YODLEE INC - Total revenue of $26.0 million grew 22% year-over-year
- Subscription revenue of $22.6 million grew 24% year-over-year
- Adjusted EBITDA of $1.5 million for the second quarter
REDWOOD CITY, Calif., Aug. 10, 2015 (GLOBE NEWSWIRE) -- Yodlee, Inc. (Nasdaq:YDLE), a leading cloud-based financial platform powering dynamic innovation in digital financial services, today announced its second quarter 2015 results for the period ended June 30, 2015.
Please refer to today's announcement that the Boards of Directors of Envestnet and Yodlee have unanimously approved a definitive agreement under which Envestnet will acquire all of the shares of Yodlee in a cash and stock transaction valued at $18.88 per share, or approximately $660 million on a fully-diluted equity value basis. As Yodlee has approximately $70 million in cash and cash equivalents, the transaction reflects an enterprise value of approximately $590 million. For more on the agreement visit www.yodlee.com in the Investor Relations section.
"We had another solid quarter with recurring revenue growing at 24% and we posted a small profit. We continue to have strong momentum across all three of our channels including Financial Institutions, Yodlee Interactive and data analytics, adding 2.3 million users in the first six months of the year," said Anil Arora, Chief Executive Officer of Yodlee. "We were thrilled to announce our agreement to merge with Envestnet as we believe this transaction will transform the financial services industry by bringing two disruptive innovators together. The union of Yodlee and Envestnet will create a company uniquely positioned to improve and simplify the financial lives of billions of consumers and small business owners around the world."
Given today's transaction announcement, Yodlee will not be hosting a conference call to discuss our second quarter 2015 results.
Revenue and Users
- Total revenue was $26.0 million, an increase of 22% compared to the second quarter of 2014.
- Subscription revenue was $22.6 million, an increase of 24% compared to the second quarter of 2014.
- Professional services revenue was $3.4 million, up from $3.1 million in the second quarter of 2014.
- Average revenue per user for the second quarter is $4.57 including growth in paid users to 20.7 million
Operating Income (Loss)
- GAAP operating loss was ($2.4) million, compared to an operating income of $36 thousand in the second quarter of 2014.
- Non-GAAP operating income was $0.3 million, compared to an operating income of $0.6 million in the second quarter of 2014.
Net Income (Loss)
- GAAP net loss was ($2.7) million, compared to ($0.4) million for the second quarter of 2014. GAAP net loss per share was ($0.09), based on 29.9 million basic weighted average common shares outstanding, compared to a GAAP net loss per share of ($0.05) for the second quarter of 2014, based on 7.6 million basic weighted average common shares outstanding.
- Non-GAAP net income was $26,000, compared to a net income of $0.2 million in the second quarter of 2014. Non-GAAP net income per share was $0.00, based on 34.1 million basic weighted average common shares outstanding. Non-GAAP net income per share was $0.01 for the second quarter of 2014, based on 31.3 million basic weighted average common shares outstanding.
For the second quarter of 2014, the non-GAAP earnings per share calculation assumes conversion of our convertible preferred stock to common stock and sale of our common stock in an IPO at the beginning of the period.
Adjusted EBITDA
- Adjusted EBITDA was $1.5 million, compared to $1.4 million in the second quarter of 2014.
Balance Sheet and Cash Flow
- Cash and cash equivalents at June 30, 2015 totaled $71.4 million.
- Cash flow used in operations was ($2.4) million for second quarter 2015. This compares to cash flow used in operations of ($1.0) million for second quarter 2014.
A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
About Yodlee
Yodlee (Nasdaq:YDLE) is a leading technology and applications platform powering dynamic, cloud-based innovation for digital financial services. More than 850 companies, including 11 of the 20 largest U.S. banks and hundreds of Internet services companies, subscribe to the Yodlee platform to power personalized financial apps and services for millions of consumers. Yodlee solutions help transform the speed and delivery of financial innovation, improve digital customer experiences, and deepen customer engagement.
Yodlee is headquartered in Redwood City, CA with global offices in London and Bangalore. For more information, visit www.yodlee.com.
Non-GAAP Financial Measures
To supplement Yodlee's financial information presented in accordance with generally accepted accounting principles in the United States, or GAAP, Yodlee considers certain financial measures that are not prepared in accordance with GAAP, including non-GAAP operating income (loss), non-GAAP net income (loss) and adjusted EBITDA.
Yodlee defines non-GAAP operating income (loss) as operating income (loss) before provision for stock-based compensation expense and IP patent litigation costs, Yodlee defines non-GAAP net income (loss) as net income (loss) before provision for stock-based compensation expense and IP patent litigation costs, and Yodlee defines adjusted EBITDA as net income (loss) before provision for (benefit from) income taxes; other (income) expense, net; depreciation and amortization; stock-based compensation expense and IP patent litigation costs.
Yodlee believes that non-GAAP operating income (loss), non-GAAP net income (loss) and adjusted EBITDA, each a non-GAAP financial measure, provide investors and other users of its financial information consistency and comparability with its past financial performance and facilitates period-to-period comparisons of operations. Yodlee believes that these non-GAAP measures are useful in evaluating its operating performance compared to that of other companies in its industry, as these metrics generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance. Yodlee uses non-GAAP operating income (loss), non-GAAP net income (loss) and adjusted EBITDA in conjunction with traditional GAAP measures as part of its overall assessment of its performance, including the preparation of its annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance.
These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
Additional Information and Where to Find It
In connection with the proposed merger, Envestnet, Inc. ("Envestnet") intends to file a registration statement on Form S-4, which will include a preliminary prospectus and related materials to register the shares of Envestnet common stock to be issued in the merger, and Envestnet and Yodlee, Inc. ("Yodlee") intend to file a joint proxy statement/prospectus and other documents concerning the proposed merger with the U.S. Securities and Exchange Commission (the "SEC"). INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ENVESTNET, YODLEE AND THE PROPOSED MERGER. Investors and security holders will be able to obtain free copies of the registration statement and the joint proxy statement/prospectus (when they are available) and any other documents filed by Envestnet and Yodlee with the SEC at the SEC's website at www.sec.gov. They may also be obtained for free by contacting Envestnet Investor Relations at investor.relations@envestnet.com or by telephone at (312) 827-3940 or by contacting Yodlee Investor Relations at http://ir.yodlee.com/contactus.cfm or by telephone at (650) 980-3600. The content of any website referenced above is not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed merger or otherwise. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in the Solicitation
Each of Envestnet and Yodlee and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from their respective stockholders with respect to the transactions contemplated by the merger agreement. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Envestnet or Yodlee security holders in connection with the proposed merger will be set forth in the registration statement and the joint proxy statement/prospectus when filed with the SEC. Information regarding Yodlee's executive officers and directors is included in Yodlee's Proxy Statement for its 2015 Annual Meeting of Stockholders, filed with the SEC on April 10, 2015, and information regarding Envestnet's executive officers and directors is included in Envestnet's Proxy Statement for its 2015 Annual Meeting of Stockholders, filed with the SEC on April 13, 2015. Copies of the foregoing documents may be obtained as provided above. Certain executive officers and directors of Envestnet and Yodlee have interests in the transaction that may differ from the interests of Envestnet and Yodlee stockholders generally. These interests will be described in the joint proxy statement/prospectus when it becomes available.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Yodlee's future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, Yodlee's expectations that the combination with Envestnet will transform the financial services industry and that the union will create a company uniquely positioned to improve and simplify financial lives. Yodlee's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward looking statements. These risks include the possibility that: Envestnet is not able to successfully integrate the Company's operations; the desired synergies of the combination are not achieved; Yodlee's paid user base does not continue to grow; Yodlee is unable to secure new subscriptions and deployments of the Yodlee platform by new customers; existing customers fail to renew subscriptions or do not generate additional paid users and sources of revenue; Yodlee is unable to derive revenue from data analytics, market research services and/or revenue-sharing arrangements with partners who develop premium FinApps; and Yodlee experiences expenses that exceed its expectations. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Yodlee's filings with the Securities and Exchange Commission ("SEC"). Yodlee's SEC filings are available on the Investor Relations section of the Company's website at http://ir.yodlee.com and on the SEC's website at www.sec.gov. The forward-looking statements in this press release are based on information available to Yodlee as of the date hereof, and Yodlee disclaims any obligation to update any forward-looking statements, except as required by law.
| Yodlee, Inc. | ||||
| Condensed Consolidated Statements of Operations | ||||
| (in thousands, except per share amounts) | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Revenue: | ||||
| Subscription | $ 22,557 | $ 18,172 | $ 44,138 | $ 34,903 |
| Professional services and other | 3,398 | 3,131 | 6,426 | 6,163 |
| Total revenue | 25,955 | 21,303 | 50,564 | 41,066 |
| Cost of revenue(1): | ||||
| Subscription | 7,611 | 5,744 | 14,701 | 11,399 |
| Professional services and other | 2,319 | 2,206 | 4,670 | 4,392 |
| Total cost of revenue | 9,930 | 7,950 | 19,371 | 15,791 |
| Gross profit | 16,025 | 13,353 | 31,193 | 25,275 |
| Operating expenses(1): | ||||
| Research and development | 7,082 | 5,351 | 13,789 | 10,260 |
| Sales and marketing | 7,245 | 5,149 | 14,206 | 9,690 |
| General and administrative | 4,095 | 2,817 | 8,035 | 5,519 |
| Total operating expenses | 18,422 | 13,317 | 36,030 | 25,469 |
| Operating income (loss) | (2,397) | 36 | (4,837) | (194) |
| Other income, net | 202 | 68 | 348 | 87 |
| Income (loss) before provision for income taxes | (2,195) | 104 | (4,489) | (107) |
| Provision for income taxes | 491 | 465 | 1,098 | 842 |
| Net loss | $ (2,686) | $ (361) | $ (5,587) | $ (949) |
| Net loss per share attributable to common stockholders: | ||||
| Basic and diluted | $ (0.09) | $ (0.05) | $ (0.19) | $ (0.13) |
| Weighted average shares used to compute net loss per share attributable to common stockholders—basic and diluted | 29,904 | 7,560 | 29,641 | 7,518 |
| (1) Amounts include stock-based compensation expense as follows (in thousands): | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Cost of revenue—subscription | $ 303 | $ 57 | $ 589 | $ 99 |
| Cost of revenue—professional services and other | 168 | 42 | 278 | 64 |
| Research and development | 496 | 80 | 871 | 128 |
| Sales and marketing | 591 | 109 | 1,067 | 172 |
| General and administrative | 896 | 280 | 1,657 | 456 |
| Total stock-based compensation expense | $ 2,454 | $ 568 | $ 4,462 | $ 919 |
| Yodlee, Inc. | ||||
| Condensed Consolidated Statements of Comprehensive Loss | ||||
| (in thousands) | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net loss | $ (2,686) | $ (361) | $ (5,587) | $ (949) |
| Other comprehensive income, net of taxes: | ||||
| Foreign currency translation gain (loss) | (114) | (29) | (86) | 150 |
| Change in unrealized gain (loss) on foreign currency contracts designated as cash flow hedges | (73) | 3 | 58 | 403 |
| Total other comprehensive income (loss), net of taxes | (187) | (26) | (28) | 553 |
| Comprehensive loss | $ (2,873) | $ (387) | $ (5,615) | $ (396) |
| Yodlee, Inc. | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except par value) | ||
| (Unaudited) | ||
| June 30, | December 31, | |
| 2015 | 2014 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 71,432 | $ 73,520 |
| Accounts receivable, net of allowance for doubtful accounts of $18 and $13 as of June 30, 2015 and December 31, 2014, respectively | 15,729 | 12,229 |
| Accounts receivable—related parties | 1,571 | 3,066 |
| Prepaid expenses and other current assets | 5,642 | 4,425 |
| Total current assets | 94,374 | 93,240 |
| Property and equipment, net | 10,251 | 9,481 |
| Restricted cash | 146 | 146 |
| Goodwill | 3,068 | 3,068 |
| Other assets | 1,615 | 1,609 |
| Total assets | $ 109,454 | $ 107,544 |
| Liabilities and stockholders' equity | ||
| Current liabilities: | ||
| Accounts payable | $ 2,929 | $ 3,278 |
| Accrued liabilities | 3,533 | 2,628 |
| Accrued compensation | 6,372 | 8,927 |
| Deferred revenue, current portion | 8,289 | 6,959 |
| Capital lease obligations, current portion | 893 | 1,153 |
| Total current liabilities | 22,016 | 22,945 |
| Deferred revenue, net of current portion | 186 | 293 |
| Capital lease obligations, net of current portion | 931 | 1,243 |
| Other long-term liabilities | 3,822 | 2,986 |
| Total liabilities | 26,955 | 27,467 |
| Stockholders' equity: | ||
| Common stock, $0.001 par value—150,000 shares authorized as of June 30, 2015 and December 31, 2014; 30,311 and 29,264 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | 30 | 29 |
| Preferred stock, $0.001 par value—5,000 shares authorized as of June 30, 2015, and December 31, 2014; none issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | — | — |
| Additional paid-in capital | 447,312 | 439,275 |
| Accumulated other comprehensive loss | (2,008) | (1,979) |
| Accumulated deficit | (362,835) | (357,248) |
| Total stockholders' equity | 82,499 | 80,077 |
| Total liabilities and stockholders' equity | $ 109,454 | $ 107,544 |
| Yodlee, Inc. | ||
| Condensed Consolidated Statements of Cash Flows | ||
| (in thousands) | ||
| (Unaudited) | ||
| Six Months Ended | ||
| June 30, | ||
| 2015 | 2014 | |
| Cash flows from operating activities | ||
| Net loss | $ (5,587) | $ (949) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
| Depreciation and amortization | 2,256 | 1,570 |
| Revaluation of warrant liabilities | — | 148 |
| Stock-based compensation expense | 4,462 | 919 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | (2,006) | (1,694) |
| Prepaid expenses and other assets | (1,232) | (1,658) |
| Accounts payable | (595) | 910 |
| Accrued liabilities and other long term liabilities | 1,729 | 694 |
| Accrued compensation | (2,655) | (624) |
| Deferred revenue | 1,223 | (305) |
| Net cash used in operating activities | (2,405) | (989) |
| Cash flows from investing activities | ||
| Purchases of property and equipment | (2,671) | (2,525) |
| Net cash used in investing activities | (2,671) | (2,525) |
| Cash flows from financing activities | ||
| Proceeds from bank borrowings | — | 5,600 |
| Principal payments on bank borrowings | — | (2,880) |
| Proceeds from issuance of common stock upon exercise of stock options | 4,578 | 859 |
| Tax payments related to stock-based award activities | (875) | — |
| Principal payments on capital lease obligations | (572) | (517) |
| Equity offering costs | (143) | (946) |
| Repurchase of common stock | — | (473) |
| Net cash provided by financing activities | 2,988 | 1,643 |
| Net decrease in cash and cash equivalents | (2,088) | (1,871) |
| Cash and cash equivalents—beginning of period | 73,520 | 8,134 |
| Cash and cash equivalents—end of period | $ 71,432 | $ 6,263 |
| Supplemental disclosures of cash flow information: | ||
| Cash paid for interest | $ 66 | $ 270 |
| Cash paid for income taxes | $ 804 | $ 392 |
| Supplemental disclosures of non-cash investing and financing information: | ||
| Property and equipment financed through capital lease | $ — | $ 1,804 |
| Property and equipment purchased but not paid at period-end | $ 1,051 | $ 768 |
| Unpaid equity offering costs | $ — | $ 1,719 |
| Yodlee, Inc. | ||||
| Reconciliation of GAAP to Non-GAAP Measures | ||||
| (in thousands) | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| GAAP subscription gross profit | $ 14,946 | $ 12,428 | $ 29,437 | $ 23,504 |
| Add share-based compensation | 303 | 57 | 589 | 99 |
| Non-GAAP subscription gross profit | $ 15,249 | $ 12,485 | $ 30,026 | $ 23,603 |
| Non-GAAP subscription gross margin | 68% | 69% | 68% | 68% |
| GAAP subscription gross margin | 66% | 68% | 67% | 67% |
| GAAP professional services and other gross profit | $ 1,079 | $ 925 | $ 1,756 | $ 1,771 |
| Add share-based compensation | 168 | 42 | 278 | 64 |
| Non-GAAP professional services and other gross profit | $ 1,247 | $ 967 | $ 2,034 | $ 1,835 |
| Non-GAAP professional services and other gross margin | 37% | 31% | 32% | 30% |
| GAAP professional services and other gross margin | 32% | 30% | 27% | 29% |
| GAAP gross profit | $ 16,025 | $ 13,353 | $ 31,193 | $ 25,275 |
| Add share-based compensation | 471 | 99 | 867 | 163 |
| Non-GAAP gross profit | $ 16,496 | $ 13,452 | $ 32,060 | $ 25,438 |
| Non-GAAP gross margin | 64% | 63% | 63% | 62% |
| GAAP gross margin | 62% | 63% | 62% | 62% |
| GAAP sales and marketing | $ 7,245 | $ 5,149 | $ 14,206 | $ 9,690 |
| Less share-based compensation | (591) | (109) | (1,067) | (172) |
| Non-GAAP sales and marketing | $ 6,654 | $ 5,040 | $ 13,139 | $ 9,518 |
| Non-GAAP sales and marketing as percentage of revenue | 26% | 24% | 26% | 23% |
| GAAP sales and marketing as percentage of revenue | 28% | 24% | 28% | 24% |
| GAAP research and development | $ 7,082 | $ 5,351 | $ 13,789 | $ 10,260 |
| Less share-based compensation | (496) | (80) | (871) | (128) |
| Non-GAAP research and development | $ 6,586 | $ 5,271 | $ 12,918 | $ 10,132 |
| Non-GAAP research and development as percentage of revenue | 25% | 25% | 26% | 25% |
| GAAP research and development as percentage of revenue | 27% | 25% | 27% | 25% |
| GAAP general and administrative | $ 4,095 | $ 2,817 | $ 8,035 | $ 5,519 |
| Less share-based compensation | (896) | (280) | (1,657) | (456) |
| Less IP patent litigation costs | (258) | — | (258) | — |
| Non-GAAP general and administrative | $ 2,941 | $ 2,537 | $ 6,120 | $ 5,063 |
| Non-GAAP general and administrative as percentage of revenue | 11% | 12% | 12% | 12% |
| GAAP general and administrative as percentage of revenue | 16% | 13% | 16% | 13% |
| GAAP operating income (loss) | $ (2,397) | $ 36 | $ (4,837) | $ (194) |
| Add share-based compensation | $ 2,454 | $ 568 | $ 4,462 | $ 919 |
| Add IP patent litigation costs | 258 | — | 258 | — |
| Non-GAAP operating income (loss) | $ 315 | $ 604 | $ (117) | $ 725 |
| Non-GAAP operating margin | 1% | 3% | 0% | 2% |
| GAAP operating margin | -9% | 0% | -10% | 0% |
| GAAP net income (loss) | $ (2,686) | $ (361) | $ (5,587) | $ (949) |
| Add share-based compensation | $ 2,454 | $ 568 | $ 4,462 | $ 919 |
| Add IP patent litigation costs | 258 | — | 258 | — |
| Non-GAAP net income (loss) | $ 26 | $ 207 | $ (867) | $ (30) |
| Non-GAAP net loss per share | $ 0.00 | $ 0.01 | $ (0.03) | $ (0.00) |
| Weighted average shares used in computing GAAP loss per share attributable to common stockholders | 29,904 | 7,560 | 29,641 | 7,518 |
| Additional weighted average shares assuming: | ||||
| Conversion of preferred shares at the beginning of the period | -- | 14,445 | -- | 14,445 |
| Shares issued in the initial public offering at the beginning of the period | -- | 6,250 | -- | 6,250 |
| Shares issued upon the exercise of underwriter's option to purchase the Company's common stock at the beginning of the period | -- | 761 | -- | 761 |
| Dilutive impact of stock options | 2,591 | 1,807 | -- | -- |
| Dilutive impact of restricted stock units | 1,621 | 392 | -- | -- |
| Dilutive impact of stock warrants | -- | 113 | -- | -- |
| Shares used in computing non-GAAP loss per share | 34,116 | 31,328 | 29,641 | 28,974 |
| The following table provides a reconciliation of net income (loss) to adjusted EBITDA: | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net loss | $ (2,686) | $ (361) | $ (5,587) | $ (949) |
| Provision for income taxes | 491 | 465 | 1,098 | 842 |
| Other income, net | (202) | (68) | (348) | (87) |
| Depreciation and amortization | 1,138 | 806 | 2,256 | 1,570 |
| Stock-based compensation | 2,454 | 568 | 4,462 | 919 |
| IP patent litigation costs | 258 | — | 258 | — |
| Adjusted EBITDA | $ 1,453 | $ 1,410 | $ 2,139 | $ 2,295 |
| In addition to adjusted EBITDA, we regularly review the key metrics set forth below as we evaluate our business. | ||||
| June 30, | ||||
| 2015 | 2014 | |||
| Paid users (in thousands) | 20,658 | 16,758 | ||
| Average revenue per paid user | $ 4.57 | $ 4.53 | ||
CONTACT: Media Contact:
David Lee
Chief Marketing Officer
DLee@yodlee.com
1-650-980-3649
Investor Contact:
Sheila B. Ennis
ICR, Inc.
IR@yodlee.com
1-415-430-2073
