MariaDB plc (NYSE:MRDB) today filed its financial results for
the first quarter of fiscal year 2024, which ended December 31,
2023.
“Annual Recurring Revenue (ARR) is up 11% year-over-year in the
first quarter of fiscal year 2024 coupled with a 77% improvement in
Adjusted EBITDA loss of $2.7 million versus the prior fiscal year
first quarter loss of $11.6 million,” said Paul O’Brien, CEO at
MariaDB plc. “This is a result of the measures we have taken over
the last few months to discontinue certain products and focus on
our core MariaDB Enterprise Server product, as well as an overall
company-wide effort to reduce spending.” The Net Loss for the first
quarter was $8.8 million, an improvement of $3.9 million as
compared to a Net Loss of $12.7 million in the prior period.
The financial results can be found in the Quarterly Report Form
10-Q, which is available on the Securities & Exchange
Commission’s (SEC’s) website at https://www.sec.gov and on
MariaDB’s Investor Relations website at
https://investors.mariadb.com under Financials.
About MariaDB
MariaDB is a new generation database company whose products are
used by companies big and small, reaching more than a billion users
through Linux distributions and have been downloaded over one
billion times. Deployed in minutes and maintained with ease,
leveraging cloud automation, MariaDB database products are
engineered to support any workload, any cloud and any scale – all
while saving up to 90% of proprietary database costs. Trusted by
organizations such as Bandwidth, DigiCert, InfoArmor, Oppenheimer
and Samsung, MariaDB’s software is the backbone of critical
services that people rely on every day. For more information,
please visit mariadb.com.
Key Business Metrics
We review a number of operating and financial metrics, including
Annual Recurring Revenue (“ARR”), to evaluate our business, measure
our performance, identify trends affecting our business, formulate
business plans and make strategic decisions.
We view ARR as an important indicator of our financial
performance and operating results given the renewable nature of our
business. ARR does not have a standardized meaning and is therefore
unlikely to be comparable to similarly titled metrics presented by
other companies. We define ARR as the annualized revenue for our
subscription customers, excluding revenue from nonrecurring
contract services (e.g., time and material consulting services).
For our annual subscription customers, we calculate ARR as the
annualized value of their subscription contracts as of the
measurement date, assuming any contract that expires during the
next 12 months is renewed on its existing terms (including
contracts for which we are negotiating a renewal). In the event
that we are still negotiating a renewal with a customer after the
expiration of their subscription, we continue to include that
revenue in ARR for a maximum period of 30 days after the
subscription end date. Our calculation of ARR is not adjusted for
the impact of any known or projected events that may cause any such
contract not to be renewed on its existing terms. Consequently, our
ARR may fluctuate within each quarter and from quarter to quarter.
This metric should be viewed independently of U.S. GAAP revenue and
does not represent U.S. GAAP revenue on an annualized basis, as it
is an operating metric that can be impacted by contract start and
end dates and renewal rates. ARR is not intended to be a
replacement for or forecast of revenue.
We define Adjusted EBITDA as net loss before (1) interest
expense, (2) income tax expense or benefit, (3) depreciation and
amortization, (4) stock-based compensation, (5) change in fair
value of warrant liabilities, (6) other income (expense), net, (7)
net costs associated with discontinued products pursuant to the
Company’s October 2023 restructuring plan, and any other one-time
non-recurring transaction amounts impacting the statement of
operations during the relevant period. We believe that Adjusted
EBITDA is useful to investors and other users of our financial
statements in evaluating our operating performance because it
provides them with an additional tool to compare business
performance across periods. Our management uses Adjusted EBITDA to
assess our operating performance and to evaluate our ongoing
operations and for internal planning and forecasting purposes. We
believe that Adjusted EBITDA, when considered together with our
GAAP financial results, provides meaningful supplemental
information regarding our operating performance by excluding
certain items that may not be indicative of our business, results
of operations or outlook, such as the impact of our capital
structure (primarily interest charges) and asset base (primarily
depreciation and amortization), items outside the control of the
management team (taxes), expenses that do not relate to our core
operations, and other non-cash items, including stock-based
compensation, unrealized gains and losses related to foreign
currency translation (included in other income (expense), net), and
change in fair value of warrant liabilities. We consider Adjusted
EBITDA to be an important measure because it helps illustrate
underlying trends in our business and our historical operating
performance on a more consistent basis.
Adjusted EBITDA Margin means Adjusted EBITDA as a percentage of
revenue determined in accordance with GAAP. We calculate Adjusted
EBITDA Margin by dividing Adjusted EBITDA by total GAAP revenue. We
believe that Adjusted EBITDA Margin helps us to better understand
MariaDB’s normalized operating performance (excluding certain
non-indicative items) in the context of GAAP revenue providing
management with important supplemental information in understanding
business efficiency and trends.
Our calculation of Adjusted EBITDA and Adjusted EBITDA Margin
may differ from how other companies, including companies in our
industry, calculate these or similarly titled non-GAAP measures,
which could reduce the usefulness of these measures as tools for
comparison. Because of these limitations, when evaluating our
performance, you should consider Adjusted EBITDA and Adjusted
EBITDA Margin alongside other financial performance measures,
including our net loss and other GAAP results.
Three Months Ended December
31,
($ in thousands)
2023
2022
Net Loss
$
(8,768
)
$
(12,696
)
Adjustments:
Interest expense
3,109
232
Income tax benefit
(167
)
(56
)
Depreciation and amortization
—
238
Stock-based compensation
13
616
Change in fair value of warrant
liabilities
(639
)
(1,731
)
Other income (expense), net
908
1,829
Restructuring and other charges
2,767
—
Gain on divestitures
(933
)
—
Costs associated with discontinued
products, net
992
—
Adjusted EBITDA
$
(2,718
)
$
(11,568
)
Net Loss Margin
(64.4)%
(99.1)%
Adjusted EBITDA Margin
(20.0)%
(90.3)%
Forward-Looking Statements
This report includes expectations, beliefs, projections,
estimates, future plans and strategies, anticipated events or
trends, and similar expressions concerning matters that are not
historical facts and that are “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act, and Section 21E of the
Exchange Act. Forward-looking statements may appear throughout this
report, including, but not limited to, Management’s Discussion and
Analysis of Financial Condition and Results of Operations”. The
forward-looking statements included in this report include
statements regarding our future financial position and operating
results, as well as our strategy, future operations, prospects,
plans and objectives of management. In some cases, you can identify
these forward-looking statements by the use of terminology such as
“outlook,” “believes,” “expects,” “potential,” “continues,” “may,”
“will,” “should,” “could,” “seeks,” “approximately,” “predicts,”
“intends,” “plans,” “estimates,” “projects,” “anticipates,” or the
negative version of these words or other comparable words or
phrases.
These forward-looking statements are based on management’s
current expectations, assumptions, hopes, beliefs, intentions,
strategies, and plans regarding future events and performance and
are based on currently available information as to the outcome and
timing of future events and performance. We caution you that these
forward-looking statements are subject to risks and uncertainties
(including those described in our filings with the Securities and
Exchange Commission, including the 10-Q filing for the first
quarter of the 2024 financial year), most of which are difficult to
predict and many of which are beyond our control, incident to our
operations.
These forward-looking statements are based on information
available as of the date of this report. While our management
believes such information forms a reasonable basis for such
statements, such information may be limited or incomplete, and such
statements should not be read to indicate that we have conducted an
exhaustive inquiry into, or review of, all potentially available
relevant information. These statements are inherently uncertain,
and investors are cautioned not to unduly rely upon these
statements.
Current expectations, forecasts and assumptions involve a number
of risks and uncertainties. Accordingly, forward-looking statements
in this report should not be relied upon as representing our views
as of any subsequent date, and we do not undertake any obligation
to update forward-looking statements to reflect events or
circumstances after the date they were made, whether as a result of
new information, future events or otherwise, except as may be
required under applicable securities laws.
Source: MariaDB #earn-news
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version on businesswire.com: https://www.businesswire.com/news/home/20240214877209/en/
Investors: ir@mariadb.com
Media: pr@mariadb.com
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