AVG Announces Third Quarter 2015 Financial Results
Paid users surpass 20 million; Subscription-based revenue grows 28 percent over last year
Paid users surpass 20 million; Subscription-based revenue grows 28 percent over last year
AMSTERDAM, Nov. 4, 2015 /PRNewswire/ -- AVG® Technologies N.V. (NYSE: AVG), the online security company™ for more than 200 million monthly active users, today reported results for the third quarter ended September 30, 2015.
Third quarter 2015 highlights
Third quarter 2015 financial results
Revenue for the third quarter of 2015 grew 17 percent to $108.2 million, compared with $92.3 million in the third quarter of 2014. Non-GAAP net income for the quarter, which includes $3.8 million in investments being made to enhance the Company's internal financial controls and procedures, was $22.2 million, or $0.42 per diluted ordinary share. This compares with non-GAAP net income of $29.4 million, or $0.56 per diluted ordinary share for the same period of the prior year.[1]
Excluding the previously mentioned investments, non-GAAP net income would have been $26 million, or $0.49 per diluted ordinary share. AVG has been implementing new and more robust internal controls that are commensurate with the scale and complexity of the business. The company believes it is making significant progress towards strengthening its financial controls and believes that these costs will decrease substantially by the first quarter of 2016.
Operating cash flow was $31.8 million for the quarter, compared with $18.6 million for the third quarter of last year. Non-GAAP free cash flow was $27.4 million for the quarter, compared with $16.4 million for the same period in the prior year.
GAAP net income for the third quarter was $7.9 million, or $0.14 per diluted ordinary share. This compares with GAAP net income of $18.2 million, or $0.35 per diluted ordinary share in the prior year's third quarter. Operating income was $15.7 million, compared with $23.3 million for the third quarter of 2014.
"Revenue growth in the third quarter was driven by strength in our strategic areas of focus," said Gary Kovacs, chief executive officer of AVG Technologies. "These results were achieved despite stiff foreign exchange headwinds, as well as a reduction in total platform revenue as we execute our controlled exit from the third-party search business. Our carrier-based distribution channels drove exponential annual mobile revenue growth as well as record SaaS revenue. Revenue from SMB grew 13 percent in the third quarter despite undergoing a significant restructuring of the business to improve our ability to capitalize on this large and growing opportunity. We ended the quarter with 17 million total users of Zen-enabled products, up 54 percent since the end of the second quarter."
Kovacs continued, "Looking ahead, we will continue to invest in our key focus areas of mobile, SMB, and Zen, and optimize our traditional desktop business. In search, we are seeing market dynamics that have the potential to impact this business, creating uncertainty in our search revenue expectations over the next several quarters. We believe our success in diversifying our revenue stream over the past year can mitigate some of this potential impact. We remain completely confident in our long-term growth strategy."
Financial Outlook
Based on information available as of November 4, 2015, AVG is narrowing its previous range for revenue expectations and its financial outlook for fiscal year 2015 as follows:
AVG's expectation of non-GAAP net income for fiscal year 2015 excludes share-based compensation expense, acquisition amortization and certain other adjustments, and assumes a normalized tax rate of 12.5%. For the purpose of calculating GAAP net income per diluted ordinary share and non-GAAP net income per diluted ordinary share, the Company assumes approximately 53 million weighted-average diluted ordinary shares outstanding for the full year.
The financial information presented in this press release is not audited or reviewed.
Conference Call Information
AVG will hold its quarterly conference call today at 4:30 p.m. ET/1:30 p.m. PT/ 10:30 PM CET to discuss its third quarter 2015 financial results, business highlights and outlook. The conference call may be accessed via webcast at http://investors.avg.com or using the following phone numbers and conference ID: +1 646 254 3366 (USA); +1 514 841 2154 (Canada); +44 20 3427 1905 (UK); +420 225 376 429 (Czech Republic); Conference ID: 1514257.
Live and replay versions of the webcast can be accessed via http://investors.avg.com.
Use of Non-GAAP Financial Information
This press release contains supplemental non-GAAP financial measures that are not calculated in accordance with U.S. GAAP. These non-GAAP measures provide additional information on the performance or liquidity of our business that we believe are useful for investors.
Adjusted net income, free cash flow and their related ratios are non-GAAP measures and should not be considered alternatives to the applicable U.S. GAAP measures. In particular, adjusted net income and free cash flow, and their related ratios, should not be considered as measurements of our financial performance or liquidity under U.S. GAAP, as alternatives to income, operating income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity.
Adjusted net income and free cash flow are measures of financial performance and liquidity, respectively, and have limitations as analytical tools, and should not be considered in isolation from, or as substitutes for, analysis of our results of operations, including our operating income and cash flows, as reported under U.S. GAAP. We provide these non-GAAP financial measures because we believe that such measures provide important supplemental information to management and investors about the Company's core operating results and liquidity, primarily because the non-GAAP financial measures exclude certain expenses and other amounts that management does not consider to be indicative of the Company's core operating results or business outlook or liquidity. Management uses these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, in evaluating the Company's operating performance, in planning and forecasting future periods, in making decisions regarding business operations and allocation of resources, and in comparing the Company's performance against its historical performance. Some of the limitations of adjusted net income and free cash flow and their related ratios as measures are:
Because of these limitations, investors should rely on AVG's consolidated financial statements prepared in accordance with U.S. GAAP and treat the Company's non-GAAP financial measures as supplemental information only.
For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP, please see "Reconciliation of GAAP to non-GAAP financial measures." All non-GAAP financial measures should be read in conjunction with the comparable information presented in accordance with U.S. GAAP.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those relating to an expected range of revenue, net income, EPS, non-GAAP adjusted net income and non-GAAP EPS for the fiscal year ending December 31, 2015 and/or future periods, as well as those relating to the future prospects of AVG. Words such as "expects," "expectation," "intends," "assumes," "believes" and "estimates," variations of such words and similar expressions are also intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein. Factors that could cause or contribute to such differences include but are not limited to: changes in our growth strategies; changes in our future prospects, business development, results of operations and financial condition; the impact of changes in market dynamics relating to our search business; the anticipated costs and benefits of our other acquisitions; our ability to remediate the material weaknesses and other deficiencies identified in our internal controls or IT systems; our ability to comply with our credit agreements; changes to the online and computer threat environment and the endpoint security industry; competition from local and international companies, new entrants in the market and changes to the competitive landscape; the adoption of new, or changes to existing, laws and regulations; changes in international or national tax regulations and related proposals; the assumptions underlying the calculation of our key metrics, including the number of our active users, mobile users, revenue per average active user, subscription revenue per subscriber and platform-derived revenue per thousand searches; potential effects of changes in the applicable search guidelines of our search partners; the status of, or changes to, our relationships with our partners, including Yahoo!, Google and other third parties; changes in our and our partners' responses to privacy concerns; our ability to successfully exit the third party search distribution business; our plans to launch new products and online services and monetize our full user base; the performance of our products, including AVG Zen; our ability to attract and retain active and subscription users; our ability to retain key personnel and attract new talent; our ability to adequately protect our intellectual property; our geographic expansion plans; the outcome of ongoing or any future litigation or arbitration, including litigation or arbitration relating to intellectual property rights; our legal and regulatory compliance efforts, including with respect to PCI compliance; and worldwide economic conditions and their impact on demand for our products and services. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements.
Further information on these factors and other risks that may affect the Company's business is included in filings AVG makes with the U.S. Securities and Exchange Commission (SEC) from time to time, including its Annual Report on Form 20-F, particularly under the heading "Risk Factors".
The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto to be included in the Company's reports on Form 6-K and Form 20-F. The Company's results of operations for the third quarter, ended September 30, 2015 are not necessarily indicative of the Company's operating results for any future periods.
These documents are available online from the SEC or in the Investor Relations section of the Company's website at http://investors.avg.com. Information on the AVG website is not part of this release. All forward-looking statements in this press release are based on information currently available to the Company, and AVG assumes no obligation to update these forward-looking statements in light of new information or future events.
About AVG
AVG is the online security company providing leading software and services to secure devices, data and people. AVG's award-winning technology is delivered to over 200 million monthly active users worldwide. AVG's Consumer portfolio includes internet security, performance optimization, and personal privacy and identity protection for mobile devices and desktops. The AVG Business portfolio - delivered by managed service providers, VARs and resellers - offers IT administration, control and reporting, integrated security, and mobile device management that simplify and protect businesses.
All trademarks are the property of their respective owners.
1 Non-GAAP results for the third quarter of 2015 exclude $4.1 million in share based compensation expense, $7.5 million in acquisition amortization, nil in charges associated with litigation settlements, $1.0 million in acquisition related charges, $0.9 million in charges related to the unwinding of discounts and changes in fair value and $1.2 million in charges associated with the rationalization of the Company's global operations, offset against $0.8 million in net reversals of capitalized development charges, and adjusted for impact of normalized tax rate of 12.5% as described in the Reconciliation of GAAP measures to non-GAAP measures.
AVG Technologies N.V. |
||||||
Unaudited condensed consolidated balance sheets |
||||||
(in thousands of U.S. dollars) |
||||||
December 31, |
September 30, |
|||||
2014 |
2015 |
|||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
138,907 |
$ |
144,526 |
||
Restricted cash |
1,995 |
17,861 |
||||
Trade accounts receivable, net |
35,408 |
33,775 |
||||
Inventories |
1,030 |
942 |
||||
Deferred income taxes |
21,056 |
21,527 |
||||
Prepaid expenses |
6,946 |
8,724 |
||||
Other current assets |
5,926 |
13,011 |
||||
Total current assets |
211,268 |
240,366 |
||||
Non-current restricted cash |
16,160 |
9,194 |
||||
Property and equipment, net |
18,000 |
19,977 |
||||
Deferred income taxes |
26,813 |
19,019 |
||||
Intangible assets, net |
121,835 |
111,501 |
||||
Goodwill |
245,369 |
294,320 |
||||
Investment |
160 |
660 |
||||
Other assets |
7,484 |
7,492 |
||||
Total assets |
$ |
647,089 |
$ |
702,529 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
13,603 |
$ |
7,544 |
||
Accrued compensation and benefits |
16,544 |
15,969 |
||||
Accrued expenses and other current liabilities |
53,098 |
87,595 |
||||
Current portion of long-term debt |
2,300 |
2,300 |
||||
Income taxes payable |
2,724 |
5,770 |
||||
Deferred tax liabilities |
568 |
325 |
||||
Deferred revenue |
166,815 |
164,166 |
||||
Total current liabilities |
255,652 |
283,669 |
||||
Long-term debt, less current portion |
222,625 |
221,470 |
||||
Deferred revenue, less current portion |
34,028 |
32,535 |
||||
Deferred tax liabilities |
25,613 |
27,387 |
||||
Other non-current liabilities |
31,974 |
14,954 |
||||
Total liabilities |
569,892 |
580,015 |
||||
Redeemable noncontrolling interest |
40,040 |
41,701 |
||||
Ordinary shares |
727 |
727 |
||||
Distributions in excess of capital |
(122,560) |
(116,826) |
||||
Treasury shares |
(60,858) |
(47,261) |
||||
Accumulated other comprehensive loss |
(12,814) |
(15,188) |
||||
Retained earnings |
232,662 |
259,361 |
||||
Total shareholders' equity |
37,157 |
80,813 |
||||
Total liabilities and shareholders' equity |
$ |
647,089 |
$ |
702,529 |
AVG Technologies N.V. |
||||||||||||
Unaudited condensed consolidated statements of comprehensive income |
||||||||||||
(in thousands of U.S. Dollars, except for share data and per share data) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
(in thousands of U.S. dollars) |
||||||||||||
Revenue: |
||||||||||||
Subscription |
$ |
68,619 |
$ |
87,826 |
$ |
204,134 |
$ |
257,103 |
||||
Platform-derived |
23,727 |
20,357 |
69,767 |
61,686 |
||||||||
Total revenue |
92,346 |
108,183 |
273,901 |
318,789 |
||||||||
Cost of revenue: |
||||||||||||
Subscription |
(8,388) |
(15,882) |
(25,433) |
(42,752) |
||||||||
Platform-derived |
(1,790) |
(1,172) |
(10,726) |
(3,825) |
||||||||
Total cost of revenue |
(10,178) |
(17,054) |
(36,159) |
(46,577) |
||||||||
Gross profit |
82,168 |
91,129 |
237,742 |
272,212 |
||||||||
Operating expenses: |
||||||||||||
Research and development |
(16,173) |
(22,073) |
(48,443) |
(64,839) |
||||||||
Sales and marketing |
(22,353) |
(30,898) |
(67,385) |
(93,298) |
||||||||
General and administrative |
(20,344) |
(22,459) |
(53,477) |
(64,769) |
||||||||
Total operating expenses |
(58,870) |
(75,430) |
(169,305) |
(222,906) |
||||||||
Operating income |
23,298 |
15,699 |
68,437 |
49,306 |
||||||||
Other expense, net |
(1,176) |
(4,132) |
(1,625) |
(11,482) |
||||||||
Income before income taxes and loss from investment in equity affiliate |
22,122 |
11,567 |
66,812 |
37,824 |
||||||||
Income tax provision |
(3,908) |
(3,672) |
(16,970) |
(9,464) |
||||||||
Net income |
$ |
18,214 |
$ |
7,895 |
$ |
49,842 |
$ |
28,360 |
||||
Less: Net income attributable to redeemable noncontrolling interest |
- |
(39) |
- |
(24) |
||||||||
Net income attributable to AVG Technologies N.V. |
$ |
18,214 |
$ |
7,856 |
$ |
49,842 |
$ |
28,336 |
||||
Comprehensive income |
16,585 |
7,265 |
47,697 |
25,962 |
||||||||
Less: Comprehensive income attributable to redeemable noncontrolling interest |
- |
- |
- |
- |
||||||||
Comprehensive income attributable to AVG Technologies N.V. |
$ |
16,585 |
$ |
7,265 |
$ |
47,697 |
$ |
25,962 |
||||
Earnings per share attributable to AVG Technologies N.V. ordinary shareholders: |
||||||||||||
Net income |
$ |
18,214 |
$ |
7,856 |
$ |
49,842 |
$ |
28,336 |
||||
Redeemable noncontrolling interest |
- |
(555) |
- |
(1,637) |
||||||||
Net income available to ordinary shareholders - basic |
$ |
18,214 |
$ |
7,301 |
$ |
49,842 |
$ |
26,699 |
||||
Net income available to ordinary shareholders - diluted |
$ |
18,214 |
$ |
7,301 |
$ |
49,842 |
$ |
26,699 |
||||
Earnings per share attributable to AVG Technologies N.V. Ordinary shareholders– basic |
$ |
0.35 |
$ |
0.14 |
$ |
0.95 |
$ |
0.51 |
||||
Earnings per share attributable to AVG Technologies N.V. Ordinary shareholders – diluted |
$ |
0.35 |
$ |
0.14 |
$ |
0.94 |
$ |
0.51 |
||||
Weighted-average shares outstanding – basic |
51,802,221 |
52,296,314 |
52,448,593 |
51,946,521 |
||||||||
Weighted-average shares outstanding – diluted |
52,197,056 |
53,289,900 |
52,803,987 |
52,806,581 |
AVG Technologies N.V. |
||||||||||||
Unaudited condensed consolidated statements of cash flows |
||||||||||||
(in thousands of U.S. dollars) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
OPERATING ACTIVITIES: |
||||||||||||
Net income |
$ |
18,214 |
$ |
7,895 |
$ |
49,842 |
$ |
28,360 |
||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||||||
Depreciation and amortization |
6,861 |
11,311 |
22,587 |
35,972 |
||||||||
Share-based compensation |
3,746 |
4,097 |
9,681 |
10,925 |
||||||||
Deferred income taxes |
4,563 |
4,486 |
11,572 |
5,476 |
||||||||
Change in the fair value of contingent consideration liabilities |
82 |
793 |
265 |
2,218 |
||||||||
Amortization of financing costs and loan discount |
65 |
467 |
191 |
1,337 |
||||||||
Loss (gain) on sale of property and equipment |
13 |
126 |
(26) |
41 |
||||||||
Net change in assets and liabilities, excluding effects of acquisitions and deferred revenue |
(6,289) |
5,275 |
(10,953) |
(11,264) |
||||||||
Net change in deferred revenue |
(8,654) |
(2,680) |
(9,553) |
(3,600) |
||||||||
Net cash provided by operating activities |
18,601 |
31,770 |
73,606 |
69,465 |
||||||||
INVESTING ACTIVITIES: |
||||||||||||
Purchase of property and equipment and intangible assets |
(2,164) |
(4,363) |
(8,076) |
(10,306) |
||||||||
Proceeds from sale of property and equipment |
30 |
29 |
248 |
204 |
||||||||
Cash payments for acquisitions, net of cash acquired and restricted amounts held in escrow |
- |
- |
- |
(31,512) |
||||||||
Purchase of investment in equity securities |
- |
(500) |
- |
(500) |
||||||||
Decrease (increase) in restricted cash |
1,030 |
83 |
1,205 |
(9,255) |
||||||||
Net cash used in investing activities |
(1,104) |
(4,751) |
(6,623) |
(51,369) |
||||||||
FINANCING ACTIVITIES: |
||||||||||||
Payment of contingent consideration |
- |
- |
- |
(21,174) |
||||||||
Payment of capitalized lease obligation |
- |
(135) |
- |
(403) |
||||||||
Debt issuance costs |
- |
(92) |
- |
(388) |
||||||||
Repayments of principal on current credit agreement |
- |
(575) |
(30,000) |
(1,725) |
||||||||
Proceeds from exercise of share options |
39 |
1,528 |
1,896 |
10,809 |
||||||||
Excess tax benefit |
- |
110 |
- |
339 |
||||||||
Repurchases of share rights and options from employees |
- |
- |
(1,460) |
- |
||||||||
Repurchase of own shares |
(18,912) |
- |
(35,334) |
- |
||||||||
Net cash used in financing activities |
(18,873) |
836 |
(64,898) |
(12,542) |
||||||||
Effect of exchange rate fluctuations on cash and cash equivalents |
268 |
(517) |
(445) |
65 |
||||||||
Change in cash and cash equivalents |
(1,108) |
27,338 |
1,640 |
5,619 |
||||||||
Beginning cash and cash equivalents |
45,097 |
117,188 |
42,349 |
138,907 |
||||||||
Ending cash and cash equivalents |
$ |
43,989 |
$ |
144,526 |
$ |
43,989 |
$ |
144,526 |
||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Supplemental cash flow disclosures: |
||||||||||||
Income taxes (paid)/received |
$ |
(2,712) |
$ |
575 |
$ |
(8,057) |
$ |
(5,793) |
||||
Interest paid |
$ |
(144) |
$ |
(3,423) |
$ |
(525) |
$ |
(12,866) |
||||
Supplemental non-cash flow disclosures: |
||||||||||||
Deferred purchase consideration paid from escrow |
$ |
- |
$ |
- |
$ |
- |
$ |
(355) |
||||
Non-cash purchase of property and equipment |
$ |
- |
$ |
3,223 |
$ |
- |
$ |
3,223 |
AVG Technologies N.V. |
||||||||||||
Reconciliation of GAAP measures to non-GAAP measures |
||||||||||||
(in thousands of U.S. dollars) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Gross profit |
$ |
82,168 |
$ |
91,129 |
$ |
237,742 |
$ |
272,212 |
||||
Add back: |
||||||||||||
- Share-based compensation |
25 |
49 |
39 |
108 |
||||||||
- Acquisition amortization(1) |
1,757 |
2,537 |
7,151 |
7,398 |
||||||||
- Other adjustments(2) |
- |
37 |
- |
149 |
||||||||
Non-GAAP adjusted gross profit |
$ |
83,950 |
$ |
93,752 |
$ |
244,932 |
$ |
279,867 |
||||
Revenue |
92,346 |
108,183 |
273,901 |
318,789 |
||||||||
Non-GAAP adjusted gross profit margin |
91% |
87% |
89% |
88% |
||||||||
Operating expenses |
$ |
(58,870) |
$ |
(75,430) |
$ |
(169,305) |
$ |
(222,906) |
||||
Less: |
||||||||||||
- Share-based compensation |
3,721 |
4,048 |
9,642 |
10,817 |
||||||||
- Acquisition amortization(1) |
1,578 |
5,001 |
4,790 |
14,009 |
||||||||
- Other adjustments(2) |
4,442 |
2,164 |
7,756 |
10,595 |
||||||||
Non-GAAP adjusted operating expenses |
$ |
(49,129) |
$ |
(64,217) |
$ |
(147,117) |
$ |
(187,485) |
||||
Operating income |
$ |
23,298 |
$ |
15,699 |
$ |
68,437 |
$ |
49,306 |
||||
Add back: |
||||||||||||
- Share-based compensation |
3,746 |
4,097 |
9,681 |
10,925 |
||||||||
- Acquisition amortization(1) |
3,335 |
7,538 |
11,941 |
21,407 |
||||||||
- Other adjustments(2) |
4,442 |
2,201 |
7,756 |
10,744 |
||||||||
Non-GAAP adjusted operating income |
$ |
34,821 |
$ |
29,535 |
$ |
97,815 |
$ |
92,382 |
||||
Revenue |
92,346 |
108,183 |
273,901 |
318,789 |
||||||||
Non-GAAP adjusted operating income margin |
38% |
27% |
36% |
29% |
AVG Technologies N.V. |
||||||||||||
Reconciliation of GAAP measures to non-GAAP measures |
||||||||||||
(in thousands of U.S. dollars) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Net income |
$ |
18,214 |
$ |
7,895 |
$ |
49,842 |
$ |
28,360 |
||||
Add back: |
||||||||||||
- Share-based compensation |
3,746 |
4,097 |
9,681 |
10,925 |
||||||||
- Acquisition amortization(1) |
3,335 |
7,538 |
11,941 |
21,407 |
||||||||
- Other adjustments(2) |
4,442 |
2,201 |
7,756 |
10,744 |
||||||||
- Provision (Benefit) for income taxes |
3,908 |
3,672 |
16,970 |
9,464 |
||||||||
Non-GAAP adjusted profit before taxes |
$ |
33,645 |
$ |
25,403 |
$ |
96,190 |
$ |
80,900 |
||||
Less: Estimated provision for income taxes(3) |
(4,206) |
(3,176) |
(12,024) |
(10,113) |
||||||||
Non-GAAP adjusted net income |
$ |
29,439 |
$ |
22,227 |
$ |
84,166 |
$ |
70,787 |
||||
Weighted-average shares outstanding - diluted (in thousands) |
52,197 |
53,290 |
52,804 |
52,807 |
||||||||
Non-GAAP adjusted net income |
29,439 |
22,227 |
84,166 |
70,787 |
||||||||
Non-GAAP diluted EPS |
$ |
0.56 |
$ |
0.42 |
$ |
1.59 |
$ |
1.34 |
||||
December 31, |
September 30, |
|||||||||||
2014 |
2015 |
|||||||||||
Cash and cash equivalents |
$ |
138,907 |
$ |
144,526 |
||||||||
Current portion of long-term debt |
(2,300) |
(2,300) |
||||||||||
Long-term debt, less current portion |
(222,625) |
(221,470) |
||||||||||
Net debt |
$ |
(86,018) |
$ |
(79,244) |
||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Net cash provided by operating activities |
$ |
18,601 |
$ |
31,770 |
$ |
73,606 |
$ |
69,465 |
||||
Less: payments for property and equipment and intangible assets |
(2,164) |
(4,363) |
(8,076) |
(10,306) |
||||||||
Free cash flow(6) |
$ |
16,437 |
$ |
27,407 |
$ |
65,530 |
$ |
59,159 |
||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Revenue |
$ |
92,346 |
$ |
108,183 |
$ |
273,901 |
$ |
318,789 |
||||
Free cash flow |
16,437 |
27,407 |
65,530 |
59,159 |
||||||||
Cash conversion |
18% |
25% |
24% |
19% |
AVG Technologies N.V. |
||||||
Reconciliation of GAAP measures to non-GAAP measures |
||||||
(in thousands of U.S. Dollars, except for users, active users and revenue per average active user data) |
||||||
Twelve months ended |
||||||
September 30, |
September 30, |
|||||
2014 |
2015 |
|||||
Total revenue (trailing 12 months) |
$ |
375,803 |
$ |
418,961 |
||
Active users at period end (in millions)(4) |
188 |
202 |
||||
Average active users (in millions)(5) |
180 |
195 |
||||
Twelve months trailing revenue per average active user |
$ |
2.08 |
$ |
2.15 |
Share-based compensation |
||||||||||||
(in thousands of U.S. dollars) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Cost of revenue |
$ |
(25) |
$ |
(49) |
$ |
(39) |
$ |
(108) |
||||
Research and development |
(900) |
(798) |
(1,696) |
(1,952) |
||||||||
Sales and marketing |
(808) |
(740) |
(1,315) |
(2,151) |
||||||||
General and administrative |
(2,013) |
(2,510) |
(6,631) |
(6,714) |
||||||||
Share-based compensation |
$ |
(3,746) |
$ |
(4,097) |
$ |
(9,681) |
$ |
(10,925) |
||||
Acquisition amortization |
||||||||||||
(in thousands of U.S. dollars) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Cost of revenue |
$ |
(1,757) |
$ |
(2,537) |
$ |
(7,151) |
$ |
(7,398) |
||||
Research and development |
(175) |
(175) |
(525) |
(525) |
||||||||
Sales and marketing |
(1,403) |
(4,804) |
(4,265) |
(13,416) |
||||||||
General and administrative |
- |
(22) |
- |
(68) |
||||||||
Acquisition amortization |
$ |
(3,335) |
$ |
(7,538) |
$ |
(11,941) |
$ |
(21,407) |
||||
Other adjustments |
||||||||||||
(in thousands of U.S. dollars) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
Cost of revenue |
$ |
- |
$ |
(37) |
$ |
- |
$ |
(149) |
||||
Research and development |
6 |
(85) |
(1,264) |
(581) |
||||||||
Sales and marketing |
(4) |
(1,012) |
(386) |
(5,087) |
||||||||
General and administrative |
(4,444) |
(1,067) |
(6,106) |
(4,927) |
||||||||
Other adjustments |
$ |
(4,442) |
$ |
(2,201) |
$ |
(7,756) |
$ |
(10,744) |
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SOURCE AVG Technologies N.V.
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