Exhibit 99.2
Trend Sheet for GAAP Statement of Operations
(unaudited, in thousands, except per share data)
Three Months Ended | ||||||||||||||||||||||||||||||||
July 31, | April 30, | Jan 31, | Oct 31, | July 31, | Apr 30, | Jan 31, | Oct 31, | |||||||||||||||||||||||||
2007 | 2007 | 2007 | 2006 | 2006 | 2006 | 2006 | 2005 | |||||||||||||||||||||||||
Income Statement | ||||||||||||||||||||||||||||||||
Net revenues | $ | 62,659 | $ | 60,380 | $ | 76,850 | $ | 66,003 | $ | 59,315 | $ | 56,753 | $ | 60,768 | $ | 49,529 | ||||||||||||||||
Hardware revenues | 6,199 | 2,293 | 19,890 | 13,476 | 6,503 | 1,719 | 14,135 | 6,616 | ||||||||||||||||||||||||
Cost of hardware revenues | 28,271 | 10,648 | 43,534 | 31,925 | 21,607 | 15,146 | 38,811 | 24,667 | ||||||||||||||||||||||||
Service and Technology revenues | $ | 56,460 | $ | 58,087 | $ | 56,960 | $ | 52,527 | $ | 52,812 | $ | 55,034 | $ | 46,633 | $ | 42,913 | ||||||||||||||||
Service revenues | 53,376 | 54,155 | 53,543 | 49,000 | 49,430 | 46,951 | 46,305 | 42,296 | ||||||||||||||||||||||||
Technology revenues | 3,084 | 3,932 | 3,417 | 3,527 | 3,382 | 8,083 | 328 | 617 | ||||||||||||||||||||||||
Cost of service & technology revenues | $ | 13,760 | $ | 13,662 | $ | 15,921 | $ | 13,826 | $ | 12,629 | $ | 17,801 | $ | 10,129 | $ | 8,508 | ||||||||||||||||
Cost of service revenues | 10,064 | 10,155 | 12,445 | 10,820 | 9,628 | 10,435 | 10,250 | 8,431 | ||||||||||||||||||||||||
Cost of technology revenues | 3,696 | 3,507 | 3,476 | 3,006 | 3,001 | 7,366 | (121 | ) | 77 | |||||||||||||||||||||||
Gross margin of service & technology revenues | $ | 42,700 | $ | 44,425 | $ | 41,039 | $ | 38,701 | $ | 40,183 | $ | 37,233 | $ | 36,504 | $ | 34,405 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Research and development | $ | 15,070 | $ | 14,245 | $ | 12,755 | $ | 12,221 | $ | 12,891 | $ | 12,861 | $ | 10,693 | $ | 9,712 | ||||||||||||||||
Sales and marketing | $ | 5,381 | 5,303 | 6,784 | 5,450 | 5,439 | 4,847 | 5,387 | 4,448 | |||||||||||||||||||||||
Sales and marketing, subscription acquisition costs | $ | 9,015 | 5,790 | 9,915 | 5,016 | 3,053 | 2,783 | 5,951 | 5,472 | |||||||||||||||||||||||
General and administrative | $ | 10,392 | 11,222 | 8,852 | 9,811 | 11,091 | 15,059 | 11,769 | 11,702 | |||||||||||||||||||||||
Stock-based compensation | $ | 5,242 | $ | 4,640 | $ | 3,979 | $ | 4,083 | $ | 3,563 | $ | 3,087 | $ | 337 | $ | 165 | ||||||||||||||||
Cost of services revenues | 178 | 157 | 117 | 129 | 130 | 94 | — | — | ||||||||||||||||||||||||
Cost of technology revenues | 504 | 463 | 338 | 236 | 243 | 203 | — | — | ||||||||||||||||||||||||
Research and development | 1,967 | 1,628 | 1,419 | 1,608 | 1,451 | 1,118 | 46 | (6 | ) | |||||||||||||||||||||||
Sales and marketing | 332 | 476 | 385 | 474 | 450 | 340 | 75 | 20 | ||||||||||||||||||||||||
General and administrative | 2,261 | 1,916 | 1,720 | 1,636 | 1,289 | 1,332 | 216 | 151 | ||||||||||||||||||||||||
Interest and other income (expense) | $ | 1,540 | $ | 1,333 | $ | 1,418 | $ | 1,158 | $ | 959 | $ | 1,059 | $ | 899 | $ | 816 | ||||||||||||||||
Provision for income tax | — | (8 | ) | (17 | ) | (4 | ) | (12 | ) | (19 | ) | (13 | ) | — | ||||||||||||||||||
Net income (loss) | (17,690 | ) | 835 | (19,510 | ) | (11,092 | ) | (6,448 | ) | (10,704 | ) | (21,086 | ) | (14,164 | ) | |||||||||||||||||
Net income (loss) per basic and diluted common share | $ | (0.18 | ) | $ | 0.01 | $ | (0.20 | ) | $ | (0.12 | ) | $ | (0.07 | ) | $ | (0.13 | ) | $ | (0.25 | ) | $ | (0.17 | ) | |||||||||
Weighted average common shares outstanding—basic | 97,084 | 96,829 | 96,415 | 91,930 | 85,978 | 85,134 | 84,643 | 84,201 | ||||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 97,084 | 98,047 | 96,415 | 91,930 | 85,978 | 85,134 | 84,643 | 84,201 | ||||||||||||||||||||||||
Balance Sheet & Cash Flow | ||||||||||||||||||||||||||||||||
Cash & cash equivalents, and short-term investments | $ | 97,629 | $ | 101,784 | $ | 128,765 | $ | 106,965 | $ | 75,118 | $ | 92,351 | $ | 104,213 | $ | 90,456 | ||||||||||||||||
Net cash provided by (used in) operating activities(YTD) | (29,906 | ) | (26,213 | ) | (33,507 | ) | (55,212 | ) | (32,796 | ) | (14,150 | ) | 3,425 | (12,262 | ) |
Trend Sheet for Non-GAAP Statement of Operations
(including Non-GAAP Net loss per share) excluding stock based compensation(1)
(unaudited, in thousands, except per share data)
Three Months Ended | ||||||||||||||||||||||||||||||||
July 31, 2007 | April 30, 2007 | Jan 31, 2007 | Oct 31, 2006 | July 31, 2006 | Apr 30, 2006 | Jan 31, 2006 | Oct 31, 2005 | |||||||||||||||||||||||||
Income Statement | ||||||||||||||||||||||||||||||||
Net revenues | $ | 62,659 | $ | 60,380 | $ | 76,850 | $ | 66,003 | $ | 59,315 | $ | 56,753 | $ | 60,768 | $ | 49,529 | ||||||||||||||||
Hardware revenues | 6,199 | 2,293 | 19,890 | 13,476 | 6,503 | 1,719 | 14,135 | 6,616 | ||||||||||||||||||||||||
Cost of hardware revenues | 28,271 | 10,648 | 43,534 | 31,925 | 21,607 | 15,146 | 38,811 | 24,667 | ||||||||||||||||||||||||
Service and Technology revenues | $ | 56,460 | $ | 58,087 | $ | 56,960 | $ | 52,527 | $ | 52,812 | $ | 55,034 | $ | 46,633 | $ | 42,913 | ||||||||||||||||
Service revenues | 53,376 | 54,155 | 53,543 | 49,000 | 49,430 | 46,951 | 46,305 | 42,296 | ||||||||||||||||||||||||
Technology revenues | 3,084 | 3,932 | 3,417 | 3,527 | 3,382 | 8,083 | 328 | 617 | ||||||||||||||||||||||||
Cost of service & technology revenues * | $ | 13,078 | $ | 13,042 | $ | 15,466 | $ | 13,461 | $ | 12,256 | $ | 17,504 | $ | 10,129 | $ | 8,508 | ||||||||||||||||
Cost of service revenues * | 9,886 | 9,998 | 12,328 | 10,691 | 9,498 | 10,341 | 10,250 | 8,431 | ||||||||||||||||||||||||
Cost of technology revenues * | 3,192 | 3,044 | 3,138 | 2,770 | 2,758 | 7,163 | (121 | ) | 77 | |||||||||||||||||||||||
Gross margin of service & technology revenues * | $ | 43,382 | $ | 45,045 | $ | 41,494 | $ | 39,066 | $ | 40,556 | $ | 37,530 | $ | 36,504 | $ | 34,405 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Research and development * | $ | 13,103 | $ | 12,617 | $ | 11,336 | $ | 10,613 | $ | 11,440 | $ | 11,743 | $ | 10,647 | $ | 9,718 | ||||||||||||||||
Sales and marketing * | 5,049 | 4,827 | 6,399 | 4,976 | 4,989 | 4,507 | 5,312 | 4,428 | ||||||||||||||||||||||||
Sales and marketing, subscription acquisition costs | 9,015 | 5,790 | 9,915 | 5,016 | 3,053 | 2,783 | 5,951 | 5,472 | ||||||||||||||||||||||||
General and administrative * | 8,131 | 9,306 | 7,132 | 8,175 | 9,802 | 13,727 | 11,553 | 11,551 | ||||||||||||||||||||||||
Stock-based compensation | $ | 5,242 | $ | 4,640 | $ | 3,979 | $ | 4,083 | $ | 3,563 | $ | 3,087 | $ | 337 | $ | 165 | ||||||||||||||||
Cost of services revenues | 178 | 157 | 117 | 129 | 130 | 94 | — | — | ||||||||||||||||||||||||
Cost of technology revenues | 504 | 463 | 338 | 236 | 243 | 203 | — | — | ||||||||||||||||||||||||
Research and development | 1,967 | 1,628 | 1,419 | 1,608 | 1,451 | 1,118 | 46 | (6 | ) | |||||||||||||||||||||||
Sales and marketing | 332 | 476 | 385 | 474 | 450 | 340 | 75 | 20 | ||||||||||||||||||||||||
General and administrative | 2,261 | 1,916 | 1,720 | 1,636 | 1,289 | 1,332 | 216 | 151 | ||||||||||||||||||||||||
Interest and other income (expense) | $ | 1,540 | $ | 1,333 | $ | 1,418 | $ | 1,158 | $ | 959 | $ | 1,059 | $ | 899 | $ | 816 | ||||||||||||||||
Provision for income tax | — | (8 | ) | (17 | ) | (4 | ) | (12 | ) | (19 | ) | (13 | ) | — | ||||||||||||||||||
Net income (loss) | (12,448 | ) | 5,475 | (15,531 | ) | (7,009 | ) | (2,885 | ) | (7,617 | ) | (20,749 | ) | (13,999 | ) | |||||||||||||||||
Net income (loss) per basic and diluted common share | $ | (0.13 | ) | $ | 0.06 | $ | (0.16 | ) | $ | (0.08 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | (0.25 | ) | $ | (0.17 | ) | |||||||||
Weighted average common shares outstanding—basic | 97,084 | 96,829 | 96,415 | 91,930 | 85,978 | 85,134 | 84,643 | 84,201 | ||||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 97,084 | 98,047 | 96,415 | 91,930 | 85,978 | 85,134 | 84,643 | 84,201 |
* | Excludes stock-based compensation. |
(1) | This presentation is not prepared under a comprehensive set of accounting rules or principles such as GAAP. See attached reconciliation of Non-GAAP Statement of Operations excluding stock based compensation and related note for further explanation of this non-GAAP financial measure presented herein. |
TiVo Inc.
Reconciliation of Non-GAAP Statement of Operations (including Non-GAAP Net Loss and Non-GAAP Net Loss Per Share)
of TiVo Inc. to GAAP Statement of Operations (including GAAP Net Loss and GAAP Net Loss Per Share) of TiVo Inc.
FY 2008 Q1-Q2.
excluding Stock-Based Compensation Expense(1)
(unaudited, in thousands except per share data)
FY 2008 Reconciliation by Quarter | ||||||||||||||||||||||||
Q2’08 GAAP | Non-GAAP Adjustments | Q2’08 Non-GAAP | Q1’08 GAAP | Non-GAAP Adjustments | Q1’08 Non-GAAP | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Service revenues | $ | 53,376 | $ | — | $ | 53,376 | $ | 54,155 | $ | — | $ | 54,155 | ||||||||||||
Technology revenues | 3,084 | — | 3,084 | 3,932 | — | 3,932 | ||||||||||||||||||
Hardware revenues | 6,199 | — | 6,199 | 2,293 | — | 2,293 | ||||||||||||||||||
Net revenues | 62,659 | — | 62,659 | 60,380 | — | 60,380 | ||||||||||||||||||
Cost of revenues | ||||||||||||||||||||||||
Cost of service revenues | 10,064 | (178 | ) | 9,886 | 10,155 | (157 | ) | 9,998 | ||||||||||||||||
Cost of technology revenues | 3,696 | (504 | ) | 3,192 | 3,507 | (463 | ) | 3,044 | ||||||||||||||||
Cost of hardware revenues | 28,271 | — | 28,271 | 10,648 | — | 10,648 | ||||||||||||||||||
Total cost of revenues | 42,031 | (682 | ) | 41,349 | 24,310 | (620 | ) | 23,690 | ||||||||||||||||
Gross margin | 20,628 | 682 | 21,310 | 36,070 | 620 | 36,690 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Research and development | 15,070 | (1,967 | ) | 13,103 | 14,245 | (1,628 | ) | 12,617 | ||||||||||||||||
Sales and marketing | 5,381 | (332 | ) | 5,049 | 5,303 | (476 | ) | 4,827 | ||||||||||||||||
Sales and marketing, subscription acquisition costs | 9,015 | — | 9,015 | 5,790 | — | 5,790 | ||||||||||||||||||
General and administrative | 10,392 | (2,261 | ) | 8,131 | 11,222 | (1,916 | ) | 9,306 | ||||||||||||||||
Income (loss) from operations | (19,230 | ) | 5,242 | (13,988 | ) | (490 | ) | 4,640 | 4,150 | |||||||||||||||
Interest income | 1,331 | — | 1,331 | 1,416 | — | 1,416 | ||||||||||||||||||
Interest expense and other | 209 | — | 209 | (83 | ) | — | (83 | ) | ||||||||||||||||
Income before income taxes | (17,690 | ) | 5,242 | (12,448 | ) | 843 | 4,640 | 5,483 | ||||||||||||||||
Provision for income taxes | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Net income | $ | (17,690 | ) | $ | 5,242 | $ | (12,448 | ) | $ | 835 | $ | 4,640 | $ | 5,475 | ||||||||||
Net income per common share basic and diluted | $ | (0.18 | ) | $ | — | $ | (0.13 | ) | $ | 0.01 | $ | — | $ | 0.06 | ||||||||||
Weighted average common shares used to calculate basic net income (loss) per share | 97,084,184 | — | 97,084,184 | 96,829 | — | 96,829 | ||||||||||||||||||
Weighted average common shares used to calculate diluted net income (loss) per share | 97,084,184 | — | 97,084,184 | 98,047 | — | 98,047 | ||||||||||||||||||
(1) | See related note attached hereto for further information on this Non-GAAP reconciliation. |
TiVo Inc.
Reconciliation of Non-GAAP Statement of Operations (including Non-GAAP Net Loss and Non-GAAP Net Loss Per Share) of TiVo Inc. to
GAAP Statement of Operations (including GAAP Net Loss and GAAP Net Loss Per Share) of TiVo Inc.
FY 2007 Q1 through Q4
excluding Stock-Based Compensation Expense(1)
(unaudited, in thousands except per share data)
FY 2007 Reconciliation by Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||
Q4’07 GAAP | Non-GAAP Adjustments | Q4’07 Non-GAAP | Q3’07 GAAP | Non-GAAP Adjustments | Q3’07 Non-GAAP | Q2’07 GAAP | Non-GAAP Adjustments | Q2’07 Non-GAAP | Q1’07 GAAP | Non-GAAP Adjustments | Q1’07 Non-GAAP | |||||||||||||||||||||||||||||||||||||
(unaudited, in thousands except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues | $ | 53,543 | $ | — | $ | 53,543 | $ | 49,000 | $ | — | $ | 49,000 | $ | 49,430 | $ | — | $ | 49,430 | $ | 46,951 | $ | — | $ | 46,951 | ||||||||||||||||||||||||
Technology revenues | 3,417 | — | 3,417 | 3,527 | — | 3,527 | 3,382 | — | 3,382 | 8,083 | — | 8,083 | ||||||||||||||||||||||||||||||||||||
Hardware revenues | 19,890 | — | 19,890 | 13,476 | — | 13,476 | 6,503 | — | 6,503 | 1,719 | — | 1,719 | ||||||||||||||||||||||||||||||||||||
Net revenues | 76,850 | — | 76,850 | 66,003 | — | 66,003 | 59,315 | — | 59,315 | 56,753 | — | 56,753 | ||||||||||||||||||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of service revenues | 12,445 | (117 | ) | 12,328 | 10,820 | (129 | ) | 10,691 | 9,628 | (130 | ) | 9,498 | 10,435 | (94 | ) | 10,341 | ||||||||||||||||||||||||||||||||
Cost of technology revenues | 3,476 | (338 | ) | 3,138 | 3,006 | (236 | ) | 2,770 | 3,001 | (243 | ) | 2,758 | 7,366 | (203 | ) | 7,163 | ||||||||||||||||||||||||||||||||
Cost of hardware revenues | 43,534 | — | 43,534 | 31,925 | — | 31,925 | 21,607 | — | 21,607 | 15,146 | — | 15,146 | ||||||||||||||||||||||||||||||||||||
Total cost of revenues | 59,455 | (455 | ) | 59,000 | 45,751 | (365 | ) | 45,386 | 34,236 | (373 | ) | 33,863 | 32,947 | (297 | ) | 32,650 | ||||||||||||||||||||||||||||||||
Gross margin | 17,395 | 455 | 17,850 | 20,252 | 365 | 20,617 | 25,079 | 373 | 25,452 | 23,806 | 297 | 24,103 | ||||||||||||||||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | 12,755 | (1,419 | ) | 11,336 | 12,221 | (1,608 | ) | 10,613 | 12,891 | (1,451 | ) | 11,440 | 12,861 | (1,118 | ) | 11,743 | ||||||||||||||||||||||||||||||||
Sales and marketing | 6,784 | (385 | ) | 6,399 | 5,450 | (474 | ) | 4,976 | 5,439 | (450 | ) | 4,989 | 4,847 | (340 | ) | 4,507 | ||||||||||||||||||||||||||||||||
Sales and marketing, subscription acquisition costs | 9,915 | — | 9,915 | 5,016 | — | 5,016 | 3,053 | — | 3,053 | 2,783 | — | 2,783 | ||||||||||||||||||||||||||||||||||||
General and administrative | 8,852 | (1,720 | ) | 7,132 | 9,811 | (1,636 | ) | 8,175 | 11,091 | (1,289 | ) | 9,802 | 15,059 | (1,332 | ) | 13,727 | ||||||||||||||||||||||||||||||||
Loss from operations | (20,911 | ) | 3,979 | (16,932 | ) | (12,246 | ) | 4,083 | (8,163 | ) | (7,395 | ) | 3,563 | (3,832 | ) | (11,744 | ) | 3,087 | (8,657 | ) | ||||||||||||||||||||||||||||
Interest income | 1,426 | — | 1,426 | 1,291 | — | 1,291 | 988 | — | 988 | 1,062 | — | 1,062 | ||||||||||||||||||||||||||||||||||||
Interest expense and other | (8 | ) | — | (8 | ) | (133 | ) | — | (133 | ) | (29 | ) | — | (29 | ) | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||||||
Loss before income taxes | (19,493 | ) | 3,979 | (15,514 | ) | (11,088 | ) | 4,083 | (7,005 | ) | (6,436 | ) | 3,563 | (2,873 | ) | (10,685 | ) | 3,087 | (7,598 | ) | ||||||||||||||||||||||||||||
Provision for income taxes | (17 | ) | — | (17 | ) | (4 | ) | — | (4 | ) | (12 | ) | — | (12 | ) | (19 | ) | — | (19 | ) | ||||||||||||||||||||||||||||
Net Loss | $ | (19,510 | ) | $ | 3,979 | $ | (15,531 | ) | $ | (11,092 | ) | $ | 4,083 | $ | (7,009 | ) | $ | (6,448 | ) | $ | 3,563 | $ | (2,885 | ) | $ | (10,704 | ) | $ | 3,087 | $ | (7,617 | ) | ||||||||||||||||
Net loss per common share basic and diluted | $ | (0.20 | ) | $ | — | $ | (0.16 | ) | $ | (0.12 | ) | $ | — | $ | (0.08 | ) | $ | (0.07 | ) | $ | — | $ | (0.03 | ) | $ | (0.13 | ) | $ | — | $ | (0.09 | ) | ||||||||||||||||
Weighted average common shares used to calculate basic and diluted net loss per share | 96,415 | — | 96,415 | 91,930 | — | 91,930 | 85,978 | — | 85,978 | 85,134 | — | 85,134 | ||||||||||||||||||||||||||||||||||||
(1) | See related note attached hereto for further information on this Non-GAAP reconciliation. |
TiVo Inc.
Reconciliation of Non-GAAP Statement of Operations (including Non-GAAP Net Loss and Non-GAAP Net Loss Per Share)
of TiVo Inc. to GAAP Statement of Operations (including GAAP Net Loss and GAAP Net Loss Per Share) of TiVo Inc.
FY 2006 Q3 through Q4
excluding Stock-Based Compensation Expense(1)
(unaudited, in thousands except per share data)
FY 2006 Reconciliation by Quarter | ||||||||||||||||||||||||
Q4’06 GAAP | Non-GAAP Adjustments | Q4’06 Non-GAAP | Q3’06 GAAP | Non-GAAP Adjustments | Q3’06 Non-GAAP | |||||||||||||||||||
Adjusted | ||||||||||||||||||||||||
(unaudited, in thousands except per share data) | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Service revenues | $ | 46,305 | $ | — | $ | 46,305 | $ | 42,296 | $ | — | $ | 42,296 | ||||||||||||
Technology revenues | 328 | — | 328 | 617 | — | 617 | ||||||||||||||||||
Hardware revenues | 14,135 | — | 14,135 | 6,616 | — | 6,616 | ||||||||||||||||||
Net revenues | 60,768 | — | 60,768 | 49,529 | — | 49,529 | ||||||||||||||||||
Cost of revenues | ||||||||||||||||||||||||
Cost of service revenues | 10,250 | — | 10,250 | 8,431 | — | 8,431 | ||||||||||||||||||
Cost of technology revenues | (121 | ) | — | (121 | ) | 77 | — | 77 | ||||||||||||||||
Cost of hardware revenues | 38,811 | — | 38,811 | 24,667 | — | 24,667 | ||||||||||||||||||
Total cost of revenues | 48,940 | — | 48,940 | 33,175 | — | 33,175 | ||||||||||||||||||
Gross margin | 11,828 | — | 11,828 | 16,354 | — | 16,354 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Research and development | 10,693 | (46 | ) | 10,647 | 9,712 | 6 | 9,718 | |||||||||||||||||
Sales and marketing | 5,387 | (75 | ) | 5,312 | 4,448 | (20 | ) | 4,428 | ||||||||||||||||
Sales and marketing, subscription acquisition costs | 5,951 | — | 5,951 | 5,472 | — | 5,472 | ||||||||||||||||||
General and administrative | 11,769 | (216 | ) | 11,553 | 11,702 | (151 | ) | 11,551 | ||||||||||||||||
Loss from operations | (21,972 | ) | 337 | (21,635 | ) | (14,980 | ) | 165 | (14,815 | ) | ||||||||||||||
Interest income | 900 | — | 900 | 826 | — | 826 | ||||||||||||||||||
Interest expense and other | (1 | ) | — | (1 | ) | (10 | ) | — | (10 | ) | ||||||||||||||
Loss before income taxes | (21,073 | ) | 337 | (20,736 | ) | (14,164 | ) | 165 | (13,999 | ) | ||||||||||||||
Provision for income taxes | (13 | ) | — | (13 | ) | — | — | — | ||||||||||||||||
Net Loss | $ | (21,086 | ) | $ | 337 | $ | (20,749 | ) | $ | (14,164 | ) | $ | 165 | $ | (13,999 | ) | ||||||||
Net loss per common share basic and diluted | $ | (0.25 | ) | $ | — | $ | (0.25 | ) | $ | (0.17 | ) | $ | — | $ | (0.17 | ) | ||||||||
Weighted average common shares used to calculate basic and diluted net loss per share | 84,643 | — | 84,643 | 84,201 | — | 84,201 | ||||||||||||||||||
(1) | See related note attached hereto for further information on this Non-GAAP reconciliation. |
Note to Trended Non-GAAP Statement of Operations Excluding Stock-Based Compensation Expense.
These FY08 Q2 Key Financial Metric Trend Sheets include the Non-GAAP Statement of Operations adjusted to exclude stock-based compensation expense from the related GAAP line items, including non-GAAP loss from operations. We use these non-GAAP financial measures for internal managerial purposes and to facilitate period-to-period comparisons. These non-GAAP financial measures are used in addition to and in conjunction with our results presented in accordance with GAAP. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to loss from operations, and net loss and net loss per share calculated in accordance with generally accepted accounting principles.
In addition, because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation enhances the ability of management and investors to compare our core operating results over multiple periods. We do not use stock-based compensation expense in our internal measures. A limitation associated with these non-GAAP measures is that they do not include any stock-based compensation expense related to hiring, retaining, and incentivizing the Company’s workforce.
Trend Sheet for Non-GAAP Key Financial Metrics(1)
(unaudited, in thousands except per share data)
Three Months Ended | ||||||||||||||||||||||||||||||||
July 31, 2007 | Apr 30, 2007 | Jan 31, 2007 | Oct 31, 2006 | July 31, 2006 | Apr 30, 2006 | Jan 31, 2006 | Oct 31, 2005 | |||||||||||||||||||||||||
Reconciliation to EBITDA and Adjusted EBIDTA | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | (17,690 | ) | $ | 835 | $ | (19,510 | ) | $ | (11,092 | ) | $ | (6,448 | ) | $ | (10,704 | ) | $ | (21,086 | ) | $ | (14,164 | ) | |||||||||
Add back: | ||||||||||||||||||||||||||||||||
Depreciation & amortization | 2,586 | 2,620 | 1,944 | 2,217 | 1,868 | 1,730 | 1,757 | 1,609 | ||||||||||||||||||||||||
Interest income & expense | (1,324 | ) | (1,400 | ) | (1,423 | ) | (1,246 | ) | (988 | ) | (1,060 | ) | (898 | ) | (816 | ) | ||||||||||||||||
Provision for income tax | — | 8 | 17 | 4 | 12 | 19 | 13 | — | ||||||||||||||||||||||||
EBITDA | $ | (16,428 | ) | $ | 2,063 | $ | (18,972 | ) | $ | (10,117 | ) | $ | (5,556 | ) | $ | (10,015 | ) | $ | (20,214 | ) | $ | (13,371 | ) | |||||||||
Stock-based compensation | 5,242 | 4,640 | 3,979 | 4,083 | 3,563 | 3,087 | 337 | 165 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | (11,186 | ) | $ | 6,703 | $ | (14,993 | ) | $ | (6,034 | ) | $ | (1,993 | ) | $ | (6,928 | ) | $ | (19,877 | ) | $ | (13,206 | ) | |||||||||
Subscription Metrics | ||||||||||||||||||||||||||||||||
TiVo-Owned subscription gross additions | 41 | 57 | 163 | 101 | 74 | 91 | 221 | 92 | ||||||||||||||||||||||||
TiVo-Owned subscription cancellations | (60 | ) | (56 | ) | (62 | ) | (48 | ) | (44 | ) | (40 | ) | (38 | ) | (37 | ) | ||||||||||||||||
TiVo-Owned churn rate per month | -1.2 | % | -1.1 | % | -1.2 | % | -1.0 | % | -0.9 | % | -0.9 | % | -0.9 | % | -1.0 | % | ||||||||||||||||
TiVo-Owned net additions (losses) | (19 | ) | 1 | 101 | 53 | 30 | 51 | 183 | 55 | |||||||||||||||||||||||
TiVo-Owned cumulative subscriptions | 1,708 | 1,727 | 1,726 | 1,625 | 1,572 | 1,542 | 1,491 | 1,308 | ||||||||||||||||||||||||
% of TiVo-Owned cumulative subscriptions paying recurring fees | 59 | % | 59 | % | 58 | % | 55 | % | 53 | % | 52 | % | 51 | % | 51 | % | ||||||||||||||||
Fully Amortized Active Lifetime Subscriptions | 180 | 179 | 165 | 138 | 129 | 122 | 100 | 89 | ||||||||||||||||||||||||
DIRECTV Net additions (losses) | (126 | ) | (103 | ) | (91 | ) | (37 | ) | (29 | ) | 2 | 173 | 379 | |||||||||||||||||||
Total subscription net additions (losses) | (145 | ) | (102 | ) | 10 | 16 | 1 | 53 | 356 | 434 | ||||||||||||||||||||||
Total cumulative subscriptions | 4,197 | 4,342 | 4,444 | 4,434 | 4,418 | 4,417 | 4,364 | 4,008 | ||||||||||||||||||||||||
TiVo-Owned ARPU & Subscription Acquisition Costs | ||||||||||||||||||||||||||||||||
TiVo-Owned-related service revenues | 46,823 | 46,995 | 45,091 | 41,427 | 41,234 | 38,942 | 36,703 | 33,659 | ||||||||||||||||||||||||
TiVo-Owned average subscriptions | 1,719 | 1,729 | 1,673 | 1,596 | 1,559 | 1,520 | 1,388 | 1,275 | ||||||||||||||||||||||||
TiVo-Owned ARPU per month | $ | 9.08 | $ | 9.06 | $ | 8.98 | $ | 8.65 | $ | 8.82 | $ | 8.54 | $ | 8.81 | $ | 8.80 | ||||||||||||||||
TiVo-Owned total acquisition costs | 31,087 | 14,145 | 33,559 | 23,465 | 18,157 | 16,210 | 30,627 | 23,523 | ||||||||||||||||||||||||
TiVo-Owned subscription gross additions | 41 | 57 | 163 | 101 | 74 | 91 | 221 | 92 | ||||||||||||||||||||||||
TiVo-Owned subscription acquisition costs | 758 | 248 | 206 | 232 | 245 | 178 | 139 | 256 | ||||||||||||||||||||||||
DIRECTV ARPU | ||||||||||||||||||||||||||||||||
DIRECTV-related service revenues | 6,553 | 7,160 | 8,452 | 7,573 | 8,196 | 8,009 | 9,602 | 8,637 | ||||||||||||||||||||||||
DIRECTV average subscriptions | 2,554 | 2,668 | 2,767 | 2,837 | 2,858 | 2,881 | 2,818 | 2,505 | ||||||||||||||||||||||||
DIRECTV ARPU per month | $ | 0.86 | $ | 0.89 | $ | 1.02 | $ | 0.89 | $ | 0.96 | $ | 0.93 | $ | 1.14 | $ | 1.15 |
(1) | This presentation is not prepared under a comprehensive set of accounting rules or principles such as GAAP. See attached reconciliation of Non-GAAP Statement of Operations excluding stock based compensation and related note for further explanation of this non-GAAP financial measure presented herein. |
EBITDA and Adjusted EBITDA Results.TiVo’s “EBITDA” means income before interest income and expense, provision for income taxes and depreciation and amortization. TiVo’s “Adjusted EBITDA” is EBITDA less expense for stock-based compensation. EBITDA and
Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles, which we refer to as GAAP. TiVo’s EBITDA and Adjusted EBITDA results are calculated by adjusting GAAP net income to exclude the effects of items that management believes are not directly related to the underlying performance of TiVo’s core business operations. A table reconciling TiVo’s EBITDA and Adjusted EBITDA to GAAP net income is included with the condensed consolidated financial statements attached to this release. We have presented EBITDA and Adjusted EBITDA solely as supplemental disclosure because we believe they allow for a more complete analysis of our results of operations and we believe that EBITDA and Adjusted EBITDA are useful to investors because EBITDA and Adjusted EBITDA are commonly used to analyze companies on the basis of operating performance. In addition, because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation enhances the ability of management and investors to compare our core operating results over multiple periods. We do not use stock-based compensation expense in our internal measures. A limitation associated with these non-GAAP measures is that they do not include any stock-based compensation expense related to hiring, retaining, and incentivizing the Company’s workforce. EBITDA and Adjusted EBITDA are not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of operating performance as determined in accordance with GAAP.
Three Months Ended | ||||||||||||||||||||||||
(Subscriptions in thousands) | July 31, 2007 | April 30, 2007 | Jan 31, 2006 | Oct 31, 2006 | July 31, 2006 | April 30, 2006 | Jan 31, 2005 | Oct 31, 2005 | ||||||||||||||||
TiVo-Owned Subscription Gross Additions: | 41 | 57 | 163 | 101 | 74 | 91 | 221 | 92 | ||||||||||||||||
Subscription Net Additions/(Losses): | ||||||||||||||||||||||||
TiVo-Owned | (19 | ) | 1 | 101 | 53 | 30 | 51 | 183 | 55 | |||||||||||||||
DIRECTV | (126 | ) | (103 | ) | (91 | ) | (37 | ) | (29 | ) | 2 | 173 | 379 | |||||||||||
Total Subscription Net Additions | (145 | ) | (102 | ) | 10 | 16 | 1 | 53 | 356 | 434 | ||||||||||||||
Cumulative Subscriptions: | ||||||||||||||||||||||||
TiVo-Owned | 1,708 | 1,727 | 1,726 | 1,625 | 1,572 | 1,542 | 1,491 | 1,308 | ||||||||||||||||
DIRECTV | 2,489 | 2,615 | 2,718 | 2,809 | 2,846 | 2,875 | 2,873 | 2,700 | ||||||||||||||||
Total Cumulative Subscriptions | 4,197 | 4,342 | 4,444 | 4,434 | 4,418 | 4,417 | 4,364 | 4,008 | ||||||||||||||||
Fully Amortized Active Lifetime Subscriptions | 180 | 179 | 165 | 138 | 129 | 122 | 100 | 89 | ||||||||||||||||
% of TiVo-Owned Cumulative Subscriptions paying recurring fees | 59 | % | 59 | % | 58 | % | 55 | % | 53 | % | 52 | % | 51 | % | 51 | % |
Three Months Ended | ||||||||||||||||||||||||
(Subscriptions in thousands) | July 31, 2007 | April 30, 2007 | Jan 31, 2006 | Oct 31, 2006 | July 31, 2006 | April 30, 2006 | Jan 31, 2005 | Oct 31, 2005 | ||||||||||||||||
Average TiVo-Owned subscriptions | 1,719 | 1,729 | 1,672 | 1,596 | 1,559 | 1,520 | 1,388 | 1,275 | ||||||||||||||||
TiVo-Owned subscription cancellations | (60 | ) | (56 | ) | (62 | ) | (48 | ) | (44 | ) | (40 | ) | (38 | ) | (37 | ) | ||||||||
TiVo-Owned Churn Rate per month | -1.2 | % | -1.1 | % | -1.2 | % | -1.0 | % | -0.9 | % | -0.9 | % | -0.9 | % | -1.0 | % | ||||||||
TiVo-Owned Churn Rate per Month.Management reviews this metric, and believes it may be useful to investors, in order to evaluate our ability to retain existing TiVo-Owned subscriptions (including both monthly and product lifetime subscriptions) by providing services that are competitive in the market. Management believes factors such as service enhancements, service commitments, higher customer satisfaction, and improved customer support may improve this metric. Conversely, management believes factors such as increased competition, lack of competitive service features such as high definition television recording capabilities for our low cost product offerings, and increased price sensitivity may cause our TiVo-Owned Churn Rate per month to increase.
We define the TiVo-Owned Churn Rate per month as the total TiVo-Owned subscription cancellations in the period divided by the Average TiVo-Owned subscriptions for the period (including both monthly and product lifetime subscriptions), which then is divided by the number of months in the period. We calculate Average TiVo-Owned subscriptions for the period by adding the average TiVo-Owned subscriptions for each month and dividing by the number of months in the period. We calculate the average TiVo-Owned subscriptions for each month by adding the beginning and ending subscriptions for the month and dividing by two. We are not aware of any uniform standards for calculating churn and caution that our presentation may not be consistent with that of other companies.
Three Months Ended | ||||||||||||||||||||||||||||||||
Subscription Acquisition Costs | July 31, 2007 | April 30, 2007 | Jan 31, 2006 | Oct 31, 2006 | Jul 31, 2006 | April 30, 2006 | Jan 31, 2005 | Oct 31, 2005 | ||||||||||||||||||||||||
(In thousands, except SAC) | ||||||||||||||||||||||||||||||||
Sales and marketing, subscription acquisition costs | $ | 9,015 | $ | 5,790 | $ | 9,915 | $ | 5,016 | $ | 3,053 | $ | 2,783 | $ | 5,951 | $ | 5,472 | ||||||||||||||||
Hardware revenues | (6,199 | ) | (2,293 | ) | (19,890 | ) | (13,476 | ) | (6,503 | ) | (1,719 | ) | (14,135 | ) | (6,616 | ) | ||||||||||||||||
Cost of hardware revenues | 28,271 | 10,648 | 43,534 | 31,925 | 21,607 | 15,146 | 38,811 | 24,667 | ||||||||||||||||||||||||
Total Acquisition Costs | 31,087 | 14,145 | 33,559 | 23,465 | 18,157 | 16,210 | 30,627 | 23,523 | ||||||||||||||||||||||||
TiVo-Owned Subscription Gross Additions | �� | 41 | 57 | 163 | 101 | 74 | 91 | 221 | 92 | |||||||||||||||||||||||
Subscription Acquisition Costs (SAC) | $ | 758 | $ | 248 | $ | 206 | $ | 232 | $ | 245 | $ | 178 | $ | 139 | $ | 256 | ||||||||||||||||
Subscription Acquisition Cost or SAC.Management reviews this metric, and believes it may be useful to investors, in order to evaluate trends in the efficiency of our marketing programs and subscription acquisition strategies. We define SAC as our total acquisition costs for a given period divided by TiVo-Owned subscription gross additions for the same period. In the first fiscal quarter of 2008, we revised our definition of total acquisition costs. We now define total acquisition costs as sales and marketing, subscription acquisition costs less net hardware revenues (defined as gross hardware revenues less rebates, revenue share and market development funds paid to retailers) plus cost of hardware revenues. The sales and marketing, subscription acquisition costs line item includes advertising expenses and promotion-related expenses directly related to subscription acquisition activities, but does not include expenses related to advertising sales. We do not include third parties subscription gross additions, such as DIRECTV gross additions with TiVo subscriptions, in our calculation of SAC because we incur limited or no acquisition costs for these new subscriptions. We are not aware of any uniform standards for calculating total acquisition costs or SAC and caution that our presentation may not be consistent with that of other companies.
Three Months Ended | ||||||||||||||||||||||||||||||||
TiVo-Owned Average Revenue per Subscription | July 31, 2007 | April 30, 2007 | Jan 31, 2006 | Oct 31, 2006 | July 31, 2006 | April 30, 2006 | Jan 31, 2005 | Oct 31, 2005 | ||||||||||||||||||||||||
(In thousands, except ARPU) | ||||||||||||||||||||||||||||||||
Total Service revenues | 53,376 | 54,155 | 53,543 | 49,000 | 49,430 | 46,951 | 46,305 | 42,296 | ||||||||||||||||||||||||
Less: DIRECTV-related service revenues | (6,553 | ) | (7,160 | ) | (8,452 | ) | (7,573 | ) | (8,196 | ) | (8,009 | ) | (9,602 | ) | (8,637 | ) | ||||||||||||||||
TiVo-Ow ned-related service revenues | 46,823 | 46,995 | 45,091 | 41,427 | 41,234 | 38,942 | 36,703 | 33,659 | ||||||||||||||||||||||||
Average TiVo-Ow ned revenues per month | 15,608 | 15,665 | 15,030 | 13,809 | 13,745 | 12,981 | 12,234 | 11,220 | ||||||||||||||||||||||||
Average TiVo-Ow ned per month subscriptions | 1,719 | 1,729 | 1,673 | 1,596 | 1,559 | 1,520 | 1,388 | 1,275 | ||||||||||||||||||||||||
TiVo-Ow ned ARPU per month | $ | 9.08 | $ | 9.06 | $ | 8.98 | $ | 8.65 | $ | 8.82 | $ | 8.54 | $ | 8.81 | $ | 8.80 | ||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
DIRECTV Average Revenue per Subscription | July 31, 2007 | April 30, 2007 | Jan 31, 2006 | Oct 31, 2006 | July 31, 2006 | April 30, 2006 | Jan 31, 2005 | Oct 31, 2005 | ||||||||||||||||||||||||
(In thousands, except ARPU) | ||||||||||||||||||||||||||||||||
Total Service revenues | 53,376 | 54,155 | 53,543 | 49,000 | 49,430 | 46,951 | 46,305 | 42,296 | ||||||||||||||||||||||||
Less: TiVo-Ow ned-related service revenues | (46,823 | ) | (46,995 | ) | (45,091 | ) | (41,427 | ) | (41,234 | ) | (38,942 | ) | �� | (36,703 | ) | (33,659 | ) | |||||||||||||||
DIRECTV-related service revenues | 6,553 | 7,160 | 8,452 | 7,573 | 8,196 | 8,009 | 9,602 | 8,637 | ||||||||||||||||||||||||
Average DIRECTV revenues per month | 2,184 | 2,387 | 2,817 | 2,524 | 2,732 | 2,670 | 3,201 | 2,879 | ||||||||||||||||||||||||
Average DIRECTV per month subscriptions | 2,554 | 2,668 | 2,767 | 2,837 | 2,858 | 2,881 | 2,818 | 2,505 | ||||||||||||||||||||||||
DIRECTV ARPU per month | $ | 0.86 | $ | 0.89 | $ | 1.02 | $ | 0.89 | $ | 0.96 | $ | 0.93 | $ | 1.14 | $ | 1.15 | ||||||||||||||||
Average Revenue Per Subscription or ARPU. Management reviews this metric, and believes it may be useful to investors, in order to evaluate the potential of our subscription base to generate revenues from a variety of sources, including subscription fees, advertising, and audience research measurement. ARPU does not include rebates, revenue share and other payments to channel that reduce our GAAP revenues. As a result, you should not use ARPU as a substitute for measures of financial performance calculated in accordance with GAAP. Management believes it is useful to consider this metric excluding the costs associated with rebates, revenue share and other payments to channel because of the discretionary and varying nature of these expenses and because management believes these expenses, which are included in hardware revenues, net, are more appropriately monitored as part of SAC. We are not aware of any uniform standards for calculating ARPU and caution that our presentation may not be consistent with that of other companies.
We calculate ARPU per month for TiVo-Owned subscriptions by subtracting DIRECTV-related service revenues (which includes DIRECTV subscription service revenues and DIRECTV-related advertising revenues) from our total reported net service revenues and dividing the result by the number of months in the period. We then divide by Average TiVo-Owned subscriptions for the period, calculated as described above for churn rate. The above table shows this calculation.
We calculate ARPU per month for DIRECTV subscriptions by first subtracting TiVo-Owned-related service revenues (which includes TiVo-Owned subscription service revenues and TiVo-Owned related advertising revenues) from our total reported service revenues. Then we divide average revenues per month for DIRECTV-related service revenues by average subscriptions for the period. The above table shows this calculation.
Beginning in February 2006, pursuant to the most recent amendment of our agreement with DIRECTV, TiVo defers a portion of the DIRECTV subscription fees equal to the fair value of the undelivered development services. Additionally, beginning in February 2007, DIRECTV began paying us a monthly fee for all DIRECTV households with DIRECTV receivers with TiVo service similar to the lower amount paid by DIRECTV for households with DIRECTV receivers with TiVo service deployed since March 15, 2002, subject to a monthly minimum payment by DIRECTV.