Company closes transformative year with record
F2022 revenue of $197.3 million, with accelerated Enterprise and
Government ARR growth of 17%, up from 11% in prior year
Achieves second consecutive year of Rule of
40
Absolute Software Corporation (Nasdaq: ABST) (TSX: ABST) (the
“Company”), the only provider of self-healing, intelligent
security solutions, today announced its financial results for its
fourth quarter and full-year fiscal 2022 ended June 30, 2022. All
dollar figures are stated in U.S. dollars, unless otherwise
indicated.
“This year was the strongest in recent history – driven by the
strong customer demand and our team’s continued focus and execution
we are ending the year with our successful integration of NetMotion
almost complete and very well positioned for success in FY23,” said
Christy Wyatt, President and CEO of Absolute Software. “Security
and IT teams are increasingly acknowledging the need for both Cyber
Defense as well as Cyber Resilience and as a result the industry is
increasingly aware of the value in our unique intelligent,
self-healing security solutions. We intend to continue investing in
growth through FY2023, while maintaining focus on meeting the Rule
of 40 for the year.”
Fourth Quarter (“Q4”) and Full-Year Fiscal 2022 (“F2022”)
Financial Highlights
- Revenue was $52.5 million for Q4 F2022 and $197.3 million for
F2022, an increase of 65% and 63% respectively, compared to the
same period of the previous fiscal year.
- Adjusted Revenue(1) was $54.0 million for Q4 F2022 and $210.4
million for F2022, an increase of 70% and 74% respectively,
compared to the same period of the previous fiscal year. Adjusted
Revenue(1) for Q4 F2022 and F2022 increased by 13% and 15%
respectively, compared to Q4 F2021 and F2021 revenue on an as-if
combined basis without factoring in acquisition related
adjustments(2).
- Net loss was $5.3 million for Q4 F2022 and $24.5 million for
F2022, compared to net loss of $3.0 million for Q4 F2021 and net
income of $3.7 million for F2021.
- Adjusted EBITDA(1) for Q4 F2022 was $15.4 million or 29% of
Adjusted Revenue(1), compared to $8.0 million or 25% of Adjusted
Revenue for Q4 F2021. Adjusted EBITDA(1) for F2022 was $55.8
million or 27% of Adjusted Revenue(1), compared to $31.9 million or
26% of Adjusted Revenue for F2021.
- Total Annual Recurring Revenue (“ARR”)(4) as of June 30,
2022 was $209.5 million, representing an increase of 70% over the
prior year reported ARR, and an increase of 16% compared to an
as-if combined basis for June 30, 2021(3).
- The Enterprise & Government portions of Total ARR increased
by 99% year over year, and by 17% compared to an as-if combined
basis for June 30, 2021(3). The Enterprise & Government portion
represented 78% of Total ARR as of June 30, 2022.
- The Education sector portion of Total ARR increased by 12% year
over year, and by 12% compared to an as-if combined basis for June
30, 2021(3). The Education sector portion represented 22% of Total
ARR as of June 30, 2022.
- Net Dollar Retention(4) was 108% for Q4 F2022, an increase from
106% for Q4 F2021.
- Cash from operating activities was $8.7 million for Q4 F2022
and $39.8 million for F2022, a decrease of 24% and 15% respectively
from $11.4 million for Q4 F2021 and $46.8 million for F2021. Cash
was negatively impacted as a result of one of our largest partners
having a one-time migration of their payment system, which caused a
delay in payment and pushed it into the following quarter. This
payment has been subsequently received. Had it not been for that,
our cash balance would have been approximately $72 million.
- A quarterly dividend of CAD$0.08 per outstanding common share
was paid in Q4 F2022.
Notes:
(1)
Adjusted Revenue and Adjusted EBITDA are
non-IFRS measures. Refer to the “Use of non-IFRS measures and key
metrics” section of the F2022 MD&A for further discussion of
these measures and the “Results of Operations” section of this
MD&A for reconciliation to the nearest IFRS measure.
(2)
Q4 F2021 and F2021 revenue on an as-if
combined basis includes the combined revenue of Absolute and
NetMotion for Q4 F2021 and F2021, as if the acquisition of
NetMotion occurred on July 1, 2020. Revenue attributable to
Absolute Software is reported under IFRS and revenue attributable
to NetMotion is reported under US GAAP. The amount does not include
US GAAP to IFRS adjustments, which are deemed immaterial.
(3)
June 30, 2021 ARR on an as-if combined
basis combines the historical ARR of Absolute and NetMotion at June
30, 2021, as if the acquisition of NetMotion occurred on July 1,
2020.
(4)
Total ARR and Net Dollar Retention are key
metrics. Refer to the “Use of non-IFRS measures and key metrics”
section of this MD&A for further discussion of these
measures.
Selected Quarterly Information
USD millions, except percentages, number of shares, and per
share amounts
Q4 F2022
Q4 F2021
Change
YTD F2022
YTD F2021
Change
Revenue
Cloud and subscription services
$
50.0
$
29.9
67
%
$
187.5
$
112.5
67
%
Managed professional services
1.0
1.0
—
%
4.0
4.6
(13
%)
Recurring revenue(1)
$
51.0
$
30.9
65
%
$
191.5
$
117.1
64
%
Other(1)
1.5
0.9
67
%
5.8
3.7
57
%
Total revenue
$
52.5
$
31.8
65
%
$
197.3
$
120.8
63
%
Adjusted Revenue(2)
$
54.0
$
31.8
70
%
$
210.4
$
120.8
74
%
Total annual recurring revenue
(“ARR”)(3)
$
209.5
$
123.4
70
%
Net (loss) income
$
(5.3
)
$
(3.0
)
77
%
$
(24.5
)
$
3.7
(762
%)
Per share – basic
(0.10
)
(0.06
)
(0.49
)
0.08
Per share – diluted
(0.10
)
(0.06
)
(0.49
)
0.07
As a percentage of revenue
(10
%)
(9
%)
(12
%)
3
%
Adjusted EBITDA(2)
$
15.4
$
8.0
93
%
$
55.8
$
31.9
75
%
As a percentage of Adjusted Revenue
29
%
25
%
27
%
26
%
Cash from operating activities
$
8.7
$
11.4
(24
%)
$
39.8
$
46.8
(15
%)
Dividends paid
$
3.1
$
3.3
(6
%)
$
12.6
$
12.0
5
%
Per share (CAD)
0.08
0.08
0.32
0.32
As at
June 30, 2022
June 30, 2021
Change
Cash, cash equivalents, and short-term
investments
$
64.0
$
140.5
(54
%)
Total assets
555.6
232.6
139
%
Deferred revenue(4)
210.5
160.2
31
%
Total non-current financial
liabilities(5)
271.4
9.0
2916
%
Common shares outstanding (millions)
51.1
49.6
3
%
Notes:
(1)
Recurring revenue represents revenue
derived from cloud services, term-based subscription licenses,
maintenance services and recurring managed professional services.
Other revenue represents revenue derived from perpetual software
licenses, non-recurring professional services and ancillary product
lines, including consumer products.
(2)
Adjusted Revenue, Adjusted EBITDA, and
Adjusted EBITDA as a percentage of Adjusted Revenue are non-IFRS
measures. Refer to the “Use of non-IFRS measures and key metrics”
section of the F2022 MD&A for further discussion of these
measures.
(3)
Total ARR is a key metric. Refer to the
“Use of non-IFRS measures and key metrics” section of the F2022
MD&A for further discussion of this measure.
(4)
Deferred revenue includes current and
non-current amounts.
(5)
Total non-current financial liabilities
include non-current portion of lease liabilities and long-term
debt.
Q4 F2022 Business Highlights
Business and organizational developments:
- In April, we launched operations in Australia and New Zealand,
as well as expanded operations across Europe, the Middle East and
Africa (EMEA), as a result of continued demand for our intelligent,
self-healing security solutions.
- In May, we were named the winner of a Bronze Stevie® Award,
part of the 20th Annual American Business Awards®, in the category
of Company of the Year - Computer Software.
- In June, we were named the winner of two Global InfoSec Awards
by Cyber Defense Magazine (CDM) for ‘Most Comprehensive Endpoint
Security’ and ‘Market Leader - Zero Trust at RSAC.’
- In June, Absolute completed a reorganization to consolidate and
integrate NetMotion Software, Inc. (“NetMotion”) into
Absolute creating a more efficient operating structure going
forward.
Product and service highlights:
- In Q4, we reached 13.6 million active endpoints across our
global customer base – an increase of 18% year over year.
- In Q4, we added 11 mission-critical applications to our
Application Persistence™ ecosystem, including BlackBerry
CylancePROTECT® and Ivanti Neurons for Unified Endpoint Management
(UEM), enabling joint Absolute Resilience™ customers to ensure they
remain healthy and undeletable.
- In April, we delivered enhancements to our Secure Access
product portfolio, including self-healing Zero Trust Network Access
(ZTNA); a resilient deployment architecture; and expanded network
and ZTNA policy intelligence.
- In April, we launched Absolute Ransomware Response, enabling
customers with the capabilities and services needed to strengthen
ransomware preparedness and accelerate endpoint recovery.
Partner and other highlights:
- In Q4, we partnered with Lenovo to launch Lenovo Smart Lock
Services, powered by Absolute, and the Lenovo Commercial Vantage
Program.
- In April, we named Orca Tech as Australia and New Zealand
distributor, as well as appointed new sales leadership, to
accelerate growth and awareness in the region.
- In June, we announced Ericom, Utopic, and WinMagic® as new
partners leveraging Absolute Application Persistence-as-a-Service
(APaaS) to strengthen resiliency of their endpoint
applications.
- In June, we published ‘The Value of Zero Trust in a
Work-from-Anywhere World’ report, revealing the increased risk
exposure organizations face amid the shift to distributed and
hybrid work.
F2022 Business Highlights
Business and organizational developments:
- In July 2021, we completed the acquisition of NetMotion.
- In F2022, we made key executive appointments, including Ron
Fior as Interim Chief Financial Officer (CFO), Peter Chess as
General Counsel and John Herrema as Executive Vice President of
Product and Strategy. In addition, Andre Mintz joined our Board of
Directors.
- In F2022, we were featured as a Representative Vendor in the
Gartner "Market Guide for Zero Trust Network Access” (ZTNA)
report.
- In F2022, we were recognized as a winner or finalist in 13
award programs - including BC Tech’s ‘Technology Impact Awards,’
G2’s 2022 Best Software Awards, the CRN® 2022 Partner Program
Guide, and the Gartner Peer Insights Customer Choice Awards - and
were named a Leader in the G2 Summer 20022 Grid® Report for
Endpoint Management for the 10th consecutive quarter.
Product and service highlights:
- In F2022, we grew the total number of mission-critical
applications in our Application Resilience library to more than
60.
- In F2022, we launched Application Persistence-as-a-Service
(APaaS) – empowering ISVs and system manufacturers to leverage
Absolute’s firmware-embedded, self-healing device connection to
strengthen the resiliency of their mission-critical applications.
We also announced APaaS partnerships with leading ISVs including
Plurilock, Smart Eye Technology, Ericom, WinMagic, and Utopic
Software.
- In F2022, we continued to deliver a steady cadence of product
innovations, including:
- The first combined product milestone following our acquisition
of NetMotion, with the launch of the industry’s first self-healing
Zero Trust platform.
- Absolute Insights™ for Endpoints and Networks, enabling
customers to analyze critical performance metrics spanning
endpoints, users, applications, and network connections.
- Enhancements to our Secure Endpoint product portfolio,
including the Absolute DataExplorer™ tool and enhanced geolocation
capabilities.
- Critical certifications for our Secure Access product line,
including Common Criteria Evaluation Assurance Level (EAL) 4+ - the
highest certification level recognized under the Common Criteria
program for software products - and the completion of a System and
Organizational Controls (SOC 2) Type I audit.
- A new K-12 offering, Absolute Resilience for Student Devices,
enabling education IT teams with critical capabilities to better
manage and secure 1:1 device programs.
Partner and other highlights:
- In F2022, Absolute continued to be included as a key component
in the global security portfolios of Dell, Lenovo, and HP.
- Named as a strategic security partner by Lenovo in the launch
of their global ‘Everything-as-a-Service’ strategy and Lenovo Smart
Lock Services.
- Partnered with HP to launch a successful retail bundle on QVC
in North America and turn on factory activation for consumer
devices in EMEA.
- In F2022, we continued to scale our business in international
markets, appointing the Nuvias Group as distributor in the DACH
region, expanding on the previous distribution agreements in the UK
and Benelux.
- In F2022, AT&T named our Secure Access platform as a key
solution helping to power FirstNet®, the only nationwide network
built for America’s first responders.
F2023 Financial Outlook
The Company’s financial outlook for its 2023 fiscal year (July
1, 2022 – June 30, 2023) is as follows(1):
- Full-year F2023 adjusted revenue(2) is expected to be in the
range of $241.5 million to $246.5 million; this equates to a
full-year F2023 adjusted revenue growth of approximately 14.8% to
17.1% (3).
- Full-year F2023 Adjusted EBITDA(2) margin, calculated on
adjusted revenue, is expected to be in the range of 21.0% to
24.0%.
Notes:
- The Company does not provide a reconciliation of
forward-looking non-IFRS financial measures to the most directly
comparable IFRS financial measure because it is unable to predict
certain items contained in the IFRS measures without unreasonable
efforts.
- Adjusted revenue and adjusted EBITDA are non-IFRS measures.
Please refer to “Use of non-IFRS measures and key metrics” section
in this earnings release or our most recent MD&A for further
discussion of these measures.
The foregoing outlook and expectations constitute
forward-looking statements and financial outlook and are qualified
in their entirety by the “Forward-Looking Statements” cautionary
statement below. The purpose of this financial outlook is to
provide readers with disclosure regarding management’s current
reasonable expectations and plans for F2023. Readers are cautioned
that this financial outlook may not be appropriate for other
purposes.
Quarterly Dividend
On July 20, 2022, we declared a quarterly dividend of CAD$0.08
per share on our common shares, payable in cash on August 26, 2022
to shareholders of record at the close of business on August 11,
2022.
Quarterly Filings and Related Quarterly Financial
Information
Management’s Discussion and Analysis (“MD&A”) and
Consolidated Financial Statements and the notes thereto for the
fiscal period ended June 30, 2022 can be obtained today from
Absolute’s corporate website at www.absolute.com. The documents
will also be available under Absolute’s SEDAR profile at
www.sedar.com and on EDGAR at www.sec.gov. Additionally, the
Company today will publish on the Investor Relations section of its
website (www.absolute.com/company/investors/) a Q4 F2022 Earnings
Presentation and a dashboard of Selected Operating and Financial
Metrics.
Conference Call
Absolute Software will host a conference call on Tuesday, August
23, 2022 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to
discuss its results and business outlook. The call will be
accessible by dialing 1-844-763-8274 or 1-412-717-9224;
participants should ask to join the Absolute Software call. A live
audio webcast of the conference call will also be available via the
Absolute Investor Relations website.
The conference call will be archived for replay until Tuesday,
August 30, 2022. To access the archived conference call, please
dial 855-669-9658 or 1-877-344-7529 and enter the reservation code
4165976. To access the replay using an international dial-in
number, please use this link. An archived replay of the audio
webcast will be available for one year.
About Absolute Software
Absolute Software (NASDAQ: ABST) (TSX: ABST) is the only
provider of self-healing, intelligent security solutions. Embedded
in more than half a billion devices, Absolute is the only platform
offering a permanent digital connection that intelligently and
dynamically applies visibility, control and self-healing
capabilities to endpoints, applications, and network connections -
helping customers to strengthen cyber resilience against the
escalating threat of ransomware and malicious attacks. Trusted by
more than 17,000 customers, G2 recognized Absolute as a leader for
the tenth consecutive quarter in the Summer 20022 Grid® Report for
Endpoint Management and as a high performer in the G2 Grid Report
for Zero Trust Networking.
©2022 Absolute ©2022 Absolute Software Corporation. All rights
reserved. ABSOLUTE, the ABSOLUTE logo, and NETMOTION are registered
trademarks of Absolute Software Corporation. Other names or logos
mentioned herein may be the trademarks of Absolute or their
respective owners. The absence of the symbols ™️ and ® in proximity
to each trademark, or at all, herein is not a disclaimer of
ownership of the related trademark.
Use of non-IFRS measures and key metrics
Throughout this press release we refer to a number of measures
and metrics which we believe are meaningful in the assessment of
the Company’s performance. Many of these measures and metrics do
not have any standardized meaning under International Financial
Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board and are unlikely to be comparable to
similarly titled measures reported by other companies. Readers are
cautioned that the disclosure of these items is meant to add to,
and not replace, the discussion of financial results or cash flows
from operations as determined in accordance with IFRS.
The purpose of these non-IFRS measures and key metrics is to
provide supplemental information that may prove useful to readers
who wish to consider the impact of certain non-cash or
non-recurring items on the Company’s operating performance, and
assist in comparison of our operating results over historical
periods. Supplementing IFRS disclosures with non-IFRS measures
outlined below provides management with an additional view of
operational performance by excluding expenses that are not directly
related to performance in any particular period. Management uses
both IFRS and non-IFRS measures when planning, monitoring and
evaluating the Company’s performance.
These measures and metrics are as follows:
Key Metrics
a) Total ARR, Net Dollar Retention, and New
Logo ARR As the majority of our customer contracts are sold under
prepaid multi-year term licenses, there is typically a significant
lag between the timing of the invoice and the associated revenue
recognition. As a result, we focus on the annualized recurring
value of all active contracts, measured by Annual Recurring Revenue
(“ARR”), as an indicator of our future recurring revenues. ARR
includes multi-year and short-term subscriptions for cloud-based
services, as well as managed professional services and professional
services with terms greater than one year. Both multi-year
contracts and contracts with terms less than one year are
annualized by dividing the total committed contract value by the
number of months in the subscription term and then multiplying by
twelve. We believe that increases in the amount of New Logo ARR,
and improvement in our Net Dollar Retention, will accelerate the
growth of Total ARR and, in turn, our future revenues. We provide
these metrics as they are used to manage the business, however we
believe there is no similar measure under IFRS to which they would
be reconciled. Total ARR is a key metric and measures the aggregate
annualized recurring revenues of all active contracts at the end of
a reporting period, and therefore is an indicator of our future
revenue streams. Total ARR will change over a period through the
retention, attrition and expansion of existing customers and the
acquisition of new customers. Net Dollar Retention (previously “Net
ARR Retention”) is a key metric and measures the percentage
increase or decrease in Total ARR at the end of a year for
customers that comprised Total ARR at the beginning of the year.
This metric provides insight into the effectiveness of our
activities to retain and expand the ARR of our existing customers.
New Logo ARR (previously “ARR from New Customers”) is a key metric
and measures the addition to Total ARR from sales to new customers
during a period.
Non-IFRS Measures
a) Adjusted Revenue Adjusted Revenue is
defined as revenue, excluding fair value adjustments relating to
acquired deferred revenue. In connection with the acquisition of
NetMotion, NetMotion’s deferred revenue was written down to its
fair value at the acquisition date. As a result, related revenue in
the post acquisition period does not reflect the full amount of
revenue that would otherwise be recognized. We believe excluding
fair value adjustments relating to deferred revenue provides a
useful measure of the Company’s performance as it allows for
comparability across future periods, where revenue recognized would
reflect the transaction price, without acquisition-related fair
value adjustments. b) Adjusted Gross Margin and Gross Margin %
Adjusted Gross Margin is defined as gross margin, adjusted for
depreciation and amortization, share-based compensation expense,
fair value adjustments relating to acquired deferred revenue, and
non-recurring items. Adjusted Gross Margin % is defined as Adjusted
Gross Margin, as a percentage of Adjusted Revenue. c) Adjusted
Operating Expenses Adjusted Operating Expenses is defined as sales
and marketing expense, research and development expense, and
general and administrative expense, excluding depreciation and
amortization, share-based compensation expense, fair value
adjustments relating to acquired deferred commission expense,
restructuring or reorganization charges and post-retirement
benefits, and non-recurring items. d) Adjusted Earnings before
Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)
As of June 30, 2022, we have updated our definition of Adjusted
EBITDA to separately identify adjustments for acquisition and
integration costs, litigation costs and impairment losses. In prior
periods, adjustments for acquisition, integration and litigation
costs were included within ‘non-recurring items’. This change was
made to provide users with more relevant, disaggregated information
for certain costs which we believe to be outside of our core
business activities. We believe this change will result in improved
period over period comparability. There were no changes to our
Adjusted EBITDA for the current period and comparative periods as a
result of this change in definition. Adjusted EBITDA is defined as
net income before interest income or expense, income taxes,
depreciation and amortization, foreign exchange gains or losses,
share-based compensation expense, fair value adjustments relating
to acquired deferred revenue, fair value adjustments relating to
acquired deferred commission expense, restructuring or
reorganization charges and post-retirement benefits, acquisition
and integration costs, litigation costs, impairment losses, and
non-recurring items. We believe Adjusted EBITDA provides a useful
measure of the Company’s performance, as it helps illustrate
underlying trends in our business that could otherwise be masked by
the effect of the income or expenses that are not indicative of the
core operating performance of our business. Adjusted EBITDA has
limitations as an analytical tool, and it should not be considered
in isolation or as a substitute for analysis of other IFRS
financial measures. Some of the limitations of Adjusted EBITDA are
that it excludes recurring expenses for interest payments, does not
reflect the dilution that results from share-based compensation,
and does not reflect the cost to replace amortized property and
equipment and right-of-use assets. It may be calculated differently
by other companies in our industry, limiting its usefulness as a
comparative measure.
Reconciliation of non-IFRS measures from IFRS measures are
presented below.
Adjusted Revenue
(USD millions)
Q4 F2022
Q4 F2021
F2022
F2021
Revenue
$
52.5
$
31.8
$
197.3
$
120.8
Adjustments:
Fair value adjustments relating to
acquired deferred revenue
1.5
—
13.1
—
Adjusted Revenue
$
54.0
$
31.8
$
210.4
$
120.8
Adjusted Gross Margin
(USD millions)
Q4 F2022
Q4 F2021
F2022
F2021
Gross margin
$
42.8
$
27.3
$
160.5
$
104.9
Adjustments:
Depreciation and amortization(1)
2.8
0.2
11.3
0.7
Share-based compensation
0.6
0.3
2.1
1.3
Fair value adjustments relating to
acquired deferred revenue
1.5
—
13.1
—
Adjusted Gross Margin
$
47.7
$
27.8
$
187.0
$
106.9
Adjusted Gross Margin %
88
%
87
%
89
%
88
%
Adjusted Operating Expenses
(USD millions)
Q4 F2022
Q4 F2021
F2022
F2021
Total Operating Expense
$
40.7
$
32.1
$
167.7
$
99.3
Adjustments:
Depreciation and amortization(1)
(3.4
)
(1.2
)
(13.9
)
(5.1
)
Share-based compensation
(3.5
)
(2.1
)
(14.6
)
(9.1
)
Fair value adjustments relating to
acquired deferred commission
0.2
—
1.8
—
Acquisition and integration costs
(1.6
)
(9.0
)
(8.2
)
(9.0
)
Litigation costs
(0.2
)
—
(1.6
)
(1.1
)
Adjusted Operating Expense
$
32.2
$
19.8
$
131.2
$
75.0
(1)
Depreciation and amortization includes
depreciation of property and equipment, amortization of
right-of-use assets, and amortization of acquired intangible
assets.
Adjusted EBITDA
(USD millions)
Q4 F2022
Q4 F2021
F2022
F2021
Net (loss) income
$
(5.3
)
$
(3.0
)
$
(24.5
)
$
3.7
Adjustments:
Depreciation and amortization(1)
6.2
1.4
25.2
5.7
Share-based compensation
4.1
2.4
16.7
10.5
Interest expense
5.2
0.1
20.7
0.6
Foreign exchange (gain) loss
(0.1
)
0.1
0.3
0.7
Income tax (recovery) expense
2.2
(2.0
)
(3.7
)
0.6
Fair value adjustments relating to
acquired deferred revenue
1.5
—
13.1
—
Fair value adjustments relating to
acquired deferred commission
(0.2
)
—
(1.8
)
—
Acquisition and integration costs
1.6
9.0
8.2
9.0
Litigation costs
0.2
—
1.6
1.1
Adjusted EBITDA
$
15.4
$
8.0
$
55.8
$
31.9
(1)
Depreciation and amortization includes
depreciation of property and equipment, amortization of
right-of-use assets, and amortization of acquired intangible
assets.
Forward-Looking Statements
This press release contains certain forward-looking statements
and forward-looking information, as defined under applicable
securities laws, including, without limitation, the U.S. Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”), which relate to future events or
Absolute’s future business, operations, and financial performance
and condition. Forward-looking statements normally contain words
like “will”, “intend”, “anticipate”, “could”, “should”, “may”,
“might”, “expect”, “estimate”, “forecast”, “plan”, “potential”,
“project”, “assume”, “contemplate”, “believe”, “shall”,
“scheduled”, and similar terms and, within this press release,
include, without limitation: the information under the heading
“F2022 Financial Outlook”, statements regarding the NetMotion
acquisition and integration, statements regarding Absolute’s market
opportunity and ability to accelerate growth and expectations of
ARR, and any statements (express or implied) respecting: Absolute’s
future plans, strategies, and objectives, including plans,
strategies, and objectives arising out of the COVID-19 pandemic or
related to the NetMotion (as defined below) acquisition; projected
revenues, expenses, margins, and profitability; future trends,
opportunities, challenges, and growth in Absolute’s industry; the
impacts of the COVID-19 pandemic on Absolute’s business,
operations, prospects, and financial results (including, without
limitation, greater/continued remote working and/or distance
learning); the increase in volume and range of data breaches and
cyber threats; the anticipated operational, financial, and
competitive benefits, and synergies of the NetMotion acquisition;
Absolute’s ability to grow revenue by selling to new customers and
increasing subscriptions with existing customers; Absolute’s
ability to renew customers’ subscriptions; Absolute’s ability to
maintain and enhance its competitive advantages within its industry
and in certain markets; Absolute’s ability to remain compatible
with existing and new PC and other device operating systems; the
maintenance and development of Absolute’s PC OEM and other channel
partner networks; existing and new product functionality and
suitability; Absolute’s product and research and development
strategies and plans; Absolute’s business development strategies
and plans; Absolute’s privacy and data security controls; the
seasonality of future revenues and expenses; Absolute’s ability to
meet its commitments under and remain in compliance with its Term
Loan Facility (a defined below); the future availability of working
capital and any required financing; future dividend issuances or
increases; the addition and retention of key personnel; increases
to brand awareness and market penetration; future corporate, asset,
or technology acquisitions; strategies respecting intellectual
property protection and licensing; active and potential future
litigation or product liability; future dividend issuances or
increases; future fluctuations in applicable tax rates, foreign
exchange rates, and/or interest rates; the future availability of
tax credits; Absolute’s foreign operations; expenses, regulatory
obligations, and/or legal exposures as a result of its SEC
registration and Nasdaq listing; changes and planned changes to
accounting policies and standards and their respective impact on
Absolute’s financial reporting; Absolute’s environmental, social,
and governance initiatives; macroeconomic uncertainty, including
inflationary pressures and risks of economic recession; foreign
exchange fluctuations macroeconomic uncertainty, including
inflationary pressures and risks of economic recession; foreign
exchange fluctuations; the continued effectiveness of Absolute’s
accounting policies and internal controls over financial reporting;
and other aspects of Absolute’s strategies, operations or operating
results. Forward-looking statements are provided for the purpose of
presenting information about management’s current expectations and
plans relating to the future and to allow investors and others to
get a better understanding of Absolute’s anticipated financial
position, results of operations, and operating environment. Readers
are cautioned that such information may not be appropriate for
other purposes.
Forward-looking statements are not guarantees of future
performance, actions, or developments and are based on
expectations, assumptions and other factors that management
currently believes are relevant, reasonable, and appropriate in the
circumstances. The material expectations, assumptions, and other
factors used in developing the forward-looking statements set out
herein include or relate to the following, without limitation:
Absolute will be able to successfully execute its plans,
strategies, and objectives; Absolute will be able to successfully
manage cash flow, operating expenses, interest expenses, capital
expenditures, and working capital and credit, liquidity, ARR and
market risks; Absolute will be able to leverage its past, current,
and planned investments to support growth and increase
profitability; Absolute will be able to successfully manage the
impacts of COVID-19 on its business, operations, prospects, and
financial results; there will continue to be a trend toward mobile
computing and remote working and/or distance learning, in the
short, medium, and/or long-term, and resulting demand for
Absolute’s solutions; Absolute will be able to successfully
integrate NetMotion’s operations and realize the expected benefits
to Absolute and synergies from the acquisition; Absolute will
transition the NetMotion customer agreements to recurring cloud
subscriptions; the Absolute-NetMotion combined company’s financial
profile will align with Absolute’s forecasts; Absolute will be able
to implement its plans, forecasts, and other expectations with
respect to the NetMotion acquisition and realize expected
synergies; Absolute will be able to grow revenue by selling to new
customers and increasing subscriptions with existing customers at
or above the rates currently anticipated; Absolute will be able to
renew customers’ subscriptions efficiently and cost effectively;
Absolute will maintain and enhance its competitive advantages
within its industry and certain markets; Absolute will keep pace
with or outpace the growth, direction, and technological
advancement in its industry; Absolute will be able to adapt its
technology to be compatible with changes to existing and new PC and
other device operating systems; Absolute will be able to maintain
and develop its PC OEM and other channel partner networks;
Absolute’s current and future (if any) PC OEM partners will
continue to permit embedding of its firmware technology and/or
provide distribution and resale support; Absolute’s business
development strategies and plans (including, without limitation,
enhanced data intelligence, Application Persistence™, and APaaS (as
defined below)) will be successful as currently expected; Absolute
will be able to maintain or grow its sales to education customers;
Absolute’s existing and new products will function as intended and
will be suitable for the intended end users; Absolute will be able
to design, develop, and release new products, features, and
services and enhance its existing products and services; Absolute
will obtain FedRAMP (as defined below) certification and achieve
greater penetration into government markets; Absolute will be able
to protect against the improper disclosure of data it may process,
store, and/or manage; Absolute’s revenues will not become subject
to increased seasonality; Absolute will meet its commitments under
and remain in compliance with its Term Loan Facility; future
financing will be available to Absolute on favourable terms, if and
when required; Absolute will be in a financial position to issue
dividends in the future; fluctuations in applicable tax rates,
foreign exchange rates, and interest rates will not have a material
impact on Absolute; certain tax credits will remain or become
available to Absolute; Absolute will be able to attract and retain
key personnel; Absolute will be successful in its brand awareness
and other marketing initiatives; Absolute will be able to
successfully integrate businesses, intellectual property, products,
personnel, and/or technologies that it may acquire; Absolute will
be able to maintain and enhance its intellectual property
portfolio; Absolute’s protection of its intellectual property is
and will be sufficient and its technology does not and will not
materially infringe third-party intellectual property rights;
Absolute will be able to obtain any necessary third-party licenses
on favourable terms; Absolute will not become involved in material
litigation or subject to material adverse judgments, damages
awards, or regulatory sanctions; Absolute will be able to
successfully manage the additional expenses, regulatory
obligations, and legal exposures resulting from its SEC
registration and Nasdaq listing; Absolute will not face any
material unexpected costs related to product liability or
warranties; foreign jurisdictions will not impose unexpected risks;
Absolute’s environmental, social, and governance initiatives will
deliver positive outcomes; economic and market conditions
(including, without limitation, as affected by the COVID-19
pandemic) will not impose unexpected risks or challenges; and
Absolute will maintain or enhance its accounting policies and
standards and internal controls over financial reporting.
Although management believes that the forward-looking statements
herein are reasonable, actual results could be substantially
different due to the risks and uncertainties associated with and
inherent to Absolute’s business, including the following risks (as
more particularly described and referred to in the “Risk and
Uncertainties” section of Absolute’s Q4 F2022 MD&A: that
Absolute may not be able to accurately predict its rate of growth
and profitability; ARR provides no assurance that actual events
will meet the Company’s or management’s expectations; Absolute’s
dependence on PC OEMs for embedding its firmware technology;
Absolute’s reliance on its PC OEM and other distribution, resale,
and other channels; risks related to the COVID-19 pandemic and its
impact on Absolute; that Absolute may not be able to successfully
integrate NetMotion’s operations; that Absolute may be unable
implement its plans, forecasts, and other expectations for the
NetMotion acquisition as anticipated, or at all, to realize the
expected synergies from the NetMotion acquisition; that the
Absolute-NetMotion combined company will not have the projected
financial profile and will not experience the expected financial
benefits and synergies; that the NetMotion acquisition and
integration will disrupt Absolute’s business; that Absolute may be
unable to attract new customers or maintain its existing customer
base or grow or upgrade the services provided to these customers;
that customers may not renew or expand their existing commercial
relationship with Absolute; that Absolute may be unable to adapt
its technology to be compatible with new operating systems; that
Absolute’s business development activities will not advance and
deliver the benefits as currently anticipated; that changing buying
patterns in the education vertical may adversely impact Absolute’s
business; that changing contracting or fiscal policies of
government organization may adversely affect Absolute’s business
and operations; that changes in macroeconomic conditions may harm
our growth strategies and business prospects; that Absolute will
not achieve FedRAMP certification, on the timeline currently
expected or at all, which may hinder its ability to achieve greater
penetration into government markets; risks relating to the evolving
nature of the market for Absolute’s products; that Absolute’s
software services may contain errors, vulnerabilities, or defects;
that Absolute could suffer security breaches impacting the data
that Absolute processes and otherwise handles; other risks
associated with data security, privacy controls, and hacking; that
Absolute’s reputation may be damaged, and its financial results
negatively affected, if its internal networks, systems, or data are
perceived to have been compromised; that customers may expose
Absolute to potential violations of applicable privacy laws; that
Absolute’s focus on larger enterprise customers could result in
greater costs, less favourable commercial terms, and other adverse
impacts to Absolute; risks associated with any failure by Absolute
to successfully promote and protect its brands; risks associated
with cyclical business impacts on Absolute; Absolute may fail to
meet its commitments under or remain in compliance with its Term
Loan Facility, which could allow the lenders to accelerate the
repayment of the debt or seek other remedies under the Term Loan
Facility; future financing that may be required may not be
available on favourable terms; risks associated with the
competition Absolute faces within its industry; that industry data
and projections are inaccurate and unreliable; that Absolute’s
research and development efforts may not be successful; risks
resulting from interruptions or delays from third-party hosting
facilities; that Absolute’s business may suffer if it cannot
continue to protect its intellectual property rights; that Absolute
may be unable to obtain patent or other proprietary or statutory
protection for new or improved technologies or products; risks
related to Absolute’s technology incorporating certain “open
source” software; that Absolute may be unable to maintain
technology licenses from third parties; risks related to
fluctuating foreign exchange rates; that the price of Absolute’s
common shares may be subject to wide fluctuations; risks
related to Absolute’s SEC registration and Nasdaq listing; that
Absolute is reliant on its key personnel; that Absolute may be
subject to litigation or other dispute resolution from
time-to-time; that Absolute may become subject to material adverse
judgments, damages awards, or regulatory sanctions; risks related
to Absolute’s foreign operations; that Absolute may be unable to
successfully manage and/or integrate any future acquisitions; risks
related to Absolute’s amortization of revenue over the term of its
customer subscriptions including future ARR impact indicating
future potential annualized revenue impact; risks related to
Absolute’s reliance on its reseller and other partners for
billings; that Absolute may reduce or eliminate its periodic
dividend payments in the future; income tax related risks; that
Absolute may not currently have or maintain adequate insurance
coverages for the risks associated with its business; that Absolute
may become subject to product liability claims; risks related to
Absolute’s reliance on copyrights, trademarks, trade secrets, and
confidentiality procedures and similar contractual provisions;
risks related to economic, market, and political volatility and
uncertainty; and Absolute will not be able to maintain or enhance
its accounting policies and standards and internal controls over
financial reporting.. Additional material risks and uncertainties
applicable to the forward-looking statements herein include,
without limitation, unforeseen events, developments, or factors
causing any of the aforesaid expectations, assumptions, and other
factors ultimately being inaccurate or irrelevant. Many of these
factors are beyond the control of Absolute.
All forward-looking statements included in this press release
are expressly qualified in their entirety by these cautionary
statements. The forward-looking statements contained in this press
release are made as at the date hereof and Absolute undertakes no
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as may be required by
applicable securities laws.
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Financial
Position
(Unaudited)
(Expressed in thousands of United
States dollars, except number of shares)
June 30, 2022
June 30, 2021
Assets
Current assets:
Cash and cash equivalents
$
63,669
$
140,166
Short-term investments
360
360
Trade and other receivables
52,722
24,113
Income tax receivable
1,029
628
Prepaid expenses and other
9,086
5,802
Contract acquisition assets – current
9,518
8,253
136,384
179,322
Property and equipment
5,195
4,629
Right-of-use assets
9,456
9,967
Deferred income tax assets
39,428
31,339
Contract acquisition assets
6,213
6,271
Intangible assets
117,537
—
Goodwill
240,755
1,100
Other assets
650
—
$
555,618
$
232,628
Liabilities
Current liabilities:
Trade and other payables
$
32,627
$
34,116
Income tax payable
2,143
20
Lease liabilities – current
4,069
2,908
Long-term debt – current
1,632
—
Deferred revenue – current
133,852
93,303
174,323
130,347
Lease liabilities
7,210
8,960
Long-term debt
264,230
—
Deferred revenue
76,619
66,879
Deferred income tax liabilities
30,037
—
552,419
206,186
Shareholders’ Equity
Share capital
160,951
151,521
Equity reserve
51,333
46,489
Treasury shares
(264
)
(264
)
Accumulated other comprehensive (loss)
income
(207
)
188
Deficit
(208,614
)
(171,492
)
3,199
26,442
$
555,618
$
232,628
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Operations
and Comprehensive (Loss) Income
(Unaudited)
(Expressed in thousands of United
States dollars, except number of shares and per share
amounts)
Three months ended June
30,
Years ended June
30,
2022
2021
2022
2021
Revenue
$
52,527
$
31,777
$
197,311
$
120,784
Cost of revenue
9,749
4,480
36,775
15,869
Gross margin
42,778
27,297
160,536
104,915
Operating expenses
Sales and marketing
19,325
11,812
79,164
45,584
Research and development
10,826
5,935
44,775
23,264
General and administration
10,618
14,423
43,742
30,438
40,769
32,170
167,681
99,286
Operating (loss) income
2,009
(4,873
)
(7,145
)
5,629
Other (expense) income
Interest income
5
2
8
50
Interest expense
(5,260
)
(156
)
(20,703
)
(632
)
Foreign exchange gain (loss)
144
(103
)
(333
)
(690
)
(5,111
)
(257
)
(21,028
)
(1,272
)
Net (loss) income before income
taxes
(3,102
)
(5,130
)
(28,173
)
4,357
Income tax recovery (expense)
(2,235
)
2,124
3,688
(625
)
Net (loss) income
$
(5,337
)
$
(3,006
)
$
(24,485
)
$
3,732
Items that may be reclassified
subsequently to profit or loss
Unrealized (loss) gain on derivatives, net
of tax
(8
)
(273
)
(211
)
188
Foreign currency translation
(121
)
—
(184
)
—
Total comprehensive (loss)
income
$
(5,466
)
$
(3,279
)
$
(24,880
)
$
3,920
Basic net (loss) income per common
share
$
(0.10
)
$
(0.06
)
$
(0.49
)
$
0.08
Diluted net (loss) income per common
share
$
(0.10
)
$
(0.06
)
$
(0.49
)
$
0.07
Weighted average number of common shares
outstanding
Basic
51,067,421
49,533,517
50,381,336
47,131,785
Diluted
51,067,421
49,533,517
50,381,336
49,916,511
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Changes in
Shareholders’ Equity
(Unaudited)
(Expressed in thousands of United
States dollars, except number of shares)
Share Capital
Number of
Common
shares
Amount
Equity
reserve
Treasury
shares
Accumulated
Other
Comprehensive
(Loss) Income
Deficit
Total
Balance, June 30, 2020
42,535,495
$
81,890
$
38,524
$
(264
)
$
—
$
(163,212
)
$
(43,062
)
Shares issued for cash
6,272,727
69,000
—
—
—
—
69,000
Share issuance cost
—
(4,228
)
—
—
—
—
(4,228
)
Shares issued on stock option exercise
106,844
805
(149
)
—
—
—
656
Shares issued under Employee Share
Ownership Plan ("ESOP")
68,089
512
—
—
—
—
512
Shares issued under Performance and
Restricted Share Unit plan ("PRSU")
590,674
3,542
(4,781
)
—
—
—
(1,239
)
Share-based compensation
—
—
8,539
—
—
—
8,539
Cash dividends
—
—
—
—
—
(12,012
)
(12,012
)
Unrealized gain on derivatives, net of
tax
—
—
—
—
188
—
188
Tax deduction on share-based
compensation
—
—
4,356
—
—
—
4,356
Net income
—
—
—
—
—
3,732
3,732
Balance, June 30, 2021
49,573,829
$
151,521
$
46,489
$
(264
)
$
188
$
(171,492
)
$
26,442
Shares issued on stock option exercise
253,702
1,572
(198
)
—
—
—
1,374
Shares issued under ESOP
94,697
853
—
—
—
—
853
Shares issued under PRSU
1,189,541
7,441
(10,678
)
—
—
—
(3,237
)
Share-based compensation
—
—
17,555
—
—
—
17,555
Cash dividends
—
—
—
—
—
(12,637
)
(12,637
)
Unrealized loss on derivatives, net of
tax
—
—
—
—
(211
)
—
(211
)
Tax deduction on share issuance costs
—
(436
)
—
—
—
—
(436
)
Tax deduction on share based
compensation
—
—
(1,835
)
—
—
—
(1,835
)
Foreign currency translation
—
—
—
—
(184
)
—
(184
)
Net loss
—
—
—
—
—
(24,485
)
(24,485
)
Balance, June 30, 2022
51,111,769
$
160,951
$
51,333
$
(264
)
$
(207
)
$
(208,614
)
$
3,199
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Cash
Flows
(Unaudited)
(Expressed in thousands of United
States dollars)
Three months ended June
30,
Years ended June 30,
2022
2021
2022
2021
Cash from (used in):
Operating activities:
Net (loss) income
$
(5,337
)
$
(3,006
)
$
(24,485
)
$
3,732
Items not involving cash:
Depreciation of property and equipment
823
740
3,398
3,220
Amortization of right-of-use assets
928
727
3,692
2,486
Amortization of acquired intangible
assets
4,441
—
18,063
—
Amortization of contract acquisition
assets
2,649
2,912
13,804
10,980
Share-based compensation
4,097
2,406
16,677
10,359
Current and deferred income taxes
(1,738
)
(3,542
)
(10,241
)
(3,679
)
Gain on early termination of operating
leases
—
(26
)
—
(26
)
Interest
5,188
117
20,385
515
Unrealized foreign exchange (gain)
loss
(106
)
90
(41
)
654
Changes in non-cash operating working
capital:
Trade and other receivables
(13,552
)
1,308
(17,100
)
4,877
Income tax receivable
1,078
175
738
(516
)
Prepaid expenses and other
(407
)
(279
)
(3,562
)
(1,692
)
Contract acquisition assets
(3,125
)
(3,018
)
(15,011
)
(12,159
)
Trade and other payables
(4,262
)
9,348
(3,337
)
10,869
Income tax payable
1,832
—
2,011
(363
)
Deferred revenue
16,144
3,491
34,801
17,579
Cash from operating activities
8,653
11,443
39,792
46,836
Investing activities:
Purchase of property and equipment
(960
)
39
(1,829
)
(2,834
)
Lease incentive received
—
—
—
68
Proceeds from maturities of short-term
investments
—
—
—
17,027
Acquisition of NetMotion
—
—
(342,008
)
—
Cash (used in) from investing
activities
(960
)
39
(343,837
)
14,261
Financing activities:
Proceeds from public offering
—
—
—
69,000
Share issue costs
—
175
—
(5,323
)
Dividends paid
(3,109
)
(3,280
)
(12,637
)
(12,012
)
Proceeds from exercise of stock options
and ESOP
—
220
1,793
1,606
Tax remittances on share based
compensation
(2,819
)
—
(3,174
)
(1,239
)
Payment of lease liabilities
(1,117
)
(787
)
(3,991
)
(2,788
)
Proceeds from long-term debt
—
—
269,500
—
Transaction costs on long-term debt
—
—
(1,957
)
—
Principal repayment of long-term debt
(688
)
—
(2,750
)
—
Interest payment of long-term debt
(4,834
)
—
(18,875
)
—
Cash (used in) from financing
activities
(12,567
)
(3,672
)
227,909
49,244
Foreign exchange effect on cash
(172
)
(14
)
(361
)
98
(Decrease) increase in cash and cash
equivalents
(5,046
)
7,796
(76,497
)
110,439
Cash and cash equivalents, beginning of
period
68,715
132,370
140,166
29,727
Cash and cash equivalents, end of
period
$
63,669
$
140,166
$
63,669
$
140,166
Selected Operating & Financial
Metrics | Q4 F2022
USD Thousands, except per share data
F2022 *
Q4 F2022 *
Q3 F2022 *
Q2 F2022 *
Q1 F2022 *
F2021
ARR
Total ARR
209,546
209,546
202,890
195,577
187,445
123,411
yoy growth
16.0
%
16.0
%
15.7
%
15.4
%
17.1
%
13.9
%
New Logo ARR
14,485
2,846
3,244
3,663
4,732
8,516
yoy growth *
33.5
%
(13.7
%)
5.3
%
76.2
%
97.9
%
25.8
%
yoy growth
70.1
%
5.1
%
27.0
%
149.9
%
164.4
%
25.8
%
Net Dollar Retention
108
%
108
%
107
%
107
%
109
%
106
%
# of Active Endpoints
13,615
13,615
13,565
13,336
12,506
11,577
yoy growth
17.6
%
17.6
%
17.2
%
16.3
%
18.0
%
16.8
%
TOTAL ARR BY VERTICAL
Enterprise & Government
162,957
162,957
158,068
150,632
143,877
81,982
yoy growth
17.3
%
17.3
%
18.5
%
16.5
%
16.9
%
10.7
%
Education
46,589
46,589
44,822
44,945
43,569
41,429
yoy growth
11.7
%
11.7
%
6.9
%
11.9
%
17.8
%
20.9
%
TOTAL ARR BY GEOGRAPHY
North America
163,791
163,791
159,220
155,334
150,916
102,656
yoy growth
9.8
%
9.8
%
9.5
%
9.4
%
11.1
%
9.7
%
International
45,755
45,755
43,670
40,243
36,530
20,755
yoy growth
45.0
%
45.0
%
46.1
%
46.8
%
51.0
%
40.5
%
REVENUE
Total Adjusted Revenue
210,431
54,001
54,477
52,939
49,014
yoy growth
15.4
%
12.7
%
17.7
%
16.7
%
14.7
%
Total Revenue
197,311
52,527
51,985
49,050
43,749
120,784
yoy growth
63.4
%
65.3
%
69.6
%
64.3
%
53.5
%
15.4
%
Recurring Revenue
191,555
51,025
50,505
47,642
42,383
117,048
% of revenue
97.1
%
97.1
%
97.2
%
97.1
%
96.9
%
96.9
%
yoy growth
63.7
%
65.5
%
70.1
%
64.7
%
53.6
%
16.5
%
Cloud Services
187,552
50,033
49,503
46,639
41,377
112,440
yoy growth
66.8
%
67.8
%
73.2
%
68.6
%
56.9
%
16.7
%
Managed Services
4,003
992
1,002
1,003
1,006
4,609
yoy growth
(13.1
%)
(3.2
%)
(10.3
%)
(20.1
%)
(16.9
%)
10.4
%
Other Revenue
5,756
1,502
1,480
1,408
1,366
3,736
% of revenue
2.9
%
2.9
%
2.8
%
2.9
%
3.1
%
3.1
%
yoy growth
54.1
%
59.9
%
54.5
%
50.9
%
50.8
%
(10.2
%)
Software License
746
203
173
194
176
yoy growth
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
Other
5,010
1,299
1,307
1,214
1,190
3,736
yoy growth
34.1
%
38.2
%
36.5
%
30.1
%
31.5
%
(10.2
)%
OTHER METRICS
Adj. Gross Margin (non-IFRS)
187,005
47,668
48,385
47,045
43,908
106,863
Margin % **
89
%
88
%
89
%
89
%
90
%
88
%
Adj. EBITDA (non-IFRS)
55,791
15,420
13,785
13,785
12,801
31,867
Margin % **
26.5
%
28.6
%
25.3
%
26.0
%
26.1
%
26.4
%
Adj. EPS (non-IFRS)
0.41
0.08
0.10
0.13
0.09
0.46
Weighted avg # of shares outstanding -
basic
50,381
51,067
50,728
50,073
49,673
47,132
Weighted avg # of shares outstanding -
diluted ***
53,063
53,192
52,556
53,008
52,883
49,917
Cash From Operating Activities
39,792
8,653
17,046
14,731
(637
)
46,836
yoy growth
(15
%)
(24
%)
134
%
10
%
(104
%)
88
%
Cash, cash equivalents, and short-term
investments
64,029
64,029
69,075
61,596
55,869
140,526
yoy growth
(54
%)
(54
%)
(48
%)
(53
%)
(4
%)
198
%
Total Deferred Revenue
210,471
210,471
194,326
187,852
179,086
160,182
yoy growth
31
%
31
%
24
%
22
%
21
%
12
%
* Year over year growth for fiscal 2022 is
calculated compared to an as-if combined basis for the same periods
of the previous fiscal year.
** Margin % is calculated as a percentage
of Adjusted Revenue.
*** Diluted weighted average number of
common shares outstanding includes the dilutive effects of stock
options, PSUs, and RSUs, for the purposes of determining Adjusted
EPS. The amount may differ from diluted weighted average number of
common shares outstanding disclosed in the Company’s financial
statements, which excludes such dilutive securities when their
effects are antidilutive.
We define Non-IFRS earnings per share ("Adjusted EPS") as
diluted earnings (loss) per share adjusted for foreign exchange
gain or loss, depreciation and amortization, share-based
compensation expense, fair value adjustments relating to acquired
deferred revenue, fair value adjustments relating to acquired
deferred commission, restructuring or reorganization charges and
post-retirement benefits and non-recurring items, and income tax
effects related to the non-GAAP adjustments.
Adjusted EPS is not a standardized financial measure under IFRS
and therefore it may not be comparable to similar measures
presented by other issuers. We believe this metric provides useful
information to investors and others in understanding and evaluating
our operating results as it helps illustrate underlying trends in
our business that could otherwise be masked by the effect of the
income or expenses that are not indicative of the core operating
performance of our business.
Adjusted EPS (Non-IFRS) Reconciliation
Q4 F2022
F2022
Diluted (loss) income per share
$
(0.10
)
$
(0.49
)
Adjustments:
Depreciation and amortization(1)
0.12
0.48
Share-based compensation
0.08
0.31
Foreign exchange (gain) loss
—
0.01
Fair value adjustments relating to
acquired deferred revenue
0.03
0.25
Fair value adjustments relating to
acquired deferred commission
—
(0.03
)
Acquisition and integration costs
0.03
0.16
Litigation costs
—
0.03
Income tax effects related to non-GAAP
adjustments(2)
(0.08
)
(0.31
)
Adjusted EPS
$
0.08
$
0.41
(1)
Depreciation and amortization includes
depreciation of property and equipment, amortization of
right-of-use assets, and amortization of acquired intangible
assets.
(2)
Income tax effects related to non-GAAP
adjustments is calculated based on the Company’s statutory tax rate
of 27%.
Diluted weighted average number of Common Shares outstanding for
Adjusted EPS is presented below.
Q4 F2022
F2022
Basic weighted average number of common
shares outstanding
51,067,421
50,381,336
Effect of dilutive securities:
Stock Option
69,017
219,098
PSU
759,620
759,620
RSU
1,295,535
1,702,842
Diluted weighted average number of common
shares outstanding(1)
53,191,593
53,062,896
(1)
Diluted weighted average number of common
shares outstanding for Adjusted EPS may differ from diluted
weighted average number of common shares outstanding disclosed in
the Company’s financial statements, which excludes the impact of
dilutive securities when their effects are antidilutive.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220823005791/en/
Investor Relations Joo-Hun Kim IR@absolute.com
212-868-6760 Media Relations Becki Levine press@absolute.com
858-524-9443
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