ReachLocal, Inc. (NASDAQ:RLOC), a leader in powering online
marketing for local businesses, today reported financial results
for the first quarter of 2016.
“ReachLocal continues to make measurable progress building and
sustaining a profitable business model. Our commitment to
operational efficiency has driven our fourth consecutive quarter of
positive Adjusted EBITDA,” said Sharon Rowlands, chief executive
officer. “Our second quarter guidance indicates that we
believe we are making progress towards revenue growth and we are
also encouraged by our continued product-line expansion, which we
expect to provide us with strong cross-selling opportunities moving
forward.”
Quarterly Results at a Glance
(Table amounts in 000’s except key metrics and per share
amounts)
|
Q1
2016 |
Q1
2015 |
Revenue |
$ |
78,709 |
|
$ |
99,563 |
|
Net Loss |
$ |
(6,152 |
) |
$ |
(12,782 |
) |
Net Loss per Diluted Share |
$ |
(0.21 |
) |
$ |
(0.44 |
) |
Non-GAAP Net Loss |
$ |
(3,664 |
) |
$ |
(10,164 |
) |
Non-GAAP Net Loss per Diluted Share |
$ |
(0.12 |
) |
$ |
(0.35 |
) |
Adjusted EBITDA |
$ |
3,453 |
|
$ |
(3,785 |
) |
Cash Flow from Operating Activities, Continuing
Operations |
$ |
(3,399 |
) |
$ |
(4,530 |
) |
Cash Flow from Operating Activities |
$ |
(3,399 |
) |
$ |
(4,589 |
) |
|
|
|
Q1
2016 |
Q1
2015 |
Revenue by Channel (North America): |
|
|
Direct Local |
$ |
41,235 |
|
$ |
45,926 |
|
National Brands, Agencies and Resellers
(NBAR) |
$ |
14,337 |
|
$ |
17,573 |
|
|
|
|
Revenue by Channel (International): |
|
|
Direct Local |
$ |
19,524 |
|
$ |
32,809 |
|
National Brands, Agencies and Resellers
(NBAR) |
$ |
3,613 |
|
$ |
3,255 |
|
|
|
|
|
|
|
Key Metrics (at Period End): |
|
|
Active Clients |
|
16,400 |
|
|
20,200 |
|
Active Product Units |
|
27,200 |
|
|
30,700 |
|
Business Outlook
The Company’s outlook for the second quarter of 2016 is as
follows:
- Revenue in the range of $79 to $81 million.
- Adjusted EBITDA in the range of $3.5 to $4.5 million.
Conference Call and Webcast Information
The ReachLocal first quarter 2016 results teleconference and
webcast is scheduled to begin at 2:00 p.m., Pacific Time on
Tuesday, May 3, 2016. To participate on the live call, analysts and
investors should dial 1-888-455-2296, or outside the U.S.
719-325-2472, at least 10 minutes prior to the call. ReachLocal
will also offer a live and archived webcast of the conference call,
accessible from the “Investors” section of the Company’s website at
www.reachlocal.com.
Use of Non-GAAP Measures
ReachLocal management evaluates and makes operating decisions
using various financial and operational metrics. In addition
to the Company’s GAAP results, management also considers non-GAAP
measures of non-GAAP net income (loss), non-GAAP net income (loss)
per share, and Adjusted EBITDA. Management believes that
these non-GAAP measures provide useful information about the
Company’s core operating results and thus are appropriate to
enhance the overall understanding of the Company’s past financial
performance and its prospects for the future. The attached tables
provide a reconciliation of these non-GAAP financial measures with
the most directly comparable GAAP financial measures.
Management also tracks and reports Active Clients and Active
Product Units, as management believes that these metrics are
important gauges of the progress of the Company’s performance.
Non-GAAP net income is defined as net income (loss) from
continuing operations before (a) stock-based compensation related
expense (including the related adjustment to amortization of
capitalized software development costs) and (b) acquisition related
costs. Adjusted EBITDA is defined as net income (loss) from
continuing operations before interest, income taxes, depreciation
and amortization expenses, excluding, when applicable, stock-based
compensation, the effects of accounting for business combinations
(including any impairment of acquired intangibles and goodwill),
restructuring charges, and other non-operating income or
expense.
Acquisition Related Costs: Acquisition related costs,
including the amortization and any impairment of acquired
intangibles and goodwill and the deferred cash consideration for
the SMB:LIVE acquisition, are excluded from the non-GAAP operating
results as these are non-recurring charges which the Company would
not have incurred as part of continuing operations.
Each of these non-GAAP measures, while having utility, also has
limitations as an analytical tool, and should not be considered in
isolation or as a substitute for analysis of the Company’s results
as reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect the Company’s cash
expenditures for capital equipment or other contractual
commitments;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized may have to be replaced
in the future, and Adjusted EBITDA does not reflect capital
expenditure requirements for such replacements;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, the Company’s working capital needs;
- Adjusted EBITDA and non-GAAP net income (loss) do not consider
the potentially dilutive impact of issuing equity-based
compensation to the Company’s management and other employees;
- Adjusted EBITDA does not reflect the potentially significant
interest expense or the cash requirements necessary to service
interest or principal payments on indebtedness that the Company may
incur in the future;
- Adjusted EBITDA does not reflect income and expense items that
relate to the Company’s financing and investing activities, any of
which could significantly affect the Company’s results of
operations or be a significant use of cash;
- Adjusted EBITDA and non-GAAP net income (loss) do not reflect
costs or expenses associated with accounting for business
combinations;
- Adjusted EBITDA does not reflect certain tax payments that may
represent a reduction in cash available to the Company; and
- Other companies, including companies in the same industry,
calculate Adjusted EBITDA and non-GAAP net income (loss) measures
differently, which reduces their usefulness as a comparative
measure.
Adjusted EBITDA is not intended to replace operating income
(loss), net income (loss) and other measures of financial
performance reported in accordance with GAAP. Rather, Adjusted
EBITDA is a measure of operating performance that may be considered
in addition to those measures. Because of these limitations,
Adjusted EBITDA should not be considered as a measure of
discretionary cash available to the Company to invest in the growth
of the business.
Active Clients is a number the Company calculates to approximate
the number of clients directly served through our Direct Local
channel as well as clients served through our National Brands,
Agencies and Resellers channel. We calculate Active Clients by
adjusting the number of Active Product Units to combine clients
with more than one Active Product Unit as a single Active Client.
Clients with more than one location are generally reflected as
multiple Active Clients. Because this number includes clients
served through the National Brands, Agencies and Resellers channel,
Active Clients includes entities with which we do not have a direct
client relationship. Numbers are rounded to the nearest
hundred.
Active Product Units is a number we calculate to approximate the
number of individual products, licenses or services we are
providing to Active Clients. For example, if we were performing
both ReachSearch and ReachDisplay campaigns for a client who also
licenses ReachEdge, we consider that three Active Product Units.
Similarly, if a client purchases ReachSearch campaigns for two
different products or purposes, we consider that two Active Product
Units. Numbers are rounded to the nearest hundred.
Caution Concerning Forward-Looking
Statements
Statements in this press release regarding the Company’s outlook
for future periods and the quotes from management constitute
“forward-looking” statements within the meaning of the Securities
Exchange Act of 1934. These statements reflect the Company’s
current views about future events and involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, levels of activity, performance or achievement to
materially differ from those expressed or implied by the
forward-looking statements. Actual events or results could
differ materially from those expressed or implied by these
forward-looking statements as a result of various factors,
including: (i) the Company’s ability to increase productivity
of its sales operations; (ii) the Company’s ability to obtain the
cost savings contemplated by its cost reduction initiatives and
maintain sufficient liquidity; (iii) the Company’s ability to
purchase media and receive rebates from Google, Yahoo! and
Microsoft under commercially reasonable terms; (iv) the Company’s
ability to recruit, train and retain its salespeople; (v) the
Company’s ability to attract and retain customers and compete with
a wide range of competitors on both price and product offerings;
(vi) the Company’s ability to satisfy the covenants under its term
loan; (vii) the availability of banking and payment processing
services from financial services providers; (viii) the Company’s
ability to manage its international operations; (ix) the Company’s
ability to successfully develop and offer new products and services
in the highly competitive online advertising industry; (x) the
impact of worldwide economic conditions, including the resulting
effect on advertising budgets; and (xi) the Company’s ability to
comply with government regulation affecting our business, including
regulations or policies governing consumer privacy. More
information about these factors and other potential factors that
could affect the Company's business and financial results is
contained in its Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q, and Current Reports on Form 8-K. The Company does not
intend, and undertakes no duty, to update this information to
reflect future events or circumstances.
About ReachLocal, Inc.
ReachLocal, Inc. (NASDAQ:RLOC) helps local
businesses grow and operate their business better with leading
technology and expert service for our clients’ lead generation and
conversion. ReachLocal is headquartered in Woodland
Hills, Calif. and operates in four
regions: Asia-Pacific, Europe, Latin
America and North America.
For more information please visit ReachLocal at
www.reachlocal.com, follow us at www.reachlocal.com/social or email
info@reachlocal.com.
REACHLOCAL,
INC. |
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
(in thousands, except
per share data) |
|
|
|
|
March 31, |
|
December 31, |
|
|
2016 |
|
|
|
2015 |
|
Assets |
|
|
|
Current
Assets: |
|
|
|
Cash and cash
equivalents |
$ |
13,001 |
|
|
$ |
18,833 |
|
Short-term investments |
|
130 |
|
|
|
359 |
|
Accounts receivable, net |
|
6,720 |
|
|
|
6,278 |
|
Prepaid expenses and other current
assets |
|
5,768 |
|
|
|
8,296 |
|
Total current assets |
|
25,619 |
|
|
|
33,766 |
|
|
|
|
|
Property
and equipment, net |
|
11,664 |
|
|
|
13,550 |
|
Capitalized
software development costs, net |
|
20,159 |
|
|
|
20,691 |
|
Restricted
cash- term loan |
|
15,000 |
|
|
|
15,000 |
|
Restricted
cash |
|
3,670 |
|
|
|
3,502 |
|
Intangible
assets, net |
|
3,776 |
|
|
|
4,011 |
|
Non-marketable investments |
|
9,000 |
|
|
|
9,000 |
|
Other
assets |
|
2,594 |
|
|
|
2,547 |
|
Goodwill |
|
20,148 |
|
|
|
20,129 |
|
Total assets |
$ |
111,630 |
|
|
$ |
122,196 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts payable |
$ |
31,457 |
|
|
$ |
33,581 |
|
Accrued compensation and
benefits |
|
11,179 |
|
|
|
14,478 |
|
Deferred revenue |
|
22,488 |
|
|
|
22,985 |
|
Accrued restructuring |
|
3,829 |
|
|
|
3,329 |
|
Term loan |
|
11,407 |
|
|
|
8,352 |
|
Capital lease |
|
707 |
|
|
|
698 |
|
Other current liabilities |
|
9,055 |
|
|
|
10,166 |
|
Liabilities of discontinued
operations |
|
806 |
|
|
|
804 |
|
Total current
liabilities |
|
90,928 |
|
|
|
94,393 |
|
|
|
|
|
Term loan |
|
13,402 |
|
|
|
16,194 |
|
Convertible notes – related
party |
|
5,000 |
|
|
|
5,000 |
|
Capital lease |
|
305 |
|
|
|
484 |
|
Deferred rent and other
liabilities |
|
8,105 |
|
|
|
8,111 |
|
Total liabilities |
|
117,740 |
|
|
|
124,182 |
|
|
|
|
|
Stockholders’ Deficit: |
|
|
|
Receivable from
stockholder |
|
(59 |
) |
|
|
(55 |
) |
Additional paid-in capital |
|
142,375 |
|
|
|
140,398 |
|
Accumulated deficit |
|
(142,236 |
) |
|
|
(136,084 |
) |
Accumulated other comprehensive
loss |
|
(6,190 |
) |
|
|
(6,245 |
) |
Total stockholders’ deficit |
|
(6,110 |
) |
|
|
(1,986 |
) |
Total liabilities and stockholders’
deficit |
$ |
111,630 |
|
|
$ |
122,196 |
|
|
|
|
|
REACHLOCAL,
INC. |
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
(in thousands, except
per share data) |
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Revenue |
$ |
78,709 |
|
|
$ |
99,563 |
|
|
Cost of revenue |
|
43,851 |
|
|
|
56,217 |
|
|
Operating expenses: |
|
|
|
|
Selling and marketing |
|
23,124 |
|
|
|
36,283 |
|
|
Product and technology |
|
6,086 |
|
|
|
7,422 |
|
|
General and administrative |
|
7,878 |
|
|
|
10,713 |
|
|
Restructuring charges |
|
2,456 |
|
|
|
1,455 |
|
|
Total operating expenses |
|
39,544 |
|
|
|
55,873 |
|
|
|
|
|
|
|
Operating
loss |
|
(4,686 |
) |
|
|
(12,527 |
) |
|
Loss on deconsolidation of
subsidiaries, net |
|
(72 |
) |
|
|
- |
|
|
Interest expense |
|
(1,115 |
) |
|
|
(75 |
) |
|
Other expense, net |
|
(12 |
) |
|
|
(81 |
) |
|
Loss before
income taxes |
|
(5,885 |
) |
|
|
(12,683 |
) |
|
Income tax provision |
|
267 |
|
|
|
99 |
|
|
Net
loss |
$ |
(6,152 |
) |
|
$ |
(12,782 |
) |
|
|
|
|
|
|
Net loss
per share: |
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.21 |
) |
|
$ |
(0.44 |
) |
|
|
|
|
|
|
Weighted
average common shares used in the computation of net loss per
share: |
|
|
|
|
Basic and diluted |
|
29,808 |
|
|
|
29,070 |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation, net of capitalization, and depreciation and
amortization included in above line items: |
|
|
|
|
|
Stock-based
compensation: |
|
|
|
|
Cost of revenue |
$ |
50 |
|
|
$ |
156 |
|
|
Selling and
marketing |
|
201 |
|
|
|
482 |
|
|
Product and
technology |
|
62 |
|
|
|
168 |
|
|
General and
administrative |
|
827 |
|
|
|
1,340 |
|
|
|
$ |
1,140 |
|
|
$ |
2,146 |
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
Cost of revenue |
$ |
159 |
|
|
$ |
132 |
|
|
Selling and
marketing |
|
563 |
|
|
|
833 |
|
|
Product and
technology |
|
3,274 |
|
|
|
3,707 |
|
|
General and
administrative |
|
537 |
|
|
|
462 |
|
|
|
$ |
4,533 |
|
|
$ |
5,134 |
|
|
|
|
|
|
|
REACHLOCAL,
INC. |
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
(in thousands, except
per share data) |
|
|
|
|
Three Months Ended
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
Cash flows
from operating activities: |
|
|
|
Loss from continuing
operations |
$ |
(6,152 |
) |
|
$ |
(12,782 |
) |
Adjustments to reconcile loss from
continuing operations to net cash used in operating
activities: |
|
|
|
Depreciation and
amortization |
|
4,533 |
|
|
|
5,134 |
|
Stock-based compensation |
|
1,140 |
|
|
|
2,146 |
|
Restructuring charges |
|
2,456 |
|
|
|
1,455 |
|
Loss on deconsolidation of
subsidiary |
|
72 |
|
|
|
- |
|
(Gain) loss on disposal of fixed
assets |
|
(4 |
) |
|
|
161 |
|
Provision for doubtful
accounts |
|
384 |
|
|
|
78 |
|
Non-cash interest expense, net |
|
289 |
|
|
|
2 |
|
Changes in operating assets and
liabilities: |
|
|
|
Accounts receivable |
|
(714 |
) |
|
|
2,069 |
|
Prepaid expenses and other current
assets |
|
2,329 |
|
|
|
(449 |
) |
Other assets |
|
4 |
|
|
|
(498 |
) |
Accounts payable |
|
(2,549 |
) |
|
|
(1,838 |
) |
Accrued compensation and
benefits |
|
(2,195 |
) |
|
|
(1,765 |
) |
Deferred revenue |
|
(750 |
) |
|
|
333 |
|
Accrued restructuring |
|
(873 |
) |
|
|
(539 |
) |
Deferred rent and other
liabilities |
|
(1,369 |
) |
|
|
1,963 |
|
Net cash used in operating
activities, continuing operations |
|
(3,399 |
) |
|
|
(4,530 |
) |
Net cash used in operating
activities, discontinued operations |
|
- |
|
|
|
(59 |
) |
Net cash used in operating
activities |
|
(3,399 |
) |
|
|
(4,589 |
) |
|
|
|
|
Cash flows
from investing activities: |
|
|
|
Additions to property, equipment
and software |
|
(2,592 |
) |
|
|
(4,134 |
) |
Proceeds from sales of property and
equipment |
|
348 |
|
|
|
- |
|
Maturities of certificates of
deposits and short-term investments |
|
204 |
|
|
|
700 |
|
Purchases of certificates of
deposits and short-term investments |
|
- |
|
|
|
(42 |
) |
Net cash used in investing
activities |
|
(2,040 |
) |
|
|
(3,476 |
) |
|
|
|
|
Cash flows
from financing activities: |
|
|
|
Proceeds from exercise of stock
options |
|
- |
|
|
|
6 |
|
Principal payments on capital lease
obligations |
|
(193 |
) |
|
|
(191 |
) |
Term loan costs |
|
- |
|
|
|
(50 |
) |
Common stock repurchases |
|
(491 |
) |
|
|
(4 |
) |
Net cash used in financing
activities |
|
(684 |
) |
|
|
(239 |
) |
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
291 |
|
|
|
(1,731 |
) |
|
|
|
|
Net change
in cash and cash equivalents |
|
(5,832 |
) |
|
|
(10,035 |
) |
Cash and
cash equivalents—beginning of period |
|
18,833 |
|
|
|
43,720 |
|
Cash and
cash equivalents—end of period |
$ |
13,001 |
|
|
$ |
33,685 |
|
|
|
|
|
REACHLOCAL,
INC. |
|
|
|
|
Reconciliation
of Adjusted EBITDA to Operating Loss |
|
|
|
|
(in thousands) |
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Operating loss |
$ |
(4,686 |
) |
|
$ |
(12,527 |
) |
|
Add: |
|
|
|
|
Depreciation and
amortization |
|
4,533 |
|
|
|
5,134 |
|
|
Stock-based compensation |
|
1,140 |
|
|
|
2,146 |
|
|
Acquisition and integration
costs |
|
10 |
|
|
|
7 |
|
|
Restructuring charges |
|
2,456 |
|
|
|
1,455 |
|
|
Adjusted EBITDA (1) |
$ |
3,453 |
|
|
$ |
(3,785 |
) |
|
|
|
|
|
|
REACHLOCAL, Inc. |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Operating Results for
Three Months Ended March 31, 2016 and 2015 |
|
|
|
|
|
|
|
|
(in thousands, except
per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016 |
|
Three Months Ended March 31, 2015 |
|
|
Adjustments: |
|
|
|
Adjustments: |
|
|
|
Stock-based |
|
|
|
|
|
Stock-based |
|
|
|
|
GAAP |
Compensation |
Acquisition |
Restructuring |
Non-GAAP |
|
GAAP |
Compensation |
Acquisition |
Restructuring |
Non-GAAP |
|
Operating Results |
Related |
Related |
Related |
Operating |
|
Operating Results |
Related |
Related |
Related |
Operating |
|
"As Reported" |
Expense (2) |
Costs (3) |
Costs (4) |
Results |
|
"As Reported" |
Expense (2) |
Costs (3) |
Costs (4) |
Results |
Revenue |
$ |
78,709 |
|
|
- |
|
|
- |
|
|
- |
|
$ |
78,709 |
|
|
$ |
99,563 |
|
|
- |
|
|
- |
|
|
- |
|
$ |
99,563 |
|
Cost of
revenue |
|
43,851 |
|
|
(50 |
) |
|
- |
|
|
- |
|
|
43,801 |
|
|
|
56,217 |
|
|
(156 |
) |
|
- |
|
|
- |
|
|
56,061 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
23,124 |
|
|
(201 |
) |
|
- |
|
|
- |
|
|
22,923 |
|
|
|
36,283 |
|
|
(482 |
) |
|
- |
|
|
- |
|
|
35,801 |
|
Product and
technology |
|
6,086 |
|
|
(191 |
) |
|
(158 |
) |
|
- |
|
|
5,737 |
|
|
|
7,422 |
|
|
(279 |
) |
|
(372 |
) |
|
- |
|
|
6,771 |
|
General and
administrative |
|
7,878 |
|
|
(832 |
) |
|
(92 |
) |
|
- |
|
|
6,954 |
|
|
|
10,713 |
|
|
(1,345 |
) |
|
(100 |
) |
|
- |
|
|
9,268 |
|
Restructuring
charges |
|
2,456 |
|
|
- |
|
|
- |
|
|
(2,456 |
) |
|
- |
|
|
|
1,455 |
|
|
- |
|
|
- |
|
|
(1,455 |
) |
|
- |
|
Total
operating expenses |
|
39,544 |
|
|
(1,224 |
) |
|
(250 |
) |
|
(2,456 |
) |
|
35,614 |
|
|
|
55,873 |
|
|
(2,106 |
) |
|
(472 |
) |
|
(1,455 |
) |
|
51,840 |
|
Operating income
(loss) |
|
(4,686 |
) |
|
1,274 |
|
|
250 |
|
|
2,456 |
|
|
(706 |
) |
|
|
(12,527 |
) |
|
2,262 |
|
|
472 |
|
|
1,455 |
|
|
(8,338 |
) |
Loss
on deconsolidation of subsidiaries, net |
|
(72 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(72 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Interest expense |
|
(1,115 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(1,115 |
) |
|
|
(75 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(75 |
) |
Other expense,
net |
|
(12 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(12 |
) |
|
|
(81 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(81 |
) |
Income (loss) before
income taxes |
|
(5,885 |
) |
|
1,274 |
|
|
250 |
|
|
2,456 |
|
|
(1,905 |
) |
|
|
(12,683 |
) |
|
2,262 |
|
|
472 |
|
|
1,455 |
|
|
(8,494 |
) |
Income tax
provision (5) |
|
267 |
|
|
477 |
|
|
94 |
|
|
921 |
|
|
1,759 |
|
|
|
99 |
|
|
848 |
|
|
177 |
|
|
546 |
|
|
1,670 |
|
Net Income (loss) |
$ |
(6,152 |
) |
$ |
797 |
|
$ |
156 |
|
$ |
1,535 |
|
$ |
(3,664 |
) |
|
$ |
(12,782 |
) |
|
1,414 |
|
|
295 |
|
|
909 |
|
$ |
(10,164 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss per share: |
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted |
$ |
(0.21 |
) |
|
|
|
$ |
(0.12 |
) |
|
$ |
(0.44 |
) |
|
|
|
$ |
(0.35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
29,808 |
|
|
|
|
|
29,808 |
|
|
|
29,070 |
|
|
|
|
|
29,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REACHLOCAL,
INC. |
|
|
|
|
|
Reconciliation
of GAAP to Constant Currency Revenue |
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
Three Months Ended |
|
|
|
March
31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
North American GAAP
Revenue |
$ |
55,572 |
|
|
$ |
63,499 |
|
|
|
Constant Currency
Adjustment |
|
253 |
|
|
|
- |
|
|
|
North American Revenue at
Constant Currency (6) |
$ |
55,825 |
|
|
$ |
63,499 |
|
|
|
|
|
|
|
|
|
As Reported Growth
Rates |
|
(12.5 |
%) |
|
|
(17.6 |
%) |
|
|
Constant Currency
Growth Rates |
|
(12.1 |
%) |
|
|
(17.2 |
%) |
|
|
|
|
|
|
|
|
International GAAP
Revenue |
$ |
23,137 |
|
|
$ |
36,064 |
|
|
|
Constant Currency
Adjustment |
|
1,916 |
|
|
|
- |
|
|
|
International Revenue at
Constant Currency (6) |
$ |
25,053 |
|
|
$ |
36,064 |
|
|
|
|
|
|
|
|
|
As Reported Growth
Rates |
|
(35.8 |
%) |
|
|
(24.3 |
%) |
|
|
Constant Currency
Growth Rates |
|
(30.5 |
%) |
|
|
(13.7 |
%) |
|
|
|
|
|
|
|
|
Consolidated GAAP
Revenue |
$ |
78,709 |
|
|
$ |
99,563 |
|
|
|
Constant Currency
Adjustment |
|
2,169 |
|
|
|
- |
|
|
|
Consolidated Revenue at
Constant Currency (6) |
$ |
80,878 |
|
|
$ |
99,563 |
|
|
|
|
|
|
|
|
|
As Reported Growth
Rates |
|
(20.9 |
%) |
|
|
(20.2 |
%) |
|
|
Constant Currency
Growth Rates |
|
(18.8 |
%) |
|
|
(16.0 |
%) |
|
|
|
|
|
|
|
|
Footnotes |
(1)
Adjusted EBITDA is defined as net income (loss) from continuing
operations before interest, income taxes, depreciation and
amortization expenses, excluding, when applicable, stock-based
compensation, the effects of accounting for business combinations
(including any impairment of acquired intangibles and goodwill),
restructuring charges, and other non-operating income or
expense. |
(2)
Stock-based Compensation Related Expense: Includes
stock-based compensation expense and the related adjustment to
amortization of capitalized software development costs. |
(3)
Acquisition Related Costs, including the amortization and any
impairment of acquired intangibles and goodwill, are excluded from
the non-GAAP operating results as these are non-recurring charges
which the Company would not have incurred as part of continuing
operations. |
(4)
Restructuring Related Costs are excluded from the non-GAAP
operating results as these are non-recurring charges with the
Company would not have incurred as part of continuing
operations. |
(5) The income tax
provision (benefit) for the Non-GAAP adjustments is estimated using
the effective statutory rate for those jurisdictions. |
(6) Constant currency
revenues are determined by recalculating net revenues denominated
in currencies other than U.S. Dollars in the current fiscal period
using average exchange rates for that particular currency during
the corresponding financial period of the prior year. The company
uses this non-GAAP measure to evaluate performance on a comparable
basis excluding the impact of foreign currency fluctuations. Where
constant currency revenue is presented for a period longer than one
fiscal quarter, it is computed as the sum of the amount separately
calculated for each quarter during that period. |
|
Investor Relations:
Alex Wellins
The Blueshirt Group
(415) 217-5861
alex@blueshirtgroup.com
Media Contact:
Amber Seikaly
Vice President, Marketing and Communications
(214) 294-0242
amber.seikaly@reachlocal.com
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