Reported Q4 revenue of $52.4 million and positive cash flow for the fiscal year

Bellevue, WA (February 5, 2018) - Apptio, Inc. (NASDAQ: APTI), the business management system of record for hybrid IT, today announced results for the fiscal fourth quarter and full year ended December 31, 2017.

"In the fourth quarter, we achieved record revenue of $52.4 million and we also exceeded our cash flow goals for the year,” said Sunny Gupta, co-founder and CEO, Apptio. “As we look into 2018, we aim to continue driving broader customer adoption as we capitalize on shifts in the IT landscape across hybrid IT, digitization and agile.”

Fourth Quarter Financial Summary

  • Subscription revenue was $42.6 million, an increase of 21% from the fourth quarter of 2016, and comprised 81% of total revenue. Services revenue was $9.8 million, an increase of 6% from the fourth quarter of 2016. Total revenue was $52.4 million, an increase of 18% from the fourth quarter of 2016.
  • GAAP gross margin was 72%, a significant improvement from the fourth quarter of 2016 GAAP gross margin of 67%.  Non-GAAP gross margin improved to 73%, as compared to non-GAAP gross margin of 69% in the fourth quarter of 2016.
  • GAAP operating margin was negative 14%, improving from GAAP operating margin of negative 17% in the fourth quarter of 2016. Non-GAAP operating margin improved to negative 5%, as compared to non-GAAP operating margin of negative 9% in the fourth quarter of 2016. 
  • GAAP net loss per basic and diluted share was $0.17 based on 41.3 million weighted average shares outstanding, compared to GAAP net loss per basic and diluted share of $0.21 based on 38.3 million weighted average shares outstanding in the fourth quarter of 2016.
  • Non-GAAP net loss per basic and diluted share was $0.06 based on 41.3 million weighted average shares outstanding, compared to non-GAAP net loss per basic and diluted share of $0.11 based on 38.3 million weighted average shares outstanding in the fourth quarter of 2016.
  • For the three months ended December 31, 2017, net cash used in operating activities was $1.5 million as compared to net cash used in operating activities of $1.8 million in the comparable period last year. Free cash flow was negative $2.3 million, as compared to negative $3.7 million in the three months ended December 31, 2016.
  • Cash, cash equivalents and marketable securities were approximately $149.0 million as of December 31, 2017.

Fiscal Year 2017 Financial Summary

  • Subscription revenue was $155.4 million, an increase of 19% from fiscal year 2016, and comprised 82% of total revenue. Services revenue was $33.1 million, an increase of 9% from fiscal year 2016. Total revenue was $188.5 million, an increase of 17% from fiscal year 2016.
  • GAAP gross margin was 69% an improvement from fiscal year 2016 GAAP gross margin of 66%.  Non-GAAP gross margin improved to 70%, as compared to non-GAAP gross margin of 67% for fiscal year 2016.
  • GAAP operating margin was negative 14%, improving from GAAP operating margin of negative 18% for fiscal year 2016. Non-GAAP operating margin improved to negative 5%, as compared to non-GAAP operating margin of negative 11% for fiscal year 2016. 
  • GAAP net loss per basic and diluted share was $0.64 based on 39.8 million weighted average shares outstanding, compared to GAAP net loss per basic and diluted share of $1.61 based on 19.6 million weighted average shares outstanding for fiscal year 2016.
  • Non-GAAP net loss per basic and diluted share was $0.24 based on 39.8 million weighted average shares outstanding, compared to non-GAAP net loss per basic and diluted share of $1.08 based on 19.6 million weighted average shares outstanding for fiscal year 2016.
  • For fiscal year ended December 31, 2017, net cash provided by operating activities was $9.4 million as compared to net cash used in operating activities of $4.0 million in the comparable period last year. Free cash flow was $5.8 million, as compared to negative $9.4 million in the fiscal year ended December 31, 2016.

Business Highlights

  • Improved our trailing twelve months subscription net dollar retention to approximately 102%.
  • Saw continued momentum with our new product packages, including IT Financial Management Foundation and Cloud Cost Management.
  • Added the most new customers in company history during 2017, and ended the year with approximately 440 total customers.
  • Completed the acquisition of Digital Fuel on February 2, 2018 to further extend our leadership in the Technology Business Management market.

Financial Outlook

Apptio provides guidance based on current market conditions and expectations and actual results may differ materially. Please refer to the company’s comments below regarding Forward Looking Statements. Apptio is initiating guidance for the first quarter ending March 31, 2018 and for the full year 2018 as follows:

First quarter of 2018:

  • Total revenue is expected to be in the range of $51.0 to $52.0 million
  • Non-GAAP operating loss between $2.5 and $3.0 million

Full year 2018:

  • Total revenue is expected to be in the range of $220 and $225 million
  • Approximately break-even Non-GAAP operating income

All forward-looking non-GAAP financial measures contained in this section titled "Financial Outlook" exclude the effects of stock-based compensation expense. Guidance reflects the February 2, 2018 acquisition of Digital Fuel and the adoption of ASC 606 on January 1, 2018. Non-GAAP operating income guidance excludes transaction expenses related to the acquisition of Digital Fuel.

 Conference Call Information

Apptio plans to host a conference call today to discuss the results. The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed by dialing 844-233-0116 (passcode: 4795737), or if outside North America, by dialing 574-990-1011 (passcode: 4795737). Individuals may also access the live teleconference from the investor relations section of the Apptio website at investors.apptio.com. A replay will be available following completion of the live broadcast.

About Apptio
Apptio (NASDAQ: APTI) is the business management system of record for hybrid IT. We transform the way IT runs its business and makes decisions. With our cloud-based applications, IT leaders manage, plan and optimize their technology investments across on-premises and cloud. With Apptio, IT leaders become strategic partners to the business by demonstrating the value of IT investments, accelerate innovation and shift their technology investments from running the business to digital innovation. Hundreds of customers choose Apptio as their business system of record for hybrid IT. For more information, please visit www.Apptio.com.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, prospects, customer demand, application adoption and our financial outlook for the first quarter of, and full year, 2018. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the U.S. Securities and Exchange Commission, including, without limitation, the Form 10-Q filed with the SEC on October 31, 2017.  All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures 
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we use the following non-GAAP financial measures: non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss per basic and diluted share, and free cash flow. In computing these measures, with the exception of free cash flow, we exclude the effects of stock-based compensation expense. We define free cash flow as net cash used in operating activities, less the purchases of property and equipment. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Results of Operations GAAP to Non-GAAP Reconciliation" included at the end of this release. We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such items that impact these measures are not within our control or cannot be reasonably predicted.


 

Apptio, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

  

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

$

42,557

 

 

$

35,066

 

 

$

155,417

 

 

$

130,061

 

Professional services

 

 

9,810

 

 

 

9,254

 

 

 

33,102

 

 

 

30,508

 

Total revenue

 

 

52,367

 

 

 

44,320

 

 

 

188,519

 

 

 

160,569

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

 

7,381

 

 

 

7,338

 

 

 

29,650

 

 

 

27,298

 

Professional services

 

 

7,304

 

 

 

7,082

 

 

 

28,903

 

 

 

26,862

 

Total cost of revenue

 

 

14,685

 

 

 

14,420

 

 

 

58,553

 

 

 

54,160

 

Gross profit

 

 

37,682

 

 

 

29,900

 

 

 

129,966

 

 

 

106,409

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

10,490

 

 

 

9,403

 

 

 

40,550

 

 

 

35,475

 

Sales and marketing

 

 

26,966

 

 

 

21,600

 

 

 

87,949

 

 

 

75,856

 

General and administrative

 

 

7,364

 

 

 

6,260

 

 

 

27,706

 

 

 

23,229

 

Total operating expenses

 

 

44,820

 

 

 

37,263

 

 

 

156,205

 

 

 

134,560

 

Loss from operations

 

 

(7,138

)

 

 

(7,363

)

 

 

(26,239

)

 

 

(28,151

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense) and other, net

 

 

393

 

 

 

213

 

 

 

1,204

 

 

 

(1,533

)

Foreign exchange loss

 

 

(198

)

 

 

(643

)

 

 

(25

)

 

 

(1,417

)

Loss before provision for income taxes

 

 

(6,943

)

 

 

(7,793

)

 

 

(25,060

)

 

 

(31,101

)

Income tax benefit (provision)

 

 

53

 

 

 

(124

)

 

 

(561

)

 

 

(452

)

Net loss

 

$

(6,890

)

 

$

(7,917

)

 

$

(25,621

)

 

$

(31,553

)

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

 

$

(0.17

)

 

$

(0.21

)

 

$

(0.64

)

 

$

(1.61

)

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

 

 

41,276

 

 

 

38,323

 

 

 

39,754

 

 

 

19,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apptio, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

  

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,069

 

 

$

42,007

 

Short-term investments

 

 

93,901

 

 

 

36,741

 

Accounts receivable, net of allowance for doubtful accounts

 

 

 

 

 

 

 

 

 of $413 and $122

 

 

68,782

 

 

 

58,587

 

Prepaid expenses and other current assets

 

 

5,079

 

 

 

5,440

 

Total current assets

 

 

222,831

 

 

 

142,775

 

Long-term assets

 

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation

 

 

 

 

 

 

 

 

of $21,924 and $17,091

 

 

10,437

 

 

 

12,827

 

Long-term investments

 

 

--

 

 

 

38,446

 

Other long-term assets

 

 

983

 

 

 

734

 

Total assets

 

$

234,251

 

 

$

194,782

 

Liabilities and Stockholders Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,598

 

 

$

3,574

 

Accrued payroll and other expenses

 

 

16,481

 

 

 

14,073

 

Deferred revenue

 

 

116,831

 

 

 

97,885

 

Deferred rent

 

 

892

 

 

 

799

 

Capital leases

 

 

21

 

 

 

43

 

Total current liabilities

 

 

139,823

 

 

 

116,374

 

Long-term liabilities

 

 

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

2,470

 

 

 

2,254

 

Deferred rent, net of current portion

 

 

3,483

 

 

 

4,360

 

Capital leases, net of current portion

 

 

26

 

 

 

51

 

Asset retirement obligation

 

 

199

 

 

 

175

 

Total liabilities

 

 

146,001

 

 

 

123,214

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Class A and Class B Common stock

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

314,301

 

 

 

271,982

 

Accumulated other comprehensive loss

 

 

(110

)

 

 

(94

)

Accumulated deficit

 

 

(225,945

)

 

 

(200,324

)

Total stockholders’ equity

 

 

88,250

 

 

 

71,568

 

Total liabilities and stockholders' equity

 

$

234,251

 

 

$

194,782

 

 

 

 

 

 

 

 

 

 

Apptio, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

  

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(6,890

)

 

$

(7,917

)

 

$

(25,621

)

 

$

(31,553

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,444

 

 

 

1,501

 

 

 

6,101

 

 

 

5,988

 

Amortization of premiums on investments

 

 

(24

)

 

 

18

 

 

 

35

 

 

 

38

 

Loss (gain) on disposal of property and equipment

 

 

(11

)

 

 

(1

)

 

 

(4

)

 

 

25

 

Stock-based compensation

 

 

4,403

 

 

 

3,557

 

 

 

16,070

 

 

 

10,459

 

Accretion of expense on line of credit fees

 

 

--

 

 

 

9

 

 

 

18

 

 

 

136

 

Loss on extinguishment of debt

 

 

--

 

 

 

--

 

 

 

--

 

 

 

722

 

Remeasurement of preferred stock warrant liability

 

 

--

 

 

 

--

 

 

 

--

 

 

 

202

 

Foreign exchange loss

 

 

198

 

 

 

412

 

 

 

25

 

 

 

412

 

Change in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(22,810

)

 

 

(16,067

)

 

 

(10,784

)

 

 

(5,765

)

Prepaid expenses and other assets

 

 

78

 

 

 

(2,946

)

 

 

3,338

 

 

 

(3,606

)

Accounts payable

 

 

1,607

 

 

 

(1,370

)

 

 

2,242

 

 

 

278

 

Accrued expenses

 

 

1,597

 

 

 

4,068

 

 

 

(428

)

 

 

1,626

 

Deferred revenue

 

 

19,091

 

 

 

16,373

 

 

 

19,163

 

 

 

16,908

 

Deferred rent

 

 

(203

)

 

 

557

 

 

 

(799

)

 

 

136

 

Net cash (used in) provided by operating activities

 

 

(1,520

)

 

 

(1,806

)

 

 

9,356

 

 

 

(3,994

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(766

)

 

 

(1,884

)

 

 

(3,603

)

 

 

(5,402

)

Proceeds from sale of equipment

 

 

13

 

 

 

--

 

 

 

24

 

 

 

--

 

Proceeds from maturities of investments

 

 

15,382

 

 

 

--

 

 

 

50,457

 

 

 

6,245

 

Purchases of investments

 

 

(3,026

)

 

 

(64,477

)

 

 

(69,222

)

 

 

(75,303

)

Payment of security deposits

 

 

(39

)

 

 

(141

)

 

 

(62

)

 

 

(184

)

Net cash provided by (used in) investing activities

 

 

11,564

 

 

 

(66,502

)

 

 

(22,406

)

 

 

(74,644

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of common stock options

 

 

12,920

 

 

 

333

 

 

 

21,868

 

 

 

1,333

 

Proceeds from purchases of stock under employee stock purchase plan

 

 

2,130

 

 

 

--

 

 

 

4,381

 

 

 

--

 

Proceeds from initial public offering

 

 

--

 

 

 

--

 

 

 

--

 

 

 

102,672

 

Payment of initial public offering costs

 

 

--

 

 

 

(1,788

)

 

 

(243

)

 

 

(2,362

)

Proceeds from long-term debt

 

 

--

 

 

 

--

 

 

 

--

 

 

 

20,000

 

Principal payments on long-term debt

 

 

--

 

 

 

--

 

 

 

--

 

 

 

(20,000

)

Payment of debt prepayment fees

 

 

--

 

 

 

--

 

 

 

--

 

 

 

(200

)

Principal payments on capital lease obligations

 

 

(11

)

 

 

(10

)

 

 

(43

)

 

 

(43

)

Payment of capitalized loan fees

 

 

--

 

 

 

--

 

 

 

--

 

 

 

(248

)

Net cash  provided by (used in) financing activities

 

 

15,039

 

 

 

(1,465

)

 

 

25,963

 

 

 

101,152

 

Foreign currency effect on cash, cash equivalents and restricted cash

 

 

707

 

 

 

68

 

 

 

149

 

 

 

(263

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

25,790

 

 

 

(69,705

)

 

 

13,062

 

 

 

22,251

 

Cash, cash equivalents and restricted cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

29,279

 

 

 

111,712

 

 

 

42,007

 

 

 

19,756

 

End of period

 

$

55,069

 

 

$

42,007

 

 

$

55,069

 

 

$

42,007

 

 

Apptio, Inc.

Results of Operations GAAP to Non-GAAP Reconciliation

(In thousands, except per share data)

(Unaudited)

 

  

Three Months Ended

 

 

Year Ended

 

 

December 31,

 

 

December 31,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Subscription

$

42,557

 

 

$

35,066

 

 

$

155,417

 

 

$

130,061

 

 Professional services

 

9,810

 

 

 

9,254

 

 

 

33,102

 

 

 

30,508

 

 Total revenue

 

52,367

 

 

 

44,320

 

 

 

188,519

 

 

 

160,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cost of revenue reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP subscription

 

7,381

 

 

 

7,338

 

 

 

29,650

 

 

 

27,298

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

(291

)

 

 

(327

)

 

 

(1,218

)

 

 

(891

)

 Non-GAAP subscription cost of revenue

 

7,090

 

 

 

7,011

 

 

 

28,432

 

 

 

26,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP professional services

 

7,304

 

 

 

7,082

 

 

 

28,903

 

 

 

26,862

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

(289

)

 

 

(263

)

 

 

(1,131

)

 

 

(820

)

 Non-GAAP professional services cost of revenue

$

7,015

 

 

$

6,819

 

 

$

27,772

 

 

$

26,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Gross profit and gross margin reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP subscription gross profit

$

35,176

 

 

$

27,728

 

 

$

125,767

 

 

$

102,763

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

291

 

 

 

327

 

 

 

1,218

 

 

 

891

 

 Non-GAAP subscription gross profit

 

35,467

 

 

 

28,055

 

 

 

126,985

 

 

 

103,654

 

 GAAP subscription gross margin

 

82.7

%

 

 

79.1

%

 

 

80.9

%

 

 

79.0

%

 Non-GAAP subscription gross margin

 

83.3

%

 

 

80.0

%

 

 

81.7

%

 

 

79.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP professional services gross profit

 

2,506

 

 

 

2,172

 

 

 

4,199

 

 

 

3,646

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

289

 

 

 

263

 

 

 

1,131

 

 

 

820

 

 Non-GAAP professional services gross profit

 

2,795

 

 

 

2,435

 

 

 

5,330

 

 

 

4,466

 

 GAAP professional services gross margin

 

25.5

%

 

 

23.5

%

 

 

12.7

%

 

 

12.0

%

 Non-GAAP professional services gross margin

 

28.5

%

 

 

26.3

%

 

 

16.1

%

 

 

14.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP gross profit

 

37,682

 

 

 

29,900

 

 

 

129,966

 

 

 

106,409

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

580

 

 

 

590

 

 

 

2,349

 

 

 

1,711

 

 Non-GAAP gross profit

$

38,262

 

 

$

30,490

 

 

$

132,315

 

 

$

108,120

 

 GAAP  gross margin

 

72.0

%

 

 

67.5

%

 

 

68.9

%

 

 

66.3

%

 Non-GAAP gross margin

 

73.1

%

 

 

68.8

%

 

 

70.2

%

 

 

67.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Operating expenses reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP research and development

$

10,490

 

 

$

9,403

 

 

$

40,550

 

 

$

35,475

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

(1,159

)

 

 

(1,012

)

 

 

(4,491

)

 

 

(2,977

)

 Non-GAAP research and development

 

9,331

 

 

 

8,391

 

 

 

36,059

 

 

 

32,498

 

 As a % of total revenue, non-GAAP

 

17.8

%

 

 

18.9

%

 

 

19.1

%

 

 

20.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP sales and marketing

 

26,966

 

 

 

21,600

 

 

 

87,949

 

 

 

75,856

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

(1,298

)

 

 

(956

)

 

 

(4,614

)

 

 

(3,132

)

 Non-GAAP sales and marketing

 

25,668

 

 

 

20,644

 

 

 

83,335

 

 

 

72,724

 

 As a % of total revenue, non-GAAP

 

49.0

%

 

 

46.6

%

 

 

44.2

%

 

 

45.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP General and administrative

 

7,364

 

 

 

6,260

 

 

 

27,706

 

 

 

23,229

 

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

(1,366

)

 

 

(999

)

 

 

(4,616

)

 

 

(2,639

)

 Non-GAAP general and administrative

 

5,998

 

 

 

5,261

 

 

 

23,090

 

 

 

20,590

 

 As a % of total revenue, non-GAAP

 

11.5

%

 

 

11.9

%

 

 

12.2

%

 

 

12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP loss from operations

 

(7,138

)

 

 

(7,363

)

 

 

(26,239

)

 

 

(28,151

)

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

4,403

 

 

 

3,557

 

 

 

16,070

 

 

 

10,459

 

 Non-GAAP loss from operations

$

(2,735

)

 

$

(3,806

)

 

$

(10,169

)

 

$

(17,692

)

 Loss from operations as a percentage of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP loss from operations

 

(13.6

%)

 

 

(16.6

%)

 

 

(13.9

%)

 

 

(17.5

%)

 Non-GAAP loss from operations

 

(5.2

%)

 

 

(8.6

%)

 

 

(5.4

%)

 

 

(11.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net loss reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP

$

(6,890

)

 

$

(7,917

)

 

$

(25,621

)

 

$

(31,553

)

 Non-GAAP adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Stock-based compensation

 

4,403

 

 

 

3,557

 

 

 

16,070

 

 

 

10,459

 

 Non-GAAP Net loss

$

(2,487

)

 

$

(4,360

)

 

$

(9,551

)

 

$

(21,094

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Basic and diluted net loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 GAAP

$

(0.17

)

 

$

(0.21

)

 

$

(0.64

)

 

$

(1.61

)

 Non-GAAP

$

(0.06

)

 

$

(0.11

)

 

$

(0.24

)

 

$

(1.08

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Shares used to compute basic and diluted GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 and Non-GAAP net loss per share

 

41,276

 

 

 

38,323

 

 

 

39,754

 

 

 

19,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apptio, Inc.

Free Cash Flow Non-GAAP Reconciliation

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

 Net cash (used in) provided by operating activities

 

$

(1,520

)

 

$

(1,806

)

 

$

9,356

 

 

$

(3,994

)

 Less: purchases of property and equipment

 

 

(766

)

 

 

(1,884

)

 

 

(3,603

)

 

 

(5,402

)

 Free cash flow

 

$

(2,286

)

 

$

(3,690

)

 

$

5,753

 

 

$

(9,396

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ir@apptio.com

 

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