Model N, Inc. (NYSE: MODN), a leader in cloud revenue management
solutions, today announced financial results for the second quarter
of fiscal year 2024 ended March 31, 2024.
Second Quarter 2024 Financial
Highlights
- Revenues: Total revenues were $65.1 million, an increase
of 4% from the second quarter of fiscal year 2023. Subscription
revenues were $49.2 million, an increase of 9% from the second
quarter of fiscal year 2023.
- Gross Profit: Gross profit was $37.2 million, an
increase of 6% from the second quarter of fiscal year 2023. Gross
margin was 57% for the second quarter of fiscal year 2024 compared
to 56% for the second quarter of fiscal year 2023. Non-GAAP gross
profit was $39.8 million, an increase of 5% from the second quarter
of fiscal year 2023. Non-GAAP gross margin was 61% for the second
quarter of fiscal year 2024 compared to 60% for the second quarter
of fiscal year 2023. Subscription gross margin was 66% compared to
64% for the second quarter of fiscal year 2023. Non-GAAP
subscription gross margin was 69% compared to 68% for the second
quarter of fiscal year 2023.
- GAAP Loss and Non-GAAP Income from Operations: GAAP loss
from operations was $2.6 million compared to loss from operations
of $3.1 million for the second quarter of fiscal year 2023.
Non-GAAP income from operations was $10.7 million, an increase of
19% from the second quarter of fiscal year 2023.
- GAAP Net Loss: GAAP net loss was $1.4 million compared
to a net loss of $33.3 million for the second quarter of fiscal
year 2023. GAAP diluted net loss per share attributable to common
stockholders was $0.04 based upon weighted average shares
outstanding of 39.2 million compared to net loss per share of $0.88
for the second quarter of fiscal year 2023 based upon weighted
average shares outstanding of 37.9 million.
- Non-GAAP Net Income: Non-GAAP net income, was $9.4
million, an increase of 38% from the second quarter of fiscal year
2023. Non-GAAP net income per diluted share was $0.24 based upon
diluted weighted average shares outstanding of 39.7 million
compared to non-GAAP net income per diluted share of $0.18 for the
second quarter of fiscal year 2023 based upon diluted weighted
average shares outstanding of 38.9 million. Beginning second
quarter of fiscal year 2024, Non-GAAP net income is presented after
provision for Non-GAAP provision for income tax. The Company
utilized a federal rate plus a net state rate that excluded the
impact of NOLs and valuation allowances to calculate its non-GAAP
blended statutory rate. All periods presented were revised to
conform with this presentation.
- Adjusted EBITDA: Adjusted EBITDA was $10.9 million, an
increase of 18% from the second quarter of fiscal year 2023.
Adjusted EBITDA margin was 17% compared to 15% for the second
quarter of fiscal year 2023.
- SaaS ARR and SaaS Net Dollar Retention: SaaS ARR hit
$139.1 million, representing growth of 11% year-over-year. Trailing
12-month SaaS net dollar retention was 108%.
- RPO and Current RPO: Total RPO balance was $367.9
million, which was up 9% on a year-over-year basis and up 6%
sequentially. The current portion of our RPO balance was up to
$168.3 million, representing growth of 15% year-over-year and up 7%
sequentially.
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the financial tables included in this press
release.
Transaction with Vista Equity Partners
Due to the Company’s pending acquisition by affiliates of Vista
Equity Partners that was announced on April 8, 2024 there will not
be a conference call or live webcast to discuss these financial
results. In addition, the Company will not be providing financial
guidance for the third quarter of fiscal year 2024 and is
suspending its financial guidance for the full fiscal year 2024 as
a result of the pending transaction.
About Model N
Model N is a leader in revenue optimization and compliance for
pharmaceutical, medtech, and high-tech innovators. Our intelligent
platform powers your digital transformation with integrated
technology, data, analytics, and expert services that deliver deep
insight and control.
Our integrated cloud solution is proven to automate pricing,
incentive, and contract decisions to scale business profitably and
grow revenue. Model N is trusted across more than 120 countries by
the world’s leading pharmaceutical, medical technology,
semiconductor, and high-tech companies, including Johnson &
Johnson, AstraZeneca, Stryker, Seagate Technology, Broadcom, and
Microchip Technology. For more information, visit www.modeln.com.
Additional Information and Where to
Find It
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. This press release may be deemed to be
solicitation material in respect of the proposed transaction
involving Model N, Inc. (“Model N”) and affiliates of Vista Equity
Partners. In connection with the proposed transaction, Model N has
filed a preliminary proxy statement on Schedule 14A with the
Securities and Exchange Commission (the “SEC”) and intends to file
a definitive proxy statement on Schedule 14A and furnish to
stockholders a proxy statement and WHITE proxy card. This press
release is not a substitute for the proxy statement or any other
document that Model N may file with the SEC or send to its
stockholders in connection with the proposed transaction. INVESTORS
AND STOCKHOLDERS OF MODEL N ARE URGED TO READ THE PROXY STATEMENT
AND OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BEFORE
MAKING ANY VOTING DECISION WITH RESPECT TO THE PROPOSED TRANSACTION
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT MODEL N AND
THE PROPOSED TRANSACTION. The preliminary proxy statement and
future materials to be filed by Model N will be made available to
Model N’s investors and stockholders at no expense to them and
copies may be obtained free of charge on Model N’s website at
https://investor.modeln.com/. In addition, all of those materials
will be available at no charge on the SEC’s website at
www.sec.gov.
Model N and its directors, executive officers, other members of
its management and employees may be deemed to be participants in
the solicitation of proxies of Model N stockholders in connection
with the proposed transaction under SEC rules. Investors and
stockholders may obtain more detailed information regarding the
names, affiliations and interests of Model N’s executive officers
and directors in the solicitation by reading the preliminary proxy
statement filed with the SEC in connection with the transaction,
the Annual Report on Form 10-K for the fiscal year ended September
30, 2023 and the subsequent Quarterly Reports on Form 10-Q, and the
definitive proxy statement and other relevant materials that will
be filed with the SEC in connection with the proposed transaction
when they become available. Information concerning the interests of
Model N’s participants in the solicitation, which may, in some
cases, be different than those of the Model N’s stockholders
generally, are set forth in the preliminary proxy statement filed
with the SEC and will be set forth in the definitive proxy
statement relating to the proposed transaction when it becomes
available.
Forward-Looking
Statements
This press release may contain forward-looking statements
including, among other things, statements regarding the potential
merger and financial results of the Model N, as well as any
assumptions underlying any of the foregoing. The words “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
subject to risks, uncertainties, and assumptions. If the risks
materialize or assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking
statements. Risks include, but are not limited to: (i) the ability
to obtain the requisite approval from stockholders of Model N; (ii)
the risk that the proposed transaction may not be completed in a
timely manner or at all; (iii) the possibility that competing
offers or acquisition proposals for Model N will be made; (iv) the
possibility that any or all of the various conditions to the
consummation of the proposed transaction may not be satisfied or
waived, including the failure to receive any required regulatory
approvals from any applicable governmental entities; (v) the
occurrence of any event, change or other circumstance that could
give rise to the termination of the merger agreement, including in
circumstances that would require Model N to pay a termination fee
or other expenses; (vi) the effect of the pendency of the proposed
transaction on Model N’s ability to retain and hire key personnel,
its ability to maintain relationships with its customers, suppliers
and others with whom it does business, its business generally or
its stock price; (vii) risks related to diverting management’s
attention from Model N’s ongoing business operations or the loss of
one or more members of the management team; (viii) the risk that
stockholder litigation in connection with the proposed transaction
may result in significant costs of defense, indemnification and
liability; (ix) delays in closing customer contracts; (x) Model N’s
ability to improve and sustain its sales execution, including
increasing bookings and growing revenues; (xi) the timing of new
orders and the associated revenue recognition; (xii) adverse
changes in general economic or market conditions; (xiii) delays or
reductions in information technology spending and resulting
variability in customer orders from quarter to quarter; (xiv)
competitive factors, including but not limited to pricing
pressures, industry consolidation, entry of new competitors and new
applications and marketing initiatives by Model N’s competitors;
(xv) Model N’s ability to increase and manage its growth
effectively; (xvi) acceptance of Model N’s applications and
services by customers; (xvii) success of new products; (xviii) the
risk that the strategic initiatives that Model N may pursue will
not result in significant future revenues; (xiv) changes in health
care regulation and policy and tax in the United States and
worldwide; (xx) Model N’s ability to retain customers; and (xxi)
adverse impacts on Model N’s business and financial condition due
to macroeconomic and geopolitical factors, such as inflation,
rising interests, pandemics, banking system instability and
geopolitical conflicts. Further information on risks that could
affect Model N’s results is included in its filings with the SEC,
including its most recent quarterly report on Form 10-Q and its
annual report on Form 10-K for the fiscal year ended September 30,
2023, and any current reports on Form 8-K that it may file from
time to time. Should any of these risks or uncertainties
materialize, actual results could differ materially from
expectations. Model N assumes no obligation to, and does not
currently intend to, update any such forward-looking statements
after the date of this communication.
Non-GAAP Financial
Measures
We have provided in this release financial information that has
not been prepared in accordance with accounting standards generally
accepted in the United States of America (“GAAP”). We use these
non-GAAP financial measures internally in analyzing our financial
results and believe they are useful to investors, as a supplement
to GAAP measures, in evaluating our ongoing operational
performance. We believe that the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating ongoing operating results and trends, and in comparing
our financial results with other companies in our industry, many of
which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures below. A
reconciliation of our non-GAAP financial measures to their most
directly comparable GAAP measures has been provided in the
financial statement tables included below in this press
release.
Our reported results include certain non-GAAP financial
measures, including non-GAAP gross profit, non-GAAP gross margin,
non-GAAP subscription gross profit, non-GAAP subscription gross
margin, non-GAAP income from operations, non-GAAP net income,
non-GAAP net income per share, adjusted EBITDA and free cash flow.
Non-GAAP gross profit and subscription gross profit excludes
stock-based compensation expenses and amortization of intangible
assets as they are often excluded by other companies to help
investors understand the operational performance of their business.
Non-GAAP income from operations excludes stock-based compensation
expense and amortization of intangible assets. Non-GAAP net income
excludes stock-based compensation expense, amortization of
intangible assets, amortization of debt issuance costs, and loss on
extinguishment of debt. Additionally, stock-based compensation
expense varies from period to period and from company to company
due to such things as valuation methodologies and changes in stock
price. Adjusted EBITDA is defined as net loss, adjusted for
depreciation and amortization, stock-based compensation expense,
interest expenses, interest income, other income (expenses), net,
provision for income taxes, and loss on extinguishment of debt.
Reconciliation tables are provided in this press release.
SaaS ARR is defined as the annualized value of our SaaS revenue,
which is derived by dividing the SaaS portion of our recurring
subscription revenue for the quarter by the number of days in the
quarter, and multiplying it by 365 to get an annualized number.
SaaS Net Dollar Retention uses the same SaaS ARR calculations to
measure the percentage change in SaaS ARR from customers that are
in the current period and the year-ago period. SaaS ARR that has
been added from new customers that were not in the year-ago
calculation is excluded from the SaaS Net Dollar Retention
calculation. SaaS Net Dollar Retention has been reduced by any
amount of churn for the customers that were in the year-ago period.
SaaS ARR and SaaS Net Dollar Retention should be viewed
independently of revenue, deferred revenue, and remaining
performance obligations, and are not intended to be a substitute
for, or combined with, any of these items.
Free cash flow is defined as net cash provided by operating
activities less cash used for purchase of property plant and
equipment.
We have not reconciled guidance for non-GAAP financial measures
to their most directly comparable GAAP measures because certain
items that impact these measures are uncertain, out of our control
and/or cannot be reasonably predicted or estimated, such as the
difficulties of estimating certain items such as charges to
stock-based compensation expense. Accordingly, a reconciliation of
the non-GAAP financial measure guidance to the corresponding GAAP
measures is not available without unreasonable effort.
Model N, Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
As of March 31, 2024
As of September 30,
2023
Assets
Current assets
Cash and cash equivalents
$
334,559
$
301,355
Funds held for customers
86
91
Accounts receivable, net
79,260
61,761
Prepaid expenses
4,610
5,922
Other current assets
8,462
14,777
Total current assets
426,977
383,906
Property and equipment, net
1,125
1,242
Operating lease right-of-use assets
7,707
9,885
Goodwill
65,665
65,665
Intangible assets, net
26,795
30,176
Other assets
10,131
9,221
Total assets
$
538,400
$
500,095
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
4,483
$
3,888
Customer funds payable
86
91
Accrued employee compensation
14,257
14,645
Accrued liabilities
5,485
8,700
Operating lease liabilities, current
portion
4,151
4,408
Deferred revenue, current portion
82,074
61,745
Total current liabilities
110,536
93,477
Long-term liabilities
Long term debt
281,203
280,358
Operating lease liabilities, less current
portion
4,705
6,755
Other long-term liabilities
4,933
4,042
Total long-term liabilities
290,841
291,155
Total liabilities
401,377
384,632
Stockholders’ equity
Common stock
6
6
Additional paid-in capital
439,297
414,562
Accumulated other comprehensive loss
(2,235
)
(2,245
)
Accumulated deficit
(300,045
)
(296,860
)
Total stockholders’ equity
137,023
115,463
Total liabilities and stockholders’
equity
$
538,400
$
500,095
Model N, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per share
amounts)
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Revenues
Subscription
$
49,182
$
44,925
$
96,837
$
89,139
Professional services
15,929
17,679
31,765
32,619
Total revenues
65,111
62,604
128,602
121,758
Cost of revenues
Subscription
16,833
16,121
33,544
31,727
Professional services
11,040
11,499
22,198
22,164
Total cost of revenues
27,873
27,620
55,742
53,891
Gross profit
37,238
34,984
72,860
67,867
Operating expenses
Research and development
12,588
12,403
25,268
25,167
Sales and marketing
15,157
14,222
29,117
27,199
General and administrative
12,118
11,481
23,767
22,172
Total operating expenses
39,863
38,106
78,152
74,538
Loss from operations
(2,625
)
(3,122
)
(5,292
)
(6,671
)
Interest expense
1,836
1,508
3,670
2,942
Loss on extinguishment of debt
—
29,493
—
29,493
Interest income
$
(3,842
)
(1,789
)
(7,382
)
(3,089
)
Other expenses (income), net
(10
)
83
107
18
Loss before income taxes
(609
)
(32,417
)
(1,687
)
(36,035
)
Provision for income taxes
778
902
1,498
1,334
Net loss
$
(1,387
)
$
(33,319
)
$
(3,185
)
$
(37,369
)
Net loss per share:
Basic and diluted
$
(0.04
)
$
(0.88
)
$
(0.08
)
$
(0.99
)
Weighted average number of shares used in
computing net loss per share:
Basic and diluted
39,225
37,917
39,062
37,719
Model N, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
Six Months Ended March
31,
2024
2023
Cash Flows from Operating Activities:
Net loss
$
(3,185
)
$
(37,369
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
3,816
4,262
Stock-based compensation
22,187
20,767
Amortization of debt issuance costs
845
629
Loss on extinguishment of debt
—
29,493
Deferred income taxes
249
(156
)
Amortization of capitalized contract
acquisition costs
2,642
2,416
Other non-cash charges
(4
)
1,077
Changes in assets and liabilities, net of
acquisition:
Accounts receivable
(17,519
)
(27,963
)
Prepaid expenses and other assets
6,325
8,471
Accounts payable
582
(1,300
)
Accrued employee compensation
(390
)
(9,890
)
Other current and long-term
liabilities
(5,051
)
(5,150
)
Deferred revenue
20,493
8,563
Net cash provided by (used in) operating
activities
30,990
(6,150
)
Cash Flows from Investing Activities:
Purchases of property and equipment
(339
)
(106
)
Net cash used in investing activities
(339
)
(106
)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options
and issuance of common stock under employee stock purchase plan
2,548
2,555
Proceeds from issuance of 2028 Notes
—
253,000
Payment of debt issuance cost for 2028
Notes
—
(6,958
)
Repayments of 2025 Notes
—
(165,210
)
Net changes in customer funds payable
(5
)
(374
)
Net cash provided by financing
activities
2,543
83,013
Effect of exchange rate changes on cash
and cash equivalents
5
(12
)
Net increase in cash and cash
equivalents
33,199
76,745
Cash and cash equivalents
Beginning of period
301,446
194,127
End of period
$
334,645
$
270,872
Model N, Inc.
Reconciliation of GAAP to
Non-GAAP Operating Results
(in thousands, except per share
amounts)
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Reconciliation from GAAP net loss to
adjusted EBITDA
GAAP net loss
$
(1,387
)
$
(33,319
)
$
(3,185
)
$
(37,369
)
Reversal of non-GAAP items
Stock-based compensation expense
11,622
10,362
22,187
20,767
Depreciation and amortization
1,856
1,989
3,816
4,262
Interest expense
1,836
1,508
3,670
2,942
Loss on extinguishment of debt
—
29,493
—
29,493
Interest income
(3,842
)
(1,789
)
(7,382
)
(3,089
)
Other (income) expense, net
(10
)
83
107
18
Provision for income taxes
778
902
1,498
1,334
Adjusted EBITDA
$
10,853
$
9,229
$
20,711
$
18,358
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Reconciliation from GAAP gross profit to
non-GAAP gross profit
GAAP gross profit
$
37,238
$
34,984
$
72,860
$
67,867
Reversal of non-GAAP expenses
Stock-based compensation (a)
2,175
2,370
4,390
4,847
Amortization of intangible assets (b)
427
427
854
1,136
Non-GAAP gross profit
$
39,840
$
37,781
$
78,104
$
73,850
Percentage of revenue
61.2
%
60.3
%
60.7
%
60.7
%
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Reconciliation from GAAP subscription
gross profit to non-GAAP subscription gross profit
GAAP subscription gross profit
$
32,349
$
28,804
$
63,293
$
57,412
Reversal of non-GAAP expenses
Stock-based compensation (a)
1,208
1,307
2,443
2,644
Amortization of intangible assets (b)
427
427
854
1,136
Non-GAAP subscription gross profit
$
33,984
$
30,538
$
66,590
$
61,192
Percentage of subscription revenue
69.1
%
68.0
%
68.8
%
68.6
%
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Reconciliation from GAAP professional
services gross profit to non-GAAP professional services gross
profit
GAAP professional services gross
profit
$
4,889
$
6,180
$
9,567
$
10,455
Reversal of non-GAAP expenses
Stock-based compensation (a)
967
1,063
1,947
2,203
Non-GAAP professional services gross
profit
$
5,856
$
7,243
$
11,514
$
12,658
Percentage of professional services
revenue
36.8
%
41.0
%
36.2
%
38.8
%
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Reconciliation from GAAP operating loss to
non-GAAP operating income
GAAP operating loss
$
(2,625
)
$
(3,122
)
$
(5,292
)
$
(6,671
)
Reversal of non-GAAP expenses
Stock-based compensation (a)
11,622
10,362
22,187
20,767
Amortization of intangible assets (b)
1,655
1,726
3,381
3,734
Non-GAAP operating income
$
10,652
$
8,966
$
20,276
$
17,830
Numerator
Reconciliation between GAAP net loss and
non-GAAP net income
GAAP net loss
$
(1,387
)
$
(33,319
)
$
(3,185
)
$
(37,369
)
GAAP provision for income tax
778
902
1,498
1,334
GAAP loss before provision for income
tax
(609
)
(32,417
)
(1,687
)
(36,035
)
Reversal of non-GAAP expenses
Stock-based compensation (a)
11,622
10,362
22,187
20,767
Amortization of intangible assets (b)
1,655
1,726
3,381
3,734
Loss on extinguishment of debt (c)
—
29,493
—
29,493
Amortization of debt issuance costs
(c)
424
327
845
629
Non-GAAP net income before income tax
provision
$
13,092
$
9,491
$
24,726
$
18,588
Non-GAAP provision for income taxes
(d)
(3,666
)
(2,657
)
(6,923
)
(5,205
)
Non-GAAP net income
$
9,426
$
6,834
$
17,803
$
13,383
Denominator
Reconciliation between GAAP net loss and
non-GAAP net income per share
Shares used in computing GAAP net loss per
share:
Basic
39,225
37,917
39,062
37,719
Diluted
39,225
37,917
39,062
37,719
Shares used in computing non-GAAP net
income per share
Basic
39,225
37,917
39,062
37,719
Add: effect of shares for stock plan
activity
434
555
335
589
Add: effect of shares related to
convertible senior notes
—
378
—
486
Diluted
39,659
38,850
39,397
38,794
GAAP net loss per share
Basic and diluted
$
(0.04
)
$
(0.88
)
$
(0.08
)
$
(0.99
)
Non-GAAP net income per share
Basic
$
0.24
$
0.18
$
0.46
$
0.35
Diluted
$
0.24
$
0.18
$
0.45
$
0.34
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Amortization of intangibles assets
recorded in the statements of operations
Cost of revenues
Subscription
$
427
$
427
$
854
$
1,136
Total amortization of intangibles assets
in cost of revenue (b)
427
427
854
1,136
Operating expenses
Sales and marketing
1,228
1,299
2,527
2,598
Total amortization of intangibles assets
in operating expense (b)
1,228
1,299
2,527
2,598
Total amortization of intangibles assets
(b)
$
1,655
$
1,726
$
3,381
$
3,734
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Stock-based compensation recorded in the
statements of operations
Cost of revenues
Subscription
$
1,208
$
1,307
$
2,443
$
2,644
Professional services
967
1,063
1,947
2,203
Total stock-based compensation in cost of
revenue (a)
2,175
2,370
4,390
4,847
Operating expenses
Research and development
1,818
1,831
3,537
3,653
Sales and marketing
3,209
2,561
5,770
4,949
General and administrative
4,420
3,600
8,490
7,318
Total stock-based compensation in
operating expense (a)
9,447
7,992
17,797
15,920
Total stock-based compensation (a)
$
11,622
$
10,362
$
22,187
$
20,767
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Free cash flow
Net cash provided by (used in) operating
activities
$
28,885
$
12,142
$
30,990
$
(6,150
)
Purchases of property and equipment
(240
)
(80
)
(339
)
(106
)
Free cash flow
$
28,645
$
12,062
$
30,651
$
(6,256
)
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements
presented on a GAAP basis, we use non-GAAP measures of adjusted
EBITDA, gross profit, gross margin, income from operations, net
income, weighted average shares outstanding and net income per
share, which are adjusted to exclude stock-based compensation
expense, amortization of intangible assets, depreciation of fixed
assets, amortization of debt issuance costs, loss on extinguishment
of debt, and include dilutive shares where applicable. We believe
these adjustments are appropriate to enhance an overall
understanding of our past financial performance and also our
prospects for the future. These adjustments to our current period
GAAP results are made with the intent of providing both management
and investors a more complete understanding of our underlying
operating results and trends and our marketplace performance. The
non-GAAP results are an indication of our baseline performance that
are considered by management for the purpose of making operational
decisions. In addition, these non-GAAP results are the primary
indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for operating loss, net loss or basic and diluted net
loss per share prepared in accordance with generally accepted
accounting principles in the United States. Non-GAAP financial
measures are not based on a comprehensive set of accounting rules
or principles and are subject to limitations.
While a large component of our expenses incurred in certain
periods, we believe investors may want to exclude the effects of
these items in order to compare our financial performance with that
of other companies and between time periods:
(a) Stock-based compensation is a non-cash expense accounted for
in accordance with FASB ASC Topic 718. We believe that the
exclusion of stock-based compensation expense provides for a better
comparison of our operating results to prior periods and to our
peer companies.
(b) Amortization of intangible assets resulted principally from
acquisitions. Intangible asset amortization is a non-cash item. As
such, we believe exclusion of these expenses provides for a better
comparison of our operating results to prior periods and to our
peer companies.
(c) Amortization of debt issuance costs. We believe exclusion of
these expenses provides for a better comparison of our operating
results to prior periods and to our peer companies.
(d) The Company utilized a federal rate plus a net state rate
that excluded the impact of NOLs and valuation allowances to
calculate its non-GAAP blended statutory rate of 28% for the three
and the six months ended March 31, 2024, and 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240504139593/en/
Investor Relations Contact: Carolyn Bass
investorrelations@modeln.com
Media Contact: BLASTmedia Press@modeln.com
Model N (NYSE:MODN)
過去 株価チャート
から 12 2024 まで 1 2025
Model N (NYSE:MODN)
過去 株価チャート
から 1 2024 まで 1 2025
