||||
| Non-GAAP operating income | $ | 4,000 | $ | 5,000 | $ | 21,000 | $ | 23,500 | ||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||
| June 30, 2017 | December 31, 2017 | |||||||||||||
| From | To | From | To | |||||||||||
| Non-GAAP pre-tax income reconciliation: | ||||||||||||||
| GAAP (loss) before income taxes | $ | (6,600 | ) | $ | (7,100 | ) | $ | (22,000 | ) | $ | (24,000 | ) | ||
| Add back: | ||||||||||||||
| Stock-based compensation | 8,500 | 9,300 | 34,500 | 36,000 | ||||||||||
| Non-cash amortization of acquired | ||||||||||||||
| intangible assets | 1,700 | 2,100 | 7,000 | 8,800 | ||||||||||
| Acquisition, patent litigation, restructuring and other | 200 | 500 | 1,000 | 1,700 | ||||||||||
| Non-GAAP pre-tax income | $ | 3,800 | $ | 4,800 | $ | 20,500 | $ | 22,500 | ||||||
| Cash taxes | 200 | 300 | 1,000 | 1,400 | ||||||||||
| Weighted average basic shares outstanding | 65,000 | 65,500 | 64,500 | 65,500 | ||||||||||
| Weighted average diluted shares outstanding | 67,000 | 67,500 | 67,000 | 68,000 | ||||||||||