Press release

Medallia Reports Record Third Quarter Fiscal 2021 Revenue

0
Sponsored by Businesswire

Medallia, Inc. (NYSE: MDLA), the global leader in experience management, today announced financial results for the quarter ended October 31, 2020.

“I was very pleased with our execution in Q3. We added the most new customers in any quarter. Our wins included major enterprise brands across verticals and geographies. We added more than a dozen new go-to-market partners and hired more strong talent to support our growth. With two full virtual quarters behind us, we are confident in our future prospects for Q4 and for fiscal year 2022,” said Leslie Stretch, president and CEO of Medallia.

“IDC research shows that customer experience is critical. It’s actually an increasing priority for the C-Suite post-COVID – according to our research it is the second most important thing behind resilient business operations,” said Alan Webber, vice president for Digital Strategy and Customer Experience, IDC. “CEOs and CFOs recognize the importance of customer experience because they are paying attention to the numbers.”

Financial Highlights for the Third Quarter of Fiscal 2021

  • Subscription revenue was $96.9 million, an increase of 22% from the same period last year. Total revenue for the quarter was $121.0 million, an increase of 17% from the same period last year.
  • Loss from operations for the quarter was $29.5 million, compared to loss from operations of $41.7 million in the same period last year. Non-GAAP income from operations for the third quarter was $2.1 million, compared to a loss of $2.0 million in the same period last year.
  • Net loss for the quarter was $32.2 million, or ($0.22) per share, basic and diluted, compared to net loss of $39.6 million, or ($0.31) per share, basic and diluted, in the same period last year. Non-GAAP net income was $1.1 million, or $0.01 per share, diluted, compared to a non-GAAP net loss of $932,000, or ($0.01) per share, basic and diluted, in the same period last year.
  • Cash and cash equivalents, current and noncurrent marketable securities were $657.1 million as of October 31, 2020.

For information regarding the non-GAAP financial measures discussed in this press release, please see the section titled “Non-GAAP Financial Measures.” Reconciliations between GAAP and non-GAAP financial measures are provided in the tables of this press release.

Recent Company Highlights

  • Recent wins include: Agency for Clinical Innovation, BlueVine Capital, Canadian Tire, Chargify, Corrigo, ENSEK, FEMA, GSA, Innova Sport, Noodles & Company, PODS®, Radisson Hotel Group US, Sales Benchmark Index, TBK Bank, Uncle Julio’s, Validators, Woodside Homes and Zinklar.
  • Acquired Stella Connect, a real-time feedback, coaching and quality management platform for customer service teams.
  • Acquired Sense360, a behavioral consumer intelligence and benchmarking leader, to help brands understand where, how, and why buyers and non-buyers spend their time and money.
  • Integrated Medallia LivingLens with Zoom Video Communications, enabling research and insights teams to capture powerful feedback from video sessions.
  • Launched Medallia Closed Loop Service for Salesforce on Salesforce AppExchange, empowering customers to enhance their contact center by closing the loop on customer service interactions.
  • Partnered with Tableau, bringing together Medallia’s best-in-class experience insights with Tableau’s advanced analytics and data visualization capabilities.
  • Partnered with Five9, providing call center and customer experience leaders with rich insights.
  • Announced a planned integration with Oracle CX Service.

Financial Outlook

Medallia is providing the following guidance for the fourth quarter ending January 31, 2021.

  • Subscription revenue in the range of $100.5 million to $101.5 million.
  • Total revenue in the range of $123.5 million to $125.5 million.
  • GAAP loss from operations in the range of $38.7 million to $31.7 million.
  • Non-GAAP income from operations in the range of $200,000 to $700,000.

Conference Call

Medallia will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss the third quarter of fiscal 2021 and our outlook for the fourth quarter of fiscal 2021. The conference call will be available via live webcast and replay at the Investor Relations section of Medallia’s website: https://investor.medallia.com/events-and-presentations/default.aspx.

About Medallia

Medallia (NYSE: MDLA) is the pioneer and market leader in Experience Management. Medallia’s award-winning SaaS platform, the Medallia Experience Cloud, leads the market in the understanding and management of experience for customers, employees and citizens. Medallia captures experience signals created on daily journeys in person, on calls and digital channels, over video and social media and IoT interactions and applies proprietary AI technology to reveal personalized and predictive insights that can drive action with tremendous business results. Using Medallia Experience Cloud, customers can reduce churn, turn detractors into promoters and buyers, create in-the-moment cross-sell and up-sell opportunities and drive revenue-impacting business decisions, providing clear and potent returns on investment.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit and gross margin, non-GAAP subscription revenue gross profit and gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss) and weighted average basic and diluted shares. Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes they are useful to investors, as a supplement to the corresponding GAAP financial measures, in evaluating our ongoing operational performance and trends and in comparing our financial measures with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. In addition, other companies may utilize metrics that are not similar to ours.

The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results. Management encourages investors and others to review Medallia’s financial information in its entirety and not rely on a single financial measure.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.

Employer payroll tax expense related to stock-based compensation. We exclude cash expenses for employer payroll taxes related to stock-based compensation, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of exercise or vesting, which may vary from period to period independent of the operating performance of our business.

Amortization of acquired intangible assets. We exclude amortization of acquired intangible assets, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of intangible assets are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

Acquisition-related costs. We exclude costs related to acquisitions from our non-GAAP financial measures. These costs include legal and transactional costs associated with acquisition activities.

Restructuring and other. We exclude restructuring and other from certain of our non-GAAP financial measures. Restructuring and other primarily consists of lease exit costs related to our office facilities.

Amortization of debt discount and issuance costs. We exclude costs related to the amortization of debt discount together with the issuance costs of the debt from certain of our non-GAAP financial measures. Under GAAP, we are required to separately account for liability (debt) and equity (conversion option) components of the convertible senior notes that were issued in a private placement in September 2020 and recognize the effective interest expense on our convertible senior notes and amortize the issuance costs over the term of these notes. The expense for the amortization of debt discount and debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Income tax benefits. We exclude tax benefits related to acquisitions from our non-GAAP financial measures. These tax benefits realized consist of the change in the valuation allowance resulting from acquisitions. In addition, we exclude tax benefits related to our stock option exercise deductions.

Non-GAAP Supplemental Financial Information

Subscription billings: We define subscription billings, a non-GAAP financial measure, as total subscription revenue plus the change in subscription deferred revenue and contract assets, excluding acquired contract assets.

Note on Forward-Looking Statements

The forward-looking statements included in this press release and in the accompanying conference call, including for example, the quotations of management, the statements under the heading “Financial Outlook” above, the information provided in the “Financial Outlook” section of the tables below, strategies, discussion of our commercial prospects, partnerships, estimates of future revenues, operating income/loss and expenses, stock-based compensation expense and related employer payroll tax expense, amortization of acquired intangible assets, acquisitions and acquisition-related costs, restructuring and other expenses, amortization of debt discount and issuance costs and income tax benefits, 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 including from an economic downturn or recession in the United States or in other countries around the world, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, including as a result of the COVID-19 pandemic and related public health measures, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, developments in and the duration of the COVID-19 pandemic and the resulting impact on our business and operations, and the business of our customers and partners, including the economic impact of safety measures to mitigate the impacts of COVID-19, 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 registration statements and periodic reports we filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed with the SEC on March 19, 2020 and our Quarterly Report on Form 10-Q filed with the SEC on September 9, 2020, which may be obtained on the Investor Relations section of Medallia’s website (https://investor.medallia.com/financials/sec-filings/default.aspx). Additionally, these forward-looking statements involve risk, uncertainties, and assumptions, including those related to the impacts of COVID-19 on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and are changing rapidly, including, but not limited to, the timeframes for and severity of social distancing and other mitigation requirements, the impact of COVID-19 on our customers’ purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by COVID-19. Significant variation from the assumptions underlying our forward-looking statements could cause our actual results to vary, and the impact could be significant. All forward-looking statements in this press release are based on information available to us as of the date hereof. We undertake no obligation, and do not intend, to update the information contained in this press release or the accompanying conference call, except as required by law.

© 2020 Medallia, Inc. All rights reserved. Medallia®, the Medallia logo, and the names and marks associated with Medallia’s products are trademarks of Medallia. All other trademarks are the property of their respective owners.

Medallia, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

October 31, 2020

 

January 31, 2020

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

497,688

 

 

$

226,866

 

Marketable securities

 

156,337

 

 

116,833

 

Trade and other receivables, net of allowance for doubtful accounts of $4,002 and $982 as of October 31, 2020 and January 31, 2020, respectively

 

97,666

 

 

150,661

 

Deferred commissions, current

 

27,460

 

 

22,455

 

Prepaid expenses and other current assets

 

23,533

 

 

22,492

 

Total current assets

 

802,684

 

 

539,307

 

Property and equipment, net

 

44,520

 

 

34,879

 

Deferred commissions, noncurrent

 

60,179

 

 

51,540

 

Intangible assets, net

 

64,159

 

 

21,306

 

Goodwill

 

260,562

 

 

79,324

 

Other noncurrent assets

 

13,571

 

 

5,293

 

Total assets

 

$

1,245,675

 

 

$

731,649

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

13,546

 

 

$

3,608

 

Accrued expenses and other current liabilities

 

31,118

 

 

20,268

 

Accrued compensation

 

29,425

 

 

37,160

 

Deferred revenue, current

 

193,979

 

 

263,115

 

Total current liabilities

 

268,068

 

 

324,151

 

Convertible senior notes, net

 

442,085

 

 

 

Deferred revenue, noncurrent

 

4,062

 

 

1,407

 

Deferred rent, noncurrent

 

5,617

 

 

2,799

 

Other liabilities

 

15,357

 

 

5,496

 

Total liabilities

 

735,189

 

 

333,853

 

Stockholders’ equity:

 

 

 

 

Common stock

 

145

 

 

132

 

Additional paid-in capital

 

1,092,357

 

 

878,843

 

Accumulated other comprehensive loss

 

(1,157)

 

 

(206)

 

Accumulated deficit

 

(580,859)

 

 

(480,973)

 

Total stockholders’ equity

 

510,486

 

 

397,796

 

Total liabilities and stockholders’ equity

 

$

1,245,675

 

 

$

731,649

 

Medallia, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

2019

 

2020

 

2019

Revenue:

 

 

 

 

 

 

 

 

Subscription

 

$

96,936

 

 

$

79,749

 

 

$

278,759

 

 

$

226,008

 

Professional services

 

24,022

 

 

23,325

 

 

70,415

 

 

66,355

 

Total revenue

 

120,958

 

 

103,074

 

 

349,174

 

 

292,363

 

Cost of revenue:

 

 

 

 

 

 

 

 

Subscription

 

21,065

 

 

16,296

 

 

57,539

 

 

44,456

 

Professional services

 

22,783

 

 

22,299

 

 

67,044

 

 

61,617

 

Total cost of revenue

 

43,848

 

 

38,595

 

 

124,583

 

 

106,073

 

Gross profit

 

77,110

 

 

64,479

 

 

224,591

 

 

186,290

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

28,034

 

 

26,321

 

 

88,203

 

 

68,630

 

Sales and marketing

 

58,333

 

 

47,067

 

 

162,290

 

 

127,152

 

General and administrative

 

20,288

 

 

32,758

 

 

70,923

 

 

72,672

 

Total operating expenses

 

106,655

 

 

106,146

 

 

321,416

 

 

268,454

 

Loss from operations

 

(29,545)

 

 

(41,667)

 

 

(96,825)

 

 

(82,164)

 

Interest income and other income (expense), net

 

(3,247)

 

 

2,001

 

 

(3,520)

 

 

2,574

 

Loss before provision for (benefits from) income taxes

 

(32,792)

 

 

(39,666)

 

 

(100,345)

 

 

(79,590)

 

Provision for (benefits from) income taxes

 

(633)

 

 

(46)

 

 

(459)

 

 

873

 

Net loss

 

$

(32,159)

 

 

$

(39,620)

 

 

$

(99,886)

 

 

$

(80,463)

 

 

 

 

 

 

 

 

 

 

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

 

$

(0.22)

 

 

$

(0.31)

 

 

$

(0.70)

 

 

$

(1.19)

 

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

 

147,930

 

 

127,715

 

 

142,179

 

 

67,735

 

GAAP to Non-GAAP Reconciliations

GAAP to Non-GAAP adjustments include stock-based compensation expense and related employer payroll tax expense, amortization of acquired intangible assets, acquisition-related costs, restructuring and other, amortization of debt discount and issuance costs and income tax benefits as follows:

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

2019

 

2020

 

2019

Cost of revenue:

 

 

 

 

 

 

 

 

Subscription

 

$

2,746

 

 

$

1,578

 

 

$

7,118

 

 

$

3,099

 

Professional services

 

2,638

 

 

2,820

 

 

8,344

 

 

6,067

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

5,154

 

 

6,292

 

 

22,566

 

 

11,533

 

Sales and marketing

 

11,986

 

 

9,099

 

 

32,524

 

 

19,076

 

General and administrative

 

9,096

 

 

19,858

 

 

34,362

 

 

40,003

 

Interest income and other income (expense), net

 

2,762

 

 

2,762

 

Provision for (benefits from) income taxes

 

(1,087)

 

 

(959)

 

(2,558)

 

(1,375)

Total

 

$

33,295

 

 

$

38,688

 

 

$

105,118

 

 

$

78,403

 

Medallia, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended October 31,

 

 

2020

 

2019

Operating activities

 

 

 

 

Net loss

 

$

(99,886)

 

 

$

(80,463)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

19,776

 

 

10,812

 

Amortization of deferred commissions

 

19,167

 

 

13,616

 

Stock-based compensation expense

 

81,453

 

 

80,296

 

Gain on property and equipment, and lease termination

 

 

 

(13,783)

 

Lease exit costs

 

7,828

 

 

 

Amortization of debt discount and issuance costs

 

2,762

 

 

 

Other

 

2,864

 

 

(1,463)

 

Changes in assets and liabilities:

 

 

 

 

Trade and other receivables

 

52,783

 

 

36,627

 

Deferred commissions

 

(32,811)

 

 

(24,108)

 

Prepaid expenses and other current assets

 

(220)

 

 

(5,849)

 

Other noncurrent assets

 

(3,421)

 

 

92

 

Accounts payable

 

6,676

 

 

2,655

 

Deferred revenue

 

(71,387)

 

 

(49,921)

 

Accrued expenses and other current liabilities

 

(3,088)

 

 

10,410

 

Other noncurrent liabilities

 

6,308

 

 

17

 

Net cash used in operating activities

 

(11,196)

 

 

(21,062)

 

Investing activities

 

 

 

 

Purchases of property, equipment and other

 

(14,829)

 

 

(14,250)

 

Purchase of marketable securities

 

(294,220)

 

 

(76,122)

 

Maturities of marketable securities

 

250,733

 

 

53,604

 

Proceeds from sale of marketable securities

 

1,100

 

 

511

 

Acquisitions, net of cash acquired

 

(223,647)

 

 

(75,238)

 

Other

 

 

 

(1,500)

 

Net cash used in investing activities

 

(280,863)

 

 

(112,995)

 

Financing activities

 

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

 

558,998

 

 

 

Purchase of capped calls related to convertible senior notes

 

(61,870)

 

 

 

Proceeds from initial public offering net of issuance costs, underwriters discounts and commissions, and concurrent private placement

 

 

 

319,972

 

Proceeds from Series F convertible preferred stock, net of issuance costs

 

 

 

69,848

 

Proceeds from revolving line of credit

 

43,000

 

 

 

Repayment of revolving line of credit

 

(43,000)

 

 

 

Proceeds from exercise of stock options

 

57,724

 

 

16,451

 

Payments for employee taxes withheld upon vesting of restricted stock units

 

 

 

(15,592)

 

Proceeds from share purchase plan

 

17,828

 

 

 

Principal payments on capital leases

 

(3,405)

 

 

(2,505)

 

Repayment of debt assumed in acquisitions and other

 

(6,445)

 

 

(2,297)

 

Net cash provided by financing activities

 

562,830

 

 

385,877

 

Effect of exchange rate changes on cash and cash equivalents

 

51

 

 

(45)

 

Net increase in cash and cash equivalents

 

270,822

 

 

251,775

 

Cash and cash equivalents at beginning of period

 

226,866

 

 

44,876

 

Cash and cash equivalents at end of period

 

$

497,688

 

 

$

296,651

 

Medallia, Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

2019

 

2020

 

2019

Non-GAAP gross profit reconciliation:

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

77,110

 

 

$

64,479

 

 

$

224,591

 

 

$

186,290

 

GAAP gross margin

 

 

64

%

 

 

63

%

 

 

64

%

 

 

64

%

Add:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

3,422

 

 

 

3,656

 

 

 

10,679

 

 

 

8,059

 

Employer payroll tax expense related to stock-based compensation

 

 

136

 

 

 

112

 

 

 

557

 

 

 

112

 

Amortization of acquired intangible assets

 

 

1,826

 

 

 

630

 

 

 

4,226

 

 

 

995

 

Non-GAAP gross profit

 

$

82,494

 

 

$

68,877

 

 

$

240,053

 

 

$

195,456

 

Non-GAAP gross margin

 

 

68

%

 

 

67

%

 

 

69

%

 

 

67

%

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

2019

 

2020

 

2019

Non-GAAP subscription revenue gross profit reconciliation:

 

 

 

 

 

 

 

 

GAAP subscription revenue gross profit

 

$

75,871

 

 

$

63,453

 

 

$

221,220

 

 

$

181,552

 

GAAP subscription revenue gross margin

 

 

78

%

 

 

80

%

 

 

79

%

 

 

80

%

Add:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

870

 

 

 

948

 

 

 

2,725

 

 

 

2,104

 

Employer payroll tax expense related to stock-based compensation

 

 

50

 

 

 

 

 

 

167

 

 

 

 

Amortization of acquired intangible assets

 

 

1,826

 

 

 

630

 

 

 

4,226

 

 

 

995

 

Non-GAAP subscription revenue gross profit

 

$

78,617

 

 

$

65,031

 

 

$

228,338

 

 

$

184,651

 

Non-GAAP subscription revenue gross margin

 

 

81

%

 

 

82

%

 

 

82

%

 

 

82

%

Medallia, Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

2019

 

2020

 

2019

Non-GAAP operating expenses reconciliation:

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

106,655

 

 

$

106,146

 

 

$

321,416

 

 

$

268,454

 

GAAP operating expenses, as a % of total revenue

 

 

88

%

 

 

103

%

 

 

92

%

 

 

92

%

Add (subtract):

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(21,593

)

 

 

(33,499

)

 

 

(70,774

)

 

 

(72,237

)

Employer payroll tax expense related to stock-based compensation

 

 

(1,464

)

 

 

(547

)

 

 

(5,028

)

 

 

(547

)

Amortization of acquired intangible assets

 

 

(1,378

)

 

 

(113

)

 

 

(2,485

)

 

 

(115

)

Acquisition-related costs

 

 

(1,396

)

 

 

(1,090

)

 

 

(3,044

)

 

 

(1,766

)

Restructuring and other

 

 

(405

)

 

 

 

 

 

(8,121

)

 

 

4,053

 

Non-GAAP operating expenses

 

$

80,419

 

 

$

70,897

 

 

$

231,964

 

 

$

197,842

 

Non-GAAP operating expenses, as a % of total revenue

 

 

66

%

 

 

69

%

 

 

66

%

 

 

68

%

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

2019

 

2020

 

2019

Non-GAAP income (loss) from operations reconciliation:

 

 

 

 

 

 

 

 

GAAP loss from operations

 

$

(29,545

)

 

$

(41,667

)

 

$

(96,825

)

 

$

(82,164

)

GAAP loss from operations, as a % of total revenue

 

 

(24

)%

 

 

(40

)%

 

 

(28

)%

 

 

(28

)%

Add (subtract):

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

25,015

 

 

 

37,155

 

 

 

81,453

 

 

 

80,296

 

Employer payroll tax expense related to stock-based compensation

 

 

1,600

 

 

 

659

 

 

 

5,585

 

 

 

659

 

Amortization of acquired intangible assets

 

 

3,204

 

 

 

743

 

 

 

6,711

 

 

 

1,110

 

Acquisition-related costs

 

 

1,396

 

 

 

1,090

 

 

 

3,044

 

 

 

1,766

 

Restructuring and other

 

 

405

 

 

 

 

 

 

8,121

 

 

 

(4,053

)

Non-GAAP income (loss) from operations

 

$

2,075

 

 

$

(2,020

)

 

$

8,089

 

 

$

(2,386

)

Non-GAAP income (loss) from operations, as a % of total revenue

 

 

2

%

 

 

(2

)%

 

 

2

%

 

 

(1

)%

Medallia, Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

2019

 

2020

 

2019

Non-GAAP net loss reconciliation:

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(32,159

)

 

$

(39,620

)

 

$

(99,886

)

 

$

(80,463

)

GAAP net loss as a % of total revenue

 

 

(27

)%

 

 

(38

)%

 

 

(29

)%

 

 

(28

)%

Add (subtract):

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

25,015

 

 

 

37,155

 

 

 

81,453

 

 

 

80,296

 

Employer payroll tax expense related to stock-based compensation

 

 

1,600

 

 

 

659

 

 

 

5,585

 

 

 

659

 

Amortization of acquired intangible assets

 

 

3,204

 

 

 

743

 

 

 

6,711

 

 

 

1,110

 

Acquisition-related costs

 

 

1,396

 

 

 

1,090

 

 

 

3,044

 

 

 

1,766

 

Restructuring and other

 

 

405

 

 

 

 

 

 

8,121

 

 

 

(4,053

)

Amortization of debt discount and issuance costs

 

 

2,762

 

 

 

 

 

 

2,762

 

 

 

 

Income tax benefits

 

 

(1,087

)

 

 

(959

)

 

 

(2,558

)

 

 

(1,375

)

Non-GAAP net income (loss)

 

$

1,136

 

 

$

(932

)

 

$

5,232

 

 

$

(2,060

)

Non-GAAP net income (loss) as a % of total revenue

 

 

1

%

 

 

(1

)%

 

 

1

%

 

 

(1

)%

 

 

 

 

 

 

 

 

 

Weighted average shares – basic

 

 

147,930

 

 

 

127,715

 

 

 

142,179

 

 

 

67,735

 

Weighted average shares – diluted

 

 

176,676

 

 

 

127,715

 

 

 

173,549

 

 

 

67,735

 

Medallia, Inc.

Non-GAAP Supplemental Financial Information

(in thousands, except percentages)

(unaudited)

 

 

 

Trailing Twelve Months Ended October 31,

 

 

2020

 

2019

Subscription billings:

 

 

 

 

Subscription revenue

 

$

364,918

 

 

$

293,882

 

Increase in subscription deferred revenue

 

 

30,205

 

 

 

35,448

 

Decrease in contract assets

 

 

119

 

 

 

1,370

 

Subscription billings

 

$

395,242

 

 

$

330,700

 

Subscription billings growth rate

 

 

20

%

 

 

24

%

 

Medallia, Inc.

Financial Outlook

(in thousands, except percentages)

(unaudited)

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 our future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and we assume no obligation to update.

Reconciliation of GAAP to Non-GAAP Forward Looking Guidance Measures

 

 

Three Months Ended January 31, 2021

 

 

Low

 

High

GAAP loss from operations

 

$

(38,700)

 

 

$

(31,700)

 

 

 

 

 

 

Stock-based compensation

 

26,000

 

24,000

Employer payroll tax expense related to stock-based compensation

 

3,000

 

1,500

Amortization of acquired intangible assets

 

4,400

 

3,900

Acquisition-related costs

 

500

 

Restructuring and other

 

5,000

 

3,000

Non-GAAP income from operations

 

$

200

 

 

$

700