VIRTUSA CORPORATION Virtusa Corporation Data Sheet** | ||||||||||||||||
Quarter ended December 31, 2020 | ||||||||||||||||
2020 | 2021 | |||||||||||||||
Q120 | Q220 | Q320 | Q420 | FY20 | Q121 | Q221 | Q321 | |||||||||
Revenue: | ||||||||||||||||
Revenue (USD in MM) | $ | 319.0 | $ | 328.5 | $ | 335.1 | $ | 329.7 | $ | 1,312.3 | $ | 301.1 | $ | 317.2 | $ | 346.1 |
Q/Q | -3% | 3% | 2% | -2% | -9% | 5% | 9% | |||||||||
Y/Y | 6% | 8% | 6% | 1% | 5% | -6% | -3% | 3% | ||||||||
Margin: | ||||||||||||||||
Gross margin | 26.4% | 27.4% | 29.4% | 24.3% | 26.9% | 22.8% | 26.5% | 32.9% | ||||||||
Operating margin | 4.2% | 5.9% | 9.1% | 5.2% | 6.1% | 2.4% | 4.0% | 12.0% | ||||||||
Non-GAAP Operating Margin | 7.6% | 8.9% | 12.1% | 6.0% | 8.7% | 4.7% | 9.5% | 15.9% | ||||||||
Revenue By Geography: | ||||||||||||||||
North America | 72% | 74% | 75% | 74% | 74% | 74% | 73% | 74% | ||||||||
Europe | 20% | 17% | 16% | 17% | 17% | 17% | 17% | 17% | ||||||||
ROW | 8% | 9% | 9% | 9% | 9% | 9% | 10% | 9% | ||||||||
Revenue By Industry Group: | ||||||||||||||||
BFSI | 57% | 57% | 54% | 53% | 55% | 55% | 54% | 55% | ||||||||
Communications and Tech | 22% | 23% | 24% | 25% | 24% | 24% | 25% | 22% | ||||||||
Media & Information and Other | 6% | 6% | 7% | 8% | 7% | 7% | 8% | 8% | ||||||||
Healthcare | 15% | 14% | 15% | 14% | 14% | 14% | 13% | 15% | ||||||||
Revenue by Product Type: | ||||||||||||||||
Time & materials | 60% | 61% | 57% | 58% | 59% | 59% | 56% | 50% | ||||||||
Fixed bid | 40% | 39% | 43% | 42% | 41% | 41% | 44% | 50% | ||||||||
Revenue by Service Offering: | ||||||||||||||||
Application outsourcing | 57% | 55% | 55% | 55% | 56% | 54% | 56% | 57% | ||||||||
Consulting | 43% | 45% | 45% | 45% | 44% | 46% | 44% | 43% | ||||||||
Effort Mix: | ||||||||||||||||
Offshore effort | 71% | 71% | 72% | 72% | 72% | 72% | 73% | 74% | ||||||||
Onsite effort | 29% | 29% | 28% | 28% | 28% | 28% | 27% | 26% | ||||||||
Revenue mix : | ||||||||||||||||
Offshore | 37% | 41% | 40% | 43% | 40% | 39% | 41% | 44% | ||||||||
Onsite | 63% | 59% | 60% | 57% | 60% | 61% | 59% | 56% | ||||||||
Clients: | ||||||||||||||||
Active clients | 217 | 216 | 216 | 221 | 221 | 224 | 228 | 230 | ||||||||
Number of New clients | 6 | 5 | 6 | 6 | 23 | 8 | 7 | 4 | ||||||||
Number of 10% clients | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||
Revenue from repeat clients >12 month | 98% | 98% | 96% | 96% | 97% | 96% | 96% | 97% | ||||||||
Top client | 16% | 16% | 16% | 18% | 16% | 17% | 19% | 20% | ||||||||
Top 10 clients | 59% | 57% | 56% | 55% | 56% | 56% | 56% | 55% | ||||||||
Clients Contribution (TTM) | ||||||||||||||||
$1M+ | 126 | 126 | 132 | 132 | 132 | 138 | 132 | 131 | ||||||||
$5M+ | 39 | 39 | 37 | 35 | 35 | 39 | 41 | 42 | ||||||||
$10M+ | 21 | 23 | 23 | 21 | 21 | 23 | 22 | 22 | ||||||||
$25M+ | 8 | 11 | 11 | 11 | 11 | 11 | 10 | 9 | ||||||||
$50M+ | 5 | 5 | 5 | 5 | 5 | 4 | 4 | 4 | ||||||||
$100M+ | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||
Utilization: | ||||||||||||||||
Utilization, excluding trainees | 81% | 82% | 82% | 80% | 81% | 77% | 80% | 82% | ||||||||
Billed days^ | 1,047,000 | 1,089,900 | 1,083,500 | 1,110,400 | 4,330,800 | 1,056,100 | 1,133,000 | 1,140,700 | ||||||||
Headcount: | ||||||||||||||||
Total employees | 22,143 | 22,411 | 22,267 | 22,830 | 22,830 | 22,716 | 22,883 | 23,837 | ||||||||
Non IT professionals | 2,232 | 2,243 | 2,192 | 2,224 | 2,224 | 2,107 | 2,111 | 2,058 | ||||||||
IT professionals | 19,911 | 20,168 | 20,075 | 20,606 | 20,606 | 20,609 | 20,772 | 21,779 | ||||||||
Net addition / (reduction) | 398 | 268 | (144) | 563 | 1,085 | -114 | 167 | 954 | ||||||||
Global Attrition TTM | 26% | 26% | 26% | 26% | 26% | 24% | 22% | 20% | ||||||||
In-quarter attrition | 6.5% | 7.2% | 6.7% | 5.6% | 4.8% | 5.1% | 5.1% | |||||||||
Balance sheet & Cash flows | ||||||||||||||||
Cash, Cash Equivalents, Short term | $ | 208.3 | $ | 198.5 | $ | 237.5 | $ | 300.6 | $ | 300.6 | $ | 289.3 | $ | 300.8 | $ | 349.8 |
Investments & Long term Investments | ||||||||||||||||
- Cash | $ | 190.0 | $ | 183.4 | $ | 217.4 | $ | 290.8 | $ | 290.8 | $ | 285.3 | $ | 297.5 | $ | 347.2 |
- Short term investments | $ | 17.9 | $ | 14.9 | $ | 20.1 | $ | 9.8 | $ | 9.8 | $ | 4.0 | $ | 3.3 | $ | 2.6 |
- Long term investments | $ | 0.4 | $ | 0.2 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 |
Operating Cash Flows# | 1% | 7% | 15% | 2% | 6% | 19% | 16% | 19% | ||||||||
CAPEX# | 1% | 1% | 1% | 1% | 1% | 0% | 1% | 1% | ||||||||
Free cash flows# | 0% | 6% | 14% | 1% | 5% | 18% | 15% | 18% | ||||||||
DSO (days) | 75 | 74 | 69 | 78 | 70 | 65 | 57 |
*Trailing twelve months (TTM) Includes voluntary and Involuntary attrition,
-
Number and Percentages depicted above are subject to rounding
# As a % of revenue
^ Rounded to the nearest 100
Virtusa Corporation Non-GAAP Data Sheet
Quarter ended Dec 31, 2020**
All amounts in USD thousands, except share and per share amounts | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 |
2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | |
GAAP income from operations | 13,428 | 19,235 | 30,410 | 17,139 | 80,212 | 7,155 | 12,726 | 41,451 |
Add: Stock-based compensation expense | 6,676 | 5,834 | 5,775 | (2,569) | 15,716 | 3,592 | 4,078 | 4,027 |
Add: acquisition-related charges and restructuring charges(a) | 4,097 | 4,299 | 4,345 | 5,174 | 17,915 | 2,590 | 10,767 | 6,512 |
Add: Non-recurring professional fees (j) | 706 | 2,633 | 2,998 | |||||
Non-GAAP income from operations | 24,201 | 29,368 | 40,530 | 19,744 | 113,843 | 14,043 | 30,204 | 54,988 |
GAAP Operating Margin | 4.2% | 5.9% | 9.1% | 5.2% | 6.1% | 2.4% | 4.0% | 12.0% |
Effect of above adjustments to income from operations | 3.4% | 3.0% | 3.0% | 0.8% | 2.6% | 2.3% | 5.5% | 3.9% |
Non-GAAP Operating Margin | 7.6% | 8.9% | 12.1% | 6.0% | 8.7% | 4.7% | 9.5% | 15.9% |
GAAP net income (loss) available to Virtusa common stockholders | 4,747 | 6,014 | 11,633 | 21,158 | 43,552 | (193) | 7,681 | 24,360 |
Add: Stock-based compensation expense | 6,676 | 5,834 | 5,775 | (2,569) | 15,716 | 3,592 | 4,078 | 4,027 |
Add: acquisition-related charges and restructuring charges(a) | 4,243 | 4,420 | 4,345 | 5,174 | 18,182 | 2,590 | 10,767 | 6,512 |
Add: Impairment of investment (i) | - | - | 184 | - | 184 | - | - | - |
Add: Non-recurring professional fees (j) | 706 | 2,633 | 2,998 | |||||
Less : Gain on redemption of equity method investment | (1,179) | |||||||
Add : Loss on sale of asset held for sale (l) | 619 | |||||||
Add: Foreign currency transaction (gains) or losses, net (b) | (1,202) | 3,437 | 3,065 | 10,699 | 15,999 | 1,241 | (4,098) | (1,126) |
Add: Impact from Tax Act(h) | - | - | - | - | - | - | - | - |
Add: Tax adjustments (c) | (1,650) | (2,664) | 161 | (21,927) | (26,080) | (1,908) | (2,958) | (3,625) |
Noncontrolling interest, net of taxes (d) | (35) | 7 | (16) | - | (44) | - | - | - |
Non-GAAP net income available to Virtusa common stockholders | 12,779 | 17,048 | 25,147 | 12,535 | 67,509 | 6,028 | 16,924 | 33,765 |
GAAP diluted earnings (loss) per share (f) | 0.15 | 0.20 | 0.38 | 0.66 | 1.42 | (0.01) | 0.25 | 0.75 |
Effect of Stock-based compensation expense (g) | 0.20 | 0.17 | 0.17 | (0.07) | 0.47 | 0.12 | 0.12 | 0.12 |
Effect of acquisition-related charges and restructuring charges(a) (g) | 0.13 | 0.13 | 0.13 | 0.15 | 0.54 | 0.09 | 0.32 | 0.19 |
Effect of impairment of investment (i) (k) | - | - | 0.01 | - | - | - | - | - |
Effect of non-recurring professional fees (j) (k) | 0.02 | 0.08 | 0.09 | |||||
Effect of gain on redemption of equity method investment (k) | (0.04) | - | ||||||
Effect of loss on sale of asset held for sale (k) (l) | 0.02 | |||||||
Effect Foreign currency transaction (gains) or losses(b) (g) | (0.04) | 0.10 | 0.09 | 0.32 | 0.48 | 0.04 | (0.12) | (0.03) |
Effect of tax impact from Tax Act (g) (h) | - | - | - | - | - | - | - | - |
Effect tax adjustment(c) (g) | (0.05) | (0.08) | - | (0.65) | (0.77) | (0.06) | (0.09) | (0.11) |
Effect of noncontrolling interest (d) (g) | - | - | - | - | - | - | - | - |
Effect of dividend on Series A Convertible Preferred Stock (f) (g) | 0.03 | 0.03 | - | - | 0.13 | - | 0.03 | - |
Effect of change in shares for non-GAAP WASO (f) | (0.01) | (0.01) | - | - | (0.13) | - | (0.02) | - |
Non-GAAP diluted earnings per share (e) (g) | 0.41 | 0.54 | 0.78 | 0.41 | 2.14 | 0.20 | 0.53 | 1.03 |
- Acquisition-relatedcharges include, when applicable, amortization of purchased intangibles, external deal costs, transaction-related professional fees, acquisition-related retention bonuses, changes in the fair value of contingent consideration liabilities, accreted interest related to deferred acquisition payments, charges for impairment of acquired intangible assets and other acquisition-related costs including integration expenses consisting of outside professional and consulting services and direct and incremental travel costs. Restructuring charges, when applicable, include termination benefits, as well as certain professional fees related to restructuring. The following table provides the details of the acquisition-related charges and restructuring charges:
Three Months Ended | Nine Months Ended | |||||||
December 31, | December 31, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Amortization of intangible assets | $ | 4,858 | $ | 3,496 | $ | 13,983 | $ | 10,157 |
Acquisition cost and integration costs | $ | - | $ | 849 | $ | - | $ | 2,584 |
Transaction costs related to the Barings Transaction | $ | 1,370 | $ | - | $ | 6,367 | $ | - |
Changes in fair value of contingent consideration | $ | 284 | $ | - | $ | (481) | $ | - |
Acquisition-related charges included in costs of revenue and operating expense | $ | 6,512 | $ | 4,345 | $ | 19,869 | $ | 12,741 |
Accreted interest related to deferred acquisition payments | $ | - | $ | - | $ | - | $ | 267 |
Total acquisition-related charges and restructuring charges | $ | 6,512 | $ | 4,345 | $ | 19,869 | $ | 13,008 |
- Foreign currency transaction gains and losses are inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes.
- Tax adjustments reflect the tax effect of the non-GAAP adjustments using the tax rates at which these adjustments are expected to be realized for the respective periods. For fiscal year 2020, tax adjustments exclude BEAT tax impact in contemplation of a reorganization of our Indian legal entities and assume application of foreign tax credit benefits in the United States.
- Noncontrolling interest represents the minority shareholders interest of Polaris.
- Non-GAAPdiluted earnings per share is subject to rounding.
- During the three months ended December 31, 2020 and 2019 all of the 3,000,000 shares of Series A Convertible Preferred Stock were included in the calculations of both GAAP and non- GAAP diluted earnings per share as their effect would have been dilutive using the if-converted method. During the nine months ended December 31, 2020 and 2019, all of the 3,000,000 shares of Series A Convertible Preferred Stock were excluded from the calculations of GAAP diluted earnings per share as their effect would have been anti-dilutive using the if-converted method.
The following table provides the non-GAAP net income available to Virtusa common stockholders and non-GAAP dilutive weighted average shares outstanding using the if-converted method to calculate the non-GAAP diluted earnings per share for the three and nine months ended December 31, 2020:
Three Months Ended | Nine Months Ended | |||||||
December 31, | December 31, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Non-GAAP net income available to Virtusa common stockholders | $ | 33,765 | $ | 25,147 | $ | 56,717 | $ | 54,974 |
Add: Dividends and accretion on Series A Convertible Preferred Stock | $ | 1,087 | $ | 1,087 | $ | 2,175 | $ | 3,262 |
Non-GAAP net income available to Virtusa common stockholders and assumed | ||||||||
conversion | $ | 34,852 | $ | 26,234 | $ | 58,892 | $ | 58,236 |
GAAP dilutive weighted average shares outstanding | 33,897,596 | 33,458,231 | 30,665,142 | 30,700,269 | ||||
Add: Incremental effect of Series A Convertible Preferred Stock as converted | - | - | 2,000,000 | 3,000,000 | ||||
Non-GAAP dilutive weighted average shares outstanding | 33,897,596 | 33,458,231 | 32,665,142 | 33,700,269 |
- To the extent the Series A Convertible Preferred Stock is dilutive using the if-converted method, the Series A Convertible Preferred Stock is included in the weighted average shares outstanding to determine non-GAAP diluted earnings per share.
- Impact from the U.S. government enacted comprehensive tax legislation ("Tax Act")
- Other-than-temporaryimpairment of available-for-sale securities recognized in earnings
- Non-recurringfees for advisory, legal, consulting and proxy solicitation services in connection with a contested proxy solicitation with respect to our annual shareholder meeting and the election of directors. Also included is the reimbursement of fees and expenses incurred in connection with the settlement of the contested proxy solicitation.
- To the extent the Series A Convertible Preferred Stock is dilutive using the if-converted method, the Series A Convertible Preferred Stock is included in the
weighted average shares outstanding to determine non-GAAP diluted earnings per share.
(l) Loss on sale of land acquired in the Polaris Transaction that was classified as asset held for sale
Non-GAAP Financial Information
This data sheet includes certain non-GAAP financial measures as defined by Regulation G by the Securities and Exchange Commission. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures should be read in conjunction with Virtusa's financial statements prepared in accordance with GAAP.
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Virtusa Corporation published this content on 09 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2021 15:40:03 UTC.
