- Q2 2018 Total Revenue of $86.0 million, up 25% year-over-year
- Q2 2018 Recurring Revenue of $83.1 million, up 26% year-over-year
ARLINGTON HEIGHTS, Ill., Feb. 08, 2018 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq:PCTY), a cloud-based provider of payroll and human capital management software solutions, announced today financial results for the second quarter of fiscal year 2018, which ended Dec. 31, 2017.
“I was pleased with the 25 percent total revenue growth we saw in the second quarter, while also continuing to drive scale throughout our business model,” said Steve Beauchamp, Chief Executive Officer of Paylocity. “We continue to focus on investments in both our product and our people, highlighted this quarter by the launch of our Compensation and Survey modules and the recognition received by Glassdoor as one of the Best Places to Work in 2018.”
Second Quarter Fiscal 2018 Financial Highlights
Revenue
- Total revenue was $86.0 million, an increase of 25% from the second quarter of fiscal year 2017.
- Total recurring revenue was $83.1 million, representing 97% of total revenue and an increase of 26% from the second quarter of fiscal year 2017.
Operating Income (Loss)
- GAAP operating income was $0.1 million, compared to an operating loss of ($1.6) million in the second quarter of fiscal year 2017.
- Non-GAAP operating income was $8.7 million, compared to non-GAAP operating income of $5.4 million in the second quarter of fiscal year 2017.
Net Income (Loss)
- GAAP net income was $0.4 million. This compares to a net loss of ($1.7) million for the second quarter of fiscal year 2017. Net income per share was $0.01 for the second quarter of fiscal year 2018 based on 54.8 million diluted weighted average common shares outstanding. Net loss per share was ($0.03) for the second quarter of fiscal year 2017, based on 51.4 million basic and diluted weighted average common shares outstanding.
- Non-GAAP net income was $9.0 million. This compares to non-GAAP net income of $5.4 million for the second quarter of fiscal year 2017. Non-GAAP net income per share was $0.16 for the second quarter of fiscal year 2018, based on 54.8 million diluted weighted average common shares outstanding. Non-GAAP net income per share was $0.10 for the second quarter of fiscal year 2017, based on 53.9 million pro forma diluted weighted average common shares outstanding.
Adjusted EBITDA
- Adjusted EBITDA, a non-GAAP measure, was $15.2 million compared to Adjusted EBITDA of $9.9 million in the second quarter of fiscal year 2017.
Balance Sheet and Cash Flow
- Cash and cash equivalents totaled $111.0 million at the end of the quarter.
- Cash flow from operations for the second quarter of fiscal year 2018 was $26.0 million compared to $13.5 million for the second quarter of fiscal year 2017.
A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Business Outlook
Based on information available as of February 8, 2018, Paylocity is issuing guidance for the third quarter and full fiscal year 2018 as indicated below.
Third Quarter 2018
- Total revenue is expected to be in the range of $110.0 million to $111.0 million.
- Adjusted EBITDA is expected to be in the range of $32.3 million to $33.3 million.
- Non-GAAP net income is expected to be in the range of $25.0 million to $26.0 million, or $0.45 to $0.47 per share, based on approximately 55 million diluted weighted average common shares outstanding.
Fiscal Year 2018
- Total revenue is expected to be in the range of $369.0 million to $371.0 million.
- Adjusted EBITDA is expected to be in the range of $76.0 million to $77.0 million.
- Non-GAAP net income is expected to be in the range of $48.0 million to $49.0 million, or $0.87 to $0.89 per share, based on approximately 55 million diluted weighted average common shares outstanding.
We are unable to reconcile these forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.
Conference Call Details
Paylocity will host a conference call to discuss its second quarter fiscal year 2018 results at 4 p.m. CST today (5 p.m. EST). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations website. Participants who choose to call in to the conference call can do so by dialing (855) 226-3021 or (315) 625-6892, using passcode 3271209. A replay of the call will be available and archived via webcast at www.paylocity.com.
About Paylocity
Paylocity is a provider of cloud-based payroll and human capital management, or HCM, software solutions. Paylocity’s comprehensive and easy-to-use solutions enable its clients to manage their workforces more effectively. Paylocity’s solutions help drive strategic human capital decision-making and improve employee engagement by enhancing the human resource, payroll, and finance capabilities of its clients. For more information, visit www.paylocity.com.
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, adjusted gross profit, adjusted recurring gross profit, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per share, non-GAAP sales and marketing, non-GAAP total research and development and non-GAAP general and administrative. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Adjusted gross profit and adjusted recurring gross profit are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized internal-use software costs. Non-GAAP operating income (loss) is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and the amortization of acquired intangibles. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and the amortization of acquired intangibles. Non-GAAP net income (loss) and non-GAAP net income (loss) per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and the amortization of acquired intangibles. Pro forma diluted weighted average number of common shares are adjusted for the weighted average effect of potentially diluted shares. Non-GAAP total research and development is adjusted for capitalized internal-use software costs and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Please note that other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company’s financial reporting. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.
Safe Harbor/forward looking statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, ability to scale its business, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management's estimates regarding future revenues and financial performance and other statements about management’s beliefs, intentions or goals. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to, risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets, including the potential repeal or replacement of the Affordable Care Act; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; Paylocity’s ability to sell new products and retain subscriptions for its existing products to its new and existing clients; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; difficulties in forecasting Paylocity’s tax position, including but not limited to the assessment of the need for a valuation allowance against its deferred tax position; potential adverse tax consequences to Paylocity as a result of the recently enacted Federal Tax Cut and Jobs Act; continued acceptance of SaaS as an effective method for delivery of payroll and HCM solutions; Paylocity’s ability to protect and defend its intellectual property; the risk that Paylocity’s security measures are compromised or the unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; and other risks and potential factors that could affect Paylocity’s business and financial results identified in Paylocity’s filings with the Securities and Exchange Commission (the “SEC”), including its 10-K filed with the SEC on August 11, 2017. Additional information will also be set forth in Paylocity’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
| PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Balance Sheets (in thousands, except per share data) | |||||||||
| June 30, | December 31, | ||||||||
| 2017 | 2017 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 103,468 | $ | 111,027 | |||||
| Accounts receivable, net | 2,040 | 2,739 | |||||||
| Prepaid expenses and other | 14,879 | 7,456 | |||||||
| Total current assets before funds held for clients | 120,387 | 121,222 | |||||||
| Funds held for clients | 942,459 | 1,345,702 | |||||||
| Total current assets | 1,062,846 | 1,466,924 | |||||||
| Long-term prepaid expenses | 1,535 | 1,072 | |||||||
| Capitalized internal-use software, net | 17,394 | 18,786 | |||||||
| Property and equipment, net | 40,756 | 48,354 | |||||||
| Intangible assets, net | 8,907 | 8,189 | |||||||
| Goodwill | 6,003 | 6,003 | |||||||
| Total assets | $ | 1,137,441 | $ | 1,549,328 | |||||
| Liabilities and Stockholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 2,046 | $ | 1,794 | |||||
| Accrued expenses | 30,301 | 29,128 | |||||||
| Total current liabilities before client fund obligations | 32,347 | 30,922 | |||||||
| Client fund obligations | 942,459 | 1,345,702 | |||||||
| Total current liabilities | 974,806 | 1,376,624 | |||||||
| Deferred rent | 14,621 | 14,243 | |||||||
| Deferred income tax liabilities, net | 401 | 308 | |||||||
| Total liabilities | $ | 989,828 | $ | 1,391,175 | |||||
| Stockholders’ equity: | |||||||||
| Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2017 and December 31, 2017 | $ | — | $ | — | |||||
| Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2017 and December 31, 2017; 51,738 shares issued and outstanding at June 30, 2017 and 52,590 shares issued and outstanding at December 31, 2017 | 52 | 53 | |||||||
| Additional paid-in capital | 192,837 | 202,512 | |||||||
| Accumulated deficit | (45,276 | ) | (44,302 | ) | |||||
| Accumulated other comprehensive loss | — | (110 | ) | ||||||
| Total stockholders’ equity | $ | 147,613 | $ | 158,153 | |||||
| Total liabilities and stockholders’ equity | $ | 1,137,441 | $ | 1,549,328 | |||||
| PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) (in thousands, except per share data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Recurring fees | $ | 65,347 | $ | 81,292 | $ | 127,267 | $ | 158,586 | |||||||||
| Interest income on funds held for clients | 731 | 1,783 | 1,448 | 3,400 | |||||||||||||
| Total recurring revenues | 66,078 | 83,075 | 128,715 | 161,986 | |||||||||||||
| Implementation services and other | 2,576 | 2,929 | 4,961 | 5,518 | |||||||||||||
| Total revenues | 68,654 | 86,004 | 133,676 | 167,504 | |||||||||||||
| Cost of revenues: | |||||||||||||||||
| Recurring revenues | 20,716 | 25,638 | 39,819 | 49,729 | |||||||||||||
| Implementation services and other | 9,667 | 11,202 | 18,923 | 22,070 | |||||||||||||
| Total cost of revenues | 30,383 | 36,840 | 58,742 | 71,799 | |||||||||||||
| Gross profit | 38,271 | 49,164 | 74,934 | 95,705 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing | 17,735 | 21,598 | 35,746 | 42,778 | |||||||||||||
| Research and development | 7,222 | 9,274 | 14,523 | 18,169 | |||||||||||||
| General and administrative | 14,957 | 18,159 | 28,815 | 34,110 | |||||||||||||
| Total operating expenses | 39,914 | 49,031 | 79,084 | 95,057 | |||||||||||||
| Operating income (loss) | (1,643 | ) | 133 | (4,150 | ) | 648 | |||||||||||
| Other income | 4 | 141 | 43 | 250 | |||||||||||||
| Income (loss) before income taxes | (1,639 | ) | 274 | (4,107 | ) | 898 | |||||||||||
| Income tax expense (benefit) | 32 | (157 | ) | 132 | (76 | ) | |||||||||||
| Net income (loss) | $ | (1,671 | ) | $ | 431 | $ | (4,239 | ) | $ | 974 | |||||||
| Other comprehensive loss, net of tax | |||||||||||||||||
| Unrealized losses on securities, net of tax | — | (105 | ) | — | (110 | ) | |||||||||||
| Total other comprehensive loss, net of tax | — | (105 | ) | — | (110 | ) | |||||||||||
| Comprehensive income (loss) | $ | (1,671 | ) | $ | 326 | $ | (4,239 | ) | $ | 864 | |||||||
| Net income (loss) per share: | |||||||||||||||||
| Basic | $ | (0.03 | ) | $ | 0.01 | $ | (0.08 | ) | $ | 0.02 | |||||||
| Diluted | $ | (0.03 | ) | $ | 0.01 | $ | (0.08 | ) | $ | 0.02 | |||||||
| Weighted-average shares used in computing net income (loss) per share: | |||||||||||||||||
| Basic | 51,384 | 52,502 | 51,308 | 52,197 | |||||||||||||
| Diluted | 51,384 | 54,818 | 51,308 | 54,639 | |||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises are included in the above line items:
| Three months ended December 31, | Six months ended December 31, | ||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||
| Cost of revenue - recurring | $600 | $753 | $1,205 | $1,490 | |||||
| Cost of revenue - implementation services and other | 373 | 390 | 721 | 834 | |||||
| Sales and marketing | 1,697 | 2,212 | 3,294 | 4,263 | |||||
| Research and development | 877 | 956 | 1,777 | 2,053 | |||||
| General and administrative | 3,127 | 3,895 | 5,848 | 6,861 | |||||
| Total | $6,674 | $8,206 | $12,845 | $15,501 | |||||
| PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Cash Flows (in thousands) | |||||||||
| Six Months Ended | |||||||||
| December 31, | |||||||||
| 2016 | 2017 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income (loss) | $ | (4,239 | ) | $ | 974 | ||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||
| Stock-based compensation expense | 12,448 | 14,424 | |||||||
| Depreciation and amortization expense | 9,103 | 13,438 | |||||||
| Deferred income tax expense (benefit) | 102 | (93 | ) | ||||||
| Provision for doubtful accounts | 60 | 76 | |||||||
| Net accretion of discounts and amortization of premiums on available-for-sale securities | — | (141 | ) | ||||||
| Net realized losses on sales of available-for-sale securities | — | 2 | |||||||
| Loss on disposal of equipment | 97 | 106 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (446 | ) | (775 | ) | |||||
| Prepaid expenses and other | 845 | 1,583 | |||||||
| Accounts payable | 46 | (88 | ) | ||||||
| Accrued expenses | (2,626 | ) | (1,290 | ) | |||||
| Tenant improvement allowance | — | 5,952 | |||||||
| Net cash provided by operating activities | 15,390 | 34,168 | |||||||
| Cash flows from investing activities: | |||||||||
| Purchases of available-for-sale securities from funds held for clients | — | (95,207 | ) | ||||||
| Proceeds from sales and maturities of available-for-sale securities from funds held for clients | — | 23,181 | |||||||
| Net change in funds held for clients' cash and cash equivalents | 147,151 | (331,078 | ) | ||||||
| Capitalized internal-use software costs | (6,279 | ) | (7,146 | ) | |||||
| Purchases of property and equipment | (10,038 | ) | (7,998 | ) | |||||
| Lease allowances used for tenant improvements | — | (5,952 | ) | ||||||
| Net cash provided by (used in) investing activities | 130,834 | (424,200 | ) | ||||||
| Cash flows from financing activities: | |||||||||
| Net change in client fund obligations | (147,151 | ) | 403,243 | ||||||
| Proceeds from employee stock purchase plan | 1,823 | 2,045 | |||||||
| Taxes paid related to net share settlement of equity awards | (5,135 | ) | (7,697 | ) | |||||
| Net cash provided by (used in) financing activities | (150,463 | ) | 397,591 | ||||||
| Net Change in Cash and Cash Equivalents | (4,239 | ) | 7,559 | ||||||
| Cash and Cash Equivalents—Beginning of Period | 86,496 | 103,468 | |||||||
| Cash and Cash Equivalents—End of Period | $ | 82,257 | $ | 111,027 | |||||
| Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||||
| Purchase of property and equipment and internal-use software, accrued but not paid | $ | 2,172 | $ | 482 | |||||
| Supplemental Disclosure of Cash Flow Information | |||||||||
| Cash paid for income taxes, net of refunds | $ | 26 | $ | 60 | |||||
| Paylocity Holding Corporation | |||||||||||||
| Reconciliation of GAAP to non-GAAP Financial Measures | |||||||||||||
| (In thousands except per share data) | |||||||||||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation from gross profit to adjusted gross profit: | |||||||||||||
| Gross profit | $ | 38,271 | $ | 49,164 | $ | 74,934 | $ | 95,705 | |||||
| Amortization of capitalized internal-use software costs | 1,950 | 3,314 | 3,634 | 6,703 | |||||||||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 973 | 1,143 | 1,926 | 2,324 | |||||||||
| Adjusted gross profit | $ | 41,194 | $ | 53,621 | $ | 80,494 | $ | 104,732 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation from total recurring revenues to adjusted recurring gross profit: | |||||||||||||
| Total recurring revenues | $ | 66,078 | $ | 83,075 | $ | 128,715 | $ | 161,986 | |||||
| Cost of recurring revenues | 20,716 | 25,638 | 39,819 | 49,729 | |||||||||
| Recurring gross profit | 45,362 | 57,437 | 88,896 | 112,257 | |||||||||
| Amortization of capitalized internal-use software costs | 1,950 | 3,314 | 3,634 | 6,703 | |||||||||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 600 | 753 | 1,205 | 1,490 | |||||||||
| Adjusted recurring gross profit | $ | 47,912 | $ | 61,504 | $ | 93,735 | $ | 120,450 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation from operating income (loss) to non-GAAP operating income: | |||||||||||||
| Operating income (loss) | $ | (1,643 | ) | $ | 133 | $ | (4,150 | ) | $ | 648 | |||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 6,674 | 8,206 | 12,845 | 15,501 | |||||||||
| Amortization of acquired intangibles | 381 | 359 | 762 | 718 | |||||||||
| Non-GAAP operating income | $ | 5,412 | $ | 8,698 | $ | 9,457 | $ | 16,867 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation from net income (loss) to non-GAAP net income: | |||||||||||||
| Net income (loss) | $ | (1,671 | ) | $ | 431 | $ | (4,239 | ) | $ | 974 | |||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 6,674 | 8,206 | 12,845 | 15,501 | |||||||||
| Amortization of acquired intangibles | 381 | 359 | 762 | 718 | |||||||||
| Non-GAAP net income | $ | 5,384 | $ | 8,996 | $ | 9,368 | $ | 17,193 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation from diluted weighted-average number of common shares as reported to pro forma diluted weighted-average number of common shares | |||||||||||||
| Diluted weighted-average number of common shares, as reported | 51,384 | 54,818 | 51,308 | 54,639 | |||||||||
| Weighted-average effect of potentially dilutive shares | 2,534 | - | 2,689 | - | |||||||||
| Pro forma diluted weighted-average number of common shares | 53,918 | 54,818 | 53,997 | 54,639 | |||||||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Calculation of non-GAAP net income per share: | |||||||||||||
| Non-GAAP net income | $ | 5,384 | $ | 8,996 | $ | 9,368 | $ | 17,193 | |||||
| Pro forma diluted weighted-average number of common shares | 53,918 | 54,818 | 53,997 | 54,639 | |||||||||
| Non-GAAP net income per share | $ | 0.10 | $ | 0.16 | $ | 0.17 | $ | 0.31 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation from net income (loss) to Adjusted EBITDA: | |||||||||||||
| Net income (loss) | $ | (1,671 | ) | $ | 431 | $ | (4,239 | ) | $ | 974 | |||
| Interest expense | - | - | - | - | |||||||||
| Income tax expense (benefit) | 32 | (157 | ) | 132 | (76 | ) | |||||||
| Depreciation and amortization expense | 4,835 | 6,765 | 9,103 | 13,438 | |||||||||
| EBITDA | 3,196 | 7,039 | 4,996 | 14,336 | |||||||||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 6,674 | 8,206 | 12,845 | 15,501 | |||||||||
| Adjusted EBITDA | $ | 9,870 | $ | 15,245 | $ | 17,841 | $ | 29,837 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation of non-GAAP Sales and Marketing: | |||||||||||||
| Sales and Marketing | $ | 17,735 | $ | 21,598 | $ | 35,746 | $ | 42,778 | |||||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 1,697 | 2,212 | 3,294 | 4,263 | |||||||||
| Non-GAAP Sales and Marketing | $ | 16,038 | $ | 19,386 | $ | 32,452 | $ | 38,515 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation of non-GAAP Total Research and Development: | |||||||||||||
| Research and Development | $ | 7,222 | $ | 9,274 | $ | 14,523 | $ | 18,169 | |||||
| Capitalized internal-use software costs | 3,392 | 3,395 | 6,279 | 7,146 | |||||||||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 877 | 956 | 1,777 | 2,053 | |||||||||
| Non-GAAP Total Research and Development | $ | 9,737 | $ | 11,713 | $ | 19,025 | $ | 23,262 | |||||
| Three months Ended December 31, | Six months Ended December 31, | ||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Reconciliation of non-GAAP General and Administrative: | |||||||||||||
| General and Administrative | $ | 14,957 | $ | 18,159 | $ | 28,815 | $ | 34,110 | |||||
| Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 3,127 | 3,895 | 5,848 | 6,861 | |||||||||
| Amortization of acquired intangibles | 381 | 359 | 762 | 718 | |||||||||
| Non-GAAP General and Administrative | $ | 11,449 | $ | 13,905 | $ | 22,205 | $ | 26,531 | |||||