Full Year Revenue Grew 13% and Non-GAAP Net
Revenue Grew 16% Year over Year
Rocket Fuel Inc. (NASDAQ:FUEL), a leading Programmatic Marketing
Platform provider, today announced financial results for the fourth
quarter and fiscal year ended December 31, 2015. Rocket Fuel posted
13% growth in annual revenue and 16% growth in annual non-GAAP net
revenue over 2014, plus positive non-GAAP adjusted EBITDA of $8.9
million in the fourth quarter, and $0.1 million for the full year
2015.
“Rocket Fuel’s fourth quarter results are
evidence of our commitment to a new operating philosophy shaped by
executional rigor. We exceeded guidance on both the top and
bottom-line, and achieved Adjusted EBITDA profitability for the
year, an important goal that we laid out in early 2015. We are
attracting world class talent who recognize the potential of Rocket
Fuel, and the strength of our Moment ScoringTM technology across
devices and channels is a strategic advantage that presents many
opportunities for profitable growth,” said Randy Wootton, Chief
Executive Officer.
In a separate press release today, Rocket Fuel
announced that Rex Jackson will join the Company as its Chief
Financial Officer, effective March 16, 2016. Mr. Jackson brings
significant public company experience, most recently as Chief
Financial Officer of JDSU.
Financial Highlights for the Fourth
Quarter of 2015
Revenue of $125.4 million
increased 12% over the third quarter of 2015 and declined 10%
compared to $139.5 million for the fourth quarter of 2014. Revenue
derived from the delivery of digital advertising to mobile, social,
and video channels collectively was $46.9 million in the fourth
quarter of 2015.
Non-GAAP net revenue of $74.7
million exceeded prior guidance of $68 million to $72 million.
Non-GAAP net revenue increased 10% over the third quarter of 2015
and declined 3% compared to $76.7 million for the fourth quarter of
2014.
Net loss decreased to $(12.7)
million, or $(0.29) per diluted share, compared to a net loss of
$(20.5) million, or $(0.49) per diluted share for the fourth
quarter of 2014.
Non-GAAP adjusted net income
(loss) for the quarter decreased to $(1.8) million, or
$(0.04) per diluted share, compared to $(7.4) million, or $(0.18)
per diluted share, for the fourth quarter of 2014.
Non-GAAP adjusted EBITDA of
$8.9 million exceeded prior guidance of $3 million to $7 million,
and compares to $2.8 million in the fourth quarter of 2014.
Cash and cash equivalents were
$78.6 million as of December 31, 2015.
Active customer count was
1,666, up from 1,636 in the fourth quarter of
2014.
Employee headcount was 954 as
of December 31, 2015.
Financial Highlights for the Fiscal Year
ended December 31, 2015
Revenue of $461.6 million
increased 13% compared to $408.6 million for the year ended
December 31, 2014. Revenue derived from the delivery of digital
advertising to mobile, social, and video channels collectively was
$168.3 million for the year.
Non-GAAP net revenue of $272.5
million increased 16% compared to $235.2 million for the year ended
December 31, 2014.
Net loss was $(210.5) million,
or $(4.95) per diluted share, inclusive of an aggregate $124.9
million in restructuring and impairment charges, compared to a net
loss of $(64.3) million, or $(1.74) per diluted share for the year
ended December 31, 2014.
Non-GAAP adjusted net income
(loss) for the year was $(41.1) million, or $(0.97) per
diluted share, compared to $(24.1) million, or $(0.65) per diluted
share, for the year ended December 31, 2014.
Non-GAAP adjusted EBITDA was
$0.1 million compared to $(1.0) million for the year ended December
31, 2014.
Financial Outlook for the First Quarter
of 2016
For the first quarter of 2016, the Company expects a typical
seasonal decline in activity, and thus anticipates:
- Non-GAAP net revenue in the range of $53
million to $56 million,
- Non-GAAP adjusted EBITDA of a loss of
$(11) million to $(14) million.
In addition to continuing to increase quarterly
net revenue and Adjusted EBITDA, consistent with our typical
quarterly seasonal patterns, Rocket Fuel's financial goals for 2016
include driving toward free cash flow positive for the full
year.
Conference Call and Webcast
Information
The Rocket Fuel fourth quarter and fiscal year
2015 teleconference and webcast is scheduled to begin at 2:00 PM
Pacific Time on Wednesday, February 24, 2016. To participate on the
live call, analysts and investors should dial 1-888-378-0320, or
outside the U.S. 719-325-2281, at least ten minutes prior to the
call. Rocket Fuel will also offer a live and archived webcast of
the conference call, accessible from the “Investors” section of its
website at www.rocketfuel.com
Use of Non-GAAP Measures
This press release includes information relating
to non-GAAP net revenue, non-GAAP adjusted EBITDA, non-GAAP
adjusted net income (loss) and non-GAAP adjusted operating expenses
(which we refer to as “cash costs”), which are financial measures
that have not been prepared in accordance with generally accepted
accounting principles in the United States ("GAAP"). These non-GAAP
financial measures have been included in this press release, or
discussed on our teleconference and webcast, because they are
measures used by our management and board of directors to
understand and evaluate our core operating performance and trends,
to prepare and approve our annual budget, and to develop short- and
long-term operational plans.
We define non-GAAP net revenue as GAAP revenue
less media costs. Media costs consist of costs for advertising
impressions we purchase from real-time advertising exchanges or
other third parties. A limitation of non-GAAP net revenue is
that it is a measure designed for internal purposes that may be
unique to Rocket Fuel and may not enhance the comparability of
Rocket Fuel’s results to other companies in the same industry that
have similar business arrangements but present the impact of media
costs differently. Our management compensates for this limitation
by also considering the comparable GAAP financial measures of
revenue, media costs and other cost of revenue.
We define non-GAAP adjusted EBITDA as GAAP net
income (loss) before interest expense, other income (expense), net,
income tax provision (benefit), depreciation and amortization
expense, stock-based compensation expense and related payroll
taxes, acquisition and restructuring related expenses, and
impairment charges. Non-GAAP adjusted EBITDA has a number of
limitations, including the following: although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future and non-GAAP
adjusted EBITDA does not reflect cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements; non-GAAP adjusted EBITDA does not reflect changes in,
or cash requirements for, our working capital needs; non-GAAP
adjusted EBITDA does not consider the potentially dilutive impact
of equity-based compensation; non-GAAP adjusted EBITDA does not
reflect acquisition and restructuring related expenses, tax and
interest expenses that may represent payments reducing the cash
available to us; and other companies, including those in our
industry, may calculate non-GAAP adjusted EBITDA differently, which
reduces its usefulness as a comparative measure. Because of these
limitations, our management considers non-GAAP adjusted EBITDA
alongside other financial performance measures, including cash flow
metrics, net income (loss) and our other GAAP results.
We define non-GAAP adjusted net income (loss) as
GAAP net income (loss) excluding stock-based compensation expense,
amortization of intangible assets, impairment charges, acquisition
and restructuring related expenses and the estimated tax impact of
the foregoing items. A limitation of non-GAAP adjusted net income
(loss) is that it is a measure that may be unique to Rocket Fuel
and may not enhance the comparability of Rocket Fuel’s results to
other companies in the same industry that define adjusted net
income (loss) differently. This measure may also exclude expenses
that may have a material impact on Rocket Fuel’s reported financial
results. Our management compensates for these limitations by also
considering the comparable GAAP financial measure of net income
(loss).
We define non-GAAP adjusted operating expenses
(which we refer to as “cash costs”) as GAAP total costs and
expenses and adjusted for media costs, depreciation and
amortization expense, impairment charges, stock-based compensation
expense and related payroll taxes, and acquisition and
restructuring related expense. Non-GAAP adjusted operating expenses
has a number of limitations, including the following: although
depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the
future and this measure does not reflect cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements; non-GAAP adjusted operating expenses does not reflect
changes in, or cash requirements for, our working capital needs;
non-GAAP adjusted operating expenses does not consider the
potentially dilutive impact of equity-based compensation; non-GAAP
adjusted operating expenses does not reflect acquisition and
restructuring related expenses, tax and interest expenses that may
represent payments reducing the cash available to us; and other
companies, including those in our industry, may calculate
non-GAAP adjusted operating expenses differently, which reduces its
usefulness as a comparative measure. Because of these limitations,
our management considers non-GAAP adjusted operating expenses
alongside other financial performance measures, including total
expenses, operating cash flow and our other GAAP results.
For a reconciliation of non-GAAP financial
measures to the nearest comparable GAAP financial measures, see
“Reconciliation from GAAP Revenue to Non-GAAP Net Revenue,”
“Reconciliation from GAAP Net Income (Loss) to Non-GAAP Adjusted
EBITDA,” “Reconciliation from GAAP Net Income (Loss) to Non-GAAP
Adjusted Net Income (Loss)” and “Reconciliation from GAAP Total
Cost and Expenses to Non-GAAP Adjusted Operating Expenses" ('Cash
Costs') included in this press release.
These non-GAAP financial measures are not
intended to be considered in isolation from, as substitutes for, or
as superior to, the corresponding financial measures prepared in
accordance with GAAP.
Cautions Regarding Forward-Looking
Statements
This press release and the webcast of the same
date contain “forward-looking statements” regarding future events
and our future financial performance, including but not limited to:
expected progress towards profitable revenue growth; the
anticipated positive impact of our sales and service restructuring
and lower cost sales activities, our new executive hires, and our
new go to market approach and sales strategy; our ability to expand
customer relationships and increase revenue from direct customers;
expectations regarding our strategic imperatives and other business
initiatives including but not limited to our ability to grow our
brand, direct response, and platform businesses; the value of our
integrated DMP and DSP platform, the desired integration of brand
and direct response campaigns, and the importance of programmatic
TV; our ability to identify and capitalize on market trends; our
technology advantage; our expectations for margins going forward;
expectations regarding capital and general cash spending and cash
balances; the expected financial strength provided by our cash
position; and expectations for first quarter non-GAAP net revenue
and non-GAAP adjusted EBITDA, and financial goals for fiscal year
2016. Words such as “expect,” “believe,” “intend,” “plan,” “goal”,
“focus” and other similar words are also intended to identify
forward-looking statements.
These forward-looking statements are subject to
a number of risks and uncertainties that may cause actual results
to differ materially from the results anticipated by such
statements, including, without limitation: our limited operating
history, particularly as a relatively new public company;
fluctuations in our operating results, including but not limited to
fluctuations due to seasonality; our history of losses; failure to
achieve expected synergies and efficiencies of operations between
Rocket Fuel and [x+1]; failure to achieve the expected benefits of
our efficiency improvement plans including various cost-cutting
measures; risks associated with our growth, including growth
outside of the U.S.; failure to adequately address competition,
particularly from agency trading desks; failure to make the right
investment decisions with regard to new products, technology, and
sales strategies; risks associated with maintaining or increasing
sales to new and existing customers and maintaining customer
satisfaction; and general market, political, economic and business
conditions.
Additional factors that could cause actual
results to differ materially from those anticipated by our
forward-looking statements are under the caption “Risk Factors” in
our Annual Report on Form 10-K filed with the Securities and
Exchange Commission (“SEC”) on March 16, 2015 and in subsequent SEC
filings. These forward-looking statements are made as of the
date of this press release and the related webcast, and Rocket Fuel
expressly disclaims any obligation or undertaking to update the
forward-looking statements contained herein or therein to reflect
events that occur or circumstances that exist after the date on
which the statements were made.
About Rocket Fuel
A leading Programmatic Marketing Platform
provider, Rocket Fuel (NASDAQ:FUEL) offers brands, agencies, and
platform partners managed services, as well as a SaaS-based Data
Management Platform (DMP) and Demand Side Platform (DSP), to
optimize performance, awareness, and lift across marketing
objectives, channels and devices. By applying artificial
intelligence at big data scale, Rocket Fuel's Moment Scoring™
technology performs a real-time calculation of each ad opportunity
based on a marketer's goal to determine the likelihood a consumer
will engage in a desired action. Moment ScoringTM technology is
designed to go beyond 1:1 marketing by learning to predict what
marketing actions to take with a campaign at a precise moment in
time, which results in a much more efficient use of marketing
dollars. Rocket Fuel serves 96 of the Ad Age 100, three of the top
five agency holding company trading desks, and partners with some
of the world's leading CRM platforms, marketing platforms, and
systems integrators. Headquartered in Redwood City, California,
Rocket Fuel has more than 20 offices worldwide and trades on the
NASDAQ Global Select Market under the ticker symbol "FUEL." For
more information, please visit http://www.rocketfuel.com or
call 1-888-717-8873.
Rocket Fuel, the Rocket Fuel logo, Moment
Scoring, Advertising That Learns and Marketing That Learns are
trademarks or registered trademarks of Rocket Fuel Inc. in the
United States and other countries.
|
Rocket Fuel Inc. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands) |
|
|
|
|
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
78,560 |
|
|
$ |
107,056 |
|
Accounts receivable, net |
124,998 |
|
|
135,400 |
|
Prepaid expenses |
3,803 |
|
|
3,698 |
|
Other current assets |
2,081 |
|
|
12,531 |
|
Total current assets |
209,442 |
|
|
258,685 |
|
Property, equipment and
software, net |
82,781 |
|
|
89,441 |
|
Restricted cash |
2,141 |
|
|
2,915 |
|
Intangible assets,
net |
50,919 |
|
|
69,299 |
|
Goodwill |
— |
|
|
115,412 |
|
Deferred tax assets,
net |
718 |
|
|
2,367 |
|
Other assets |
1,053 |
|
|
1,146 |
|
Total
assets |
$ |
347,054 |
|
|
$ |
539,265 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts payable |
$ |
71,292 |
|
|
$ |
76,085 |
|
Accrued and other current
liabilities |
40,734 |
|
|
33,258 |
|
Deferred revenue |
2,116 |
|
|
593 |
|
Current portion of capital
leases |
8,602 |
|
|
5,482 |
|
Current portion of debt |
45,720 |
|
|
45,705 |
|
Total current liabilities |
168,464 |
|
|
161,123 |
|
Debt - Less current
portion |
17,617 |
|
|
23,335 |
|
Capital leases - Less
current portion |
11,855 |
|
|
12,341 |
|
Deferred rent - Less
current portion |
14,042 |
|
|
26,818 |
|
Deferred tax
liabilities |
39 |
|
|
2,068 |
|
Other liabilities |
1,137 |
|
|
814 |
|
Total liabilities |
213,154 |
|
|
226,499 |
|
|
|
|
|
Stockholders'
Equity: |
|
|
|
Common stock |
44 |
|
|
42 |
|
Additional paid-in capital |
453,338 |
|
|
421,630 |
|
Accumulated other comprehensive
loss |
(151 |
) |
|
(120 |
) |
Accumulated deficit |
(319,331 |
) |
|
(108,786 |
) |
Total stockholders' equity |
133,900 |
|
|
312,766 |
|
Total
Liabilities and Stockholders' Equity |
$ |
347,054 |
|
|
$ |
539,265 |
|
|
|
|
|
|
|
|
|
|
Rocket Fuel Inc. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except loss per share
data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Revenue |
$ |
125,401 |
|
|
$ |
139,504 |
|
|
$ |
461,637 |
|
|
$ |
408,641 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Media costs |
50,700 |
|
|
62,834 |
|
|
189,089 |
|
|
173,477 |
|
Other cost of revenue (1) |
19,980 |
|
|
19,819 |
|
|
79,867 |
|
|
48,586 |
|
Research and development (1) |
10,786 |
|
|
12,919 |
|
|
44,922 |
|
|
39,794 |
|
Sales and marketing (1) |
39,831 |
|
|
42,461 |
|
|
166,140 |
|
|
146,430 |
|
General and administrative (1) |
13,691 |
|
|
18,750 |
|
|
58,354 |
|
|
60,545 |
|
Impairment of goodwill |
— |
|
|
— |
|
|
117,521 |
|
|
— |
|
Restructuring |
922 |
|
|
— |
|
|
7,393 |
|
|
— |
|
Total costs and
expenses |
135,910 |
|
|
156,783 |
|
|
663,286 |
|
|
468,832 |
|
Operating loss |
(10,509 |
) |
|
(17,279 |
) |
|
(201,649 |
) |
|
(60,191 |
) |
Interest expense |
1,090 |
|
|
1,007 |
|
|
4,563 |
|
|
3,092 |
|
Other (income) expense, net |
803 |
|
|
2,824 |
|
|
3,112 |
|
|
5,267 |
|
Total other expense,
net |
1,893 |
|
|
3,831 |
|
|
7,675 |
|
|
8,359 |
|
Loss before income
taxes |
(12,402 |
) |
|
(21,110 |
) |
|
(209,324 |
) |
|
(68,550 |
) |
Income tax provision (benefit) |
279 |
|
|
(614 |
) |
|
1,221 |
|
|
(4,239 |
) |
Net loss |
$ |
(12,681 |
) |
|
$ |
(20,496 |
) |
|
$ |
(210,545 |
) |
|
$ |
(64,311 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share attributable to common stockholders |
$ |
(0.29 |
) |
|
$ |
(0.49 |
) |
|
$ |
(4.95 |
) |
|
$ |
(1.74 |
) |
Basic and diluted
weighted-average shares used to compute net loss per share
attributable to common stockholders |
43,150 |
|
|
41,486 |
|
|
42,551 |
|
|
37,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes unaudited stock-based compensation
expense as follows (in thousands):
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Other cost of
revenue |
$ |
408 |
|
|
$ |
948 |
|
|
$ |
1,975 |
|
|
$ |
1,758 |
|
Research and
development |
1,937 |
|
|
1,462 |
|
|
7,706 |
|
|
5,039 |
|
Sales and
marketing |
2,260 |
|
|
2,774 |
|
|
9,894 |
|
|
10,372 |
|
General and
administrative |
1,180 |
|
|
1,461 |
|
|
6,399 |
|
|
6,361 |
|
|
$ |
5,785 |
|
|
$ |
6,645 |
|
|
$ |
25,974 |
|
|
$ |
23,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocket Fuel Inc. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS |
(In thousands) |
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
$ |
(12,681 |
) |
|
$ |
(20,496 |
) |
|
$ |
(210,545 |
) |
|
$ |
(64,311 |
) |
Adjustments to reconcile net loss
to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
Impairment of goodwill |
— |
|
|
— |
|
|
117,521 |
|
|
— |
|
Depreciation and amortization |
12,684 |
|
|
11,111 |
|
|
50,762 |
|
|
23,670 |
|
Impairment of leasehold
improvements |
3,929 |
|
|
— |
|
|
6,633 |
|
|
— |
|
Stock-based compensation |
5,785 |
|
|
6,645 |
|
|
25,974 |
|
|
23,838 |
|
Deferred taxes |
(379 |
) |
|
(1,618 |
) |
|
(379 |
) |
|
(5,418 |
) |
Excess tax benefit from stock-based
activity |
— |
|
|
(99 |
) |
|
— |
|
|
(278 |
) |
Other non-cash adjustments,
net |
384 |
|
|
483 |
|
|
1,499 |
|
|
871 |
|
Changes in operating assets and
liabilities, net of effects of acquisition: |
|
|
|
|
|
|
|
Accounts receivable |
(14,858 |
) |
|
(20,072 |
) |
|
9,275 |
|
|
(25,134 |
) |
Prepaid expenses and other
assets |
(764 |
) |
|
3,245 |
|
|
9,128 |
|
|
(9,153 |
) |
Accounts payable |
9,616 |
|
|
13,027 |
|
|
(4,015 |
) |
|
26,952 |
|
Accrued and other liabilities |
1,758 |
|
|
484 |
|
|
269 |
|
|
(1,085 |
) |
Deferred rent |
(3,868 |
) |
|
3,597 |
|
|
(3,184 |
) |
|
24,068 |
|
Deferred revenue |
465 |
|
|
(657 |
) |
|
1,523 |
|
|
(334 |
) |
Net cash provided by (used in)
operating activities |
2,071 |
|
|
(4,350 |
) |
|
4,461 |
|
|
(6,314 |
) |
INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Purchases of property, equipment
and software |
(715 |
) |
|
(7,579 |
) |
|
(11,512 |
) |
|
(47,865 |
) |
Business acquisition, net |
— |
|
|
— |
|
|
(367 |
) |
|
(97,444 |
) |
Capitalized internal-use software
development costs |
(3,195 |
) |
|
(2,141 |
) |
|
(12,402 |
) |
|
(7,600 |
) |
Change in restricted cash |
53 |
|
|
— |
|
|
689 |
|
|
(2,203 |
) |
Net cash used in investing
activities |
(3,857 |
) |
|
(9,720 |
) |
|
(23,592 |
) |
|
(155,112 |
) |
FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from the issuance of
common stock in public offering, net of underwriting discounts and
commission and issuance costs |
— |
|
|
— |
|
|
— |
|
|
115,403 |
|
Proceeds from exercise of common
stock options |
16 |
|
|
1,050 |
|
|
940 |
|
|
3,725 |
|
Excess tax benefit from stock-based
activity |
— |
|
|
99 |
|
|
— |
|
|
278 |
|
Proceeds from issuance of common
stock from employee stock purchase plan |
1,130 |
|
|
2,662 |
|
|
3,579 |
|
|
6,454 |
|
Tax withholdings related to net
share settlements of restricted stock units |
(458 |
) |
|
(326 |
) |
|
(1,432 |
) |
|
(567 |
) |
Repayment of capital lease
obligations |
(1,902 |
) |
|
(776 |
) |
|
(6,239 |
) |
|
(1,335 |
) |
Proceeds from debt facilities, net
of debt issuance costs |
— |
|
|
9,479 |
|
|
(242 |
) |
|
44,479 |
|
Repayment of debt facilities |
(1,500 |
) |
|
(2,445 |
) |
|
(6,000 |
) |
|
(13,578 |
) |
Net cash (used in) provided by
financing activities |
(2,714 |
) |
|
9,743 |
|
|
(9,394 |
) |
|
154,859 |
|
EFFECT OF EXCHANGE RATE
CHANGES ON CASH AND EQUIVALENTS |
(23 |
) |
|
(249 |
) |
|
29 |
|
|
(250 |
) |
CHANGE IN CASH AND CASH
EQUIVALENTS |
(4,523 |
) |
|
(4,576 |
) |
|
(28,496 |
) |
|
(6,817 |
) |
CASH AND CASH
EQUIVALENTS—Beginning of period |
83,083 |
|
|
111,632 |
|
|
107,056 |
|
|
113,873 |
|
CASH AND CASH
EQUIVALENTS—End of period |
$ |
78,560 |
|
|
$ |
107,056 |
|
|
$ |
78,560 |
|
|
$ |
107,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
SUPPLEMENTAL
DISCLOSURES OF OTHER CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
Cash paid for income
taxes, net of refunds |
$ |
417 |
|
|
$ |
840 |
|
|
$ |
1,251 |
|
|
$ |
1,035 |
|
Cash paid for
interest |
1,006 |
|
|
1,242 |
|
|
3,936 |
|
|
2,840 |
|
SUPPLEMENTAL
DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Purchases of property
and equipment recorded in accounts payable and accruals |
$ |
1,048 |
|
|
$ |
2,077 |
|
|
$ |
1,048 |
|
|
$ |
2,077 |
|
Property, plant and
equipment acquired under capital lease obligations |
3,681 |
|
|
10,764 |
|
|
8,797 |
|
|
18,619 |
|
Vesting of early
exercised options |
34 |
|
|
68 |
|
|
167 |
|
|
742 |
|
Stock-based
compensation capitalized in internal-use software costs |
598 |
|
|
460 |
|
|
2,616 |
|
|
1,643 |
|
Issuance of common
stock in connection with acquisition |
— |
|
|
— |
|
|
— |
|
|
82,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocket Fuel Inc. |
UNAUDITED NON-GAAP MEASURES |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Non-GAAP net
revenue |
$ |
74,701 |
|
|
$ |
76,670 |
|
|
$ |
272,548 |
|
|
$ |
235,164 |
|
Non-GAAP adjusted
EBITDA |
$ |
8,899 |
|
|
$ |
2,844 |
|
|
$ |
89 |
|
|
$ |
(966 |
) |
Non-GAAP adjusted net
income (loss) |
$ |
(1,847 |
) |
|
$ |
(7,434 |
) |
|
$ |
(41,079 |
) |
|
$ |
(24,101 |
) |
Non-GAAP adjusted net
income (loss) per diluted share |
$ |
(0.04 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.65 |
) |
Non-GAAP adjusted
operating expenses ("Cash Costs") |
$ |
65,802 |
|
|
$ |
73,826 |
|
|
$ |
272,459 |
|
|
$ |
236,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocket Fuel Inc. |
UNAUDITED RECONCILIATION FROM GAAP REVENUE TO
NON-GAAP NET REVENUE |
(In thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Revenue |
$ |
125,401 |
|
|
$ |
139,504 |
|
|
$ |
461,637 |
|
|
$ |
408,641 |
|
Less: Media costs |
50,700 |
|
|
62,834 |
|
|
189,089 |
|
|
173,477 |
|
Non-GAAP net
revenue |
$ |
74,701 |
|
|
$ |
76,670 |
|
|
$ |
272,548 |
|
|
$ |
235,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocket Fuel Inc. |
UNAUDITED RECONCILIATION FROM GAAP NET LOSS TO
NON-GAAP ADJUSTED EBITDA |
(In thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Net loss |
$ |
(12,681 |
) |
|
$ |
(20,496 |
) |
|
$ |
(210,545 |
) |
|
$ |
(64,311 |
) |
Adjustments: |
|
|
|
|
|
|
|
Interest expense |
1,090 |
|
|
1,007 |
|
|
4,563 |
|
|
3,092 |
|
Income tax provision (benefit) |
279 |
|
|
(614 |
) |
|
1,221 |
|
|
(4,239 |
) |
Depreciation and amortization
expense |
12,684 |
|
|
11,111 |
|
|
50,762 |
|
|
23,670 |
|
Stock-based compensation
expense |
5,785 |
|
|
6,645 |
|
|
25,974 |
|
|
23,530 |
|
Other (income) expense, net |
803 |
|
|
2,824 |
|
|
3,112 |
|
|
5,267 |
|
Acquisition expense |
— |
|
|
2,240 |
|
|
— |
|
|
11,476 |
|
Restructuring expense |
922 |
|
|
— |
|
|
7,393 |
|
|
— |
|
Payroll tax expense related to
stock-based compensation |
17 |
|
|
127 |
|
|
88 |
|
|
549 |
|
Impairment of goodwill |
— |
|
|
— |
|
|
117,521 |
|
|
— |
|
Total adjustments |
21,580 |
|
|
23,340 |
|
|
210,634 |
|
|
63,345 |
|
Non-GAAP adjusted
EBITDA |
$ |
8,899 |
|
|
$ |
2,844 |
|
|
$ |
89 |
|
|
$ |
(966 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocket Fuel Inc. |
UNAUDITED RECONCILIATION FROM GAAP NET LOSS TO
NON-GAAP ADJUSTED NET INCOME (LOSS) |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Net loss |
$ |
(12,681 |
) |
|
$ |
(20,496 |
) |
|
$ |
(210,545 |
) |
|
$ |
(64,311 |
) |
Stock-based compensation
expense |
5,785 |
|
|
6,645 |
|
|
25,974 |
|
|
23,530 |
|
Amortization of intangible
assets |
4,127 |
|
|
4,227 |
|
|
18,380 |
|
|
5,402 |
|
Acquisition expense |
— |
|
|
2,240 |
|
|
— |
|
|
11,476 |
|
Restructuring expense |
922 |
|
|
— |
|
|
7,393 |
|
|
— |
|
Tax impact of the above items |
— |
|
|
(50 |
) |
|
198 |
|
|
(198 |
) |
Impairment of goodwill |
— |
|
|
— |
|
|
117,521 |
|
|
— |
|
Non-GAAP adjusted net
income (loss) |
$ |
(1,847 |
) |
|
$ |
(7,434 |
) |
|
$ |
(41,079 |
) |
|
$ |
(24,101 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share attributable to common stockholders |
$ |
(0.29 |
) |
|
$ |
(0.49 |
) |
|
$ |
(4.95 |
) |
|
$ |
(1.74 |
) |
|
|
|
|
|
|
|
|
Non-GAAP adjusted net
income (loss) per diluted share |
$ |
(0.04 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
Weighted average shares
used in computing non-GAAP adjusted net income (loss) per diluted
share |
43,150 |
|
41,486 |
|
42,551 |
|
37,001 |
|
|
|
|
|
|
|
|
|
Rocket Fuel Inc. |
UNAUDITED RECONCILIATION FROM GAAP TOTAL COSTS
AND EXPENSES TO NON-GAAP ADJUSTED OPERATING EXPENSES ("CASH
COSTS") |
(In thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Total costs and
expenses |
$ |
135,910 |
|
|
$ |
156,783 |
|
|
$ |
663,286 |
|
|
$ |
468,832 |
|
Less media costs |
50,700 |
|
|
62,834 |
|
|
189,089 |
|
|
173,477 |
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization
expense |
12,684 |
|
|
11,111 |
|
|
50,762 |
|
|
23,670 |
|
Stock-based compensation |
5,785 |
|
|
6,645 |
|
|
25,974 |
|
|
23,530 |
|
Acquisition expense |
— |
|
|
2,240 |
|
|
— |
|
|
11,476 |
|
Restructuring expense |
922 |
|
|
— |
|
|
7,393 |
|
|
— |
|
Payroll tax expense related to
stock based compensation |
17 |
|
|
127 |
|
|
88 |
|
|
549 |
|
Impairment of goodwill |
— |
|
|
— |
|
|
117,521 |
|
|
— |
|
Total adjustments |
19,408 |
|
|
20,123 |
|
|
201,738 |
|
|
59,225 |
|
Non-GAAP adjusted
operating expenses ("Cash Costs") |
$ |
65,802 |
|
|
$ |
73,826 |
|
|
$ |
272,459 |
|
|
$ |
236,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations:
(650) 481-6082
ir@rocketfuel.com
ROCKET FUEL INC. (NASDAQ:FUEL)
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