Exhibit 99.1
| Media Contact: | Investor Contact: | |
| Mona Klausing, Active Network | Brinlea Johnson, The Blueshirt Group | |
| Mona.Klausing@ActiveNetwork.com | Brinlea@BlueshirtGroup.com | |
| 1-858-964-3813 | 1-212-331-8424 | |
Active Network Reports Fourth Quarter and Fiscal Year 2011 Results
| • | Fourth Quarter Revenue Increases 23% Year-Over-Year to $76.0 Million |
| • | 2011 Revenue Increases 21% Year-Over-Year to $337.4 Million |
| • | 2011 Adjusted EBITDA of $36.0 Million, Up 43% Over the Prior Year Period |
SAN DIEGO, CALIF. – February 23, 2012 –The Active Network, Inc. (NYSE: ACTV), the leading provider of organization-based cloud computing applications, today announced its financial results for the fourth quarter and fiscal year 2011.
Q4 2011 Financial Highlights:
(All comparisons are made to the fourth quarter of 2010)
| • | Total net revenue was $76.0 million, up 23% from $61.6 million. |
| • | Technology revenue constituted 86%, or $65.5 million of total net revenue, up 33% from $49.2 million. |
| • | Marketing Services revenue constituted 14%, or $10.6 million of total net revenue. |
| • | Loss from operations was $14.9 million compared to a loss of $8.9 million. |
| • | Net loss was $8.5 million compared to a net loss of $9.1 million. |
| • | Adjusted EBITDA, a non-GAAP financial measure, was $0.4 million, including $1.9 million in severance costs associated with the acquisition of StarCite. Excluding these costs, Adjusted EBITDA was $2.3 million. |
Fiscal Year 2011 Financial Highlights:
(All comparisons are made to fiscal year 2010)
| • | Total net revenue was $337.4 million, up 21% from $279.6 million. |
| • | Technology revenue constituted 86%, or $290.5 million of total net revenue, up 22% from $237.7 million. |
| • | Registrations grew 14% over the prior year period to 80.3 million and revenue per registration was $2.85. |
| • | 51,300 organizations utilized the Company’s technology solutions, up 8%. |
| • | Marketing Services revenue constituted 14%, or $46.9 million of total net revenue, up 12% from $41.9 million. |
| • | Loss from operations narrowed to $16.6 million compared to a loss of $20.5 million. |
| • | Net loss was $15.3 million compared to a net loss of $27.3 million. |
| • | Adjusted EBITDA, a non-GAAP financial measure, increased 43% to $36.0 million, from $25.1 million. |
| • | The Company ended the year with cash and cash equivalents of $108.7 million. |
“I continue to be pleased with our strong performance, with Q4 revenue up 23% over the prior year period, making this our third straight quarter as a public company with revenue growth over 20%,” said Dave Alberga, CEO of Active Network. “We continue to roll out functionality for ActiveWorks, our core proprietary cloud-based SaaS platform, further establishing our industry leading position. In addition, our long-term contracts provide us with strong, predictable and recurring revenue streams.”
“During the quarter, we acquired StarCite, a top provider of global corporate strategic meetings management, and now have a robust “end-to-end” technology platform and a deep list of Fortune 500 clients, including 10 of the 15 largest technology companies, 9 of the 15 largest pharmaceutical companies and 10 out of 15 of the largest financial institutions in North America.1 Looking into 2012, we are very excited about our future growth opportunities and believe we are well positioned as the leader in the business events market.”
“We had a solid fourth quarter and are making steady progress towards our target long-term operating model,” explained Scott Mendel, CFO of Active Network. “One of the key drivers of our Q4 revenue growth, the number of registrations, was up 13% over the same period last year. During 2011, over 51,300 organizations used our technology solutions to manage their events and activities, up 8% over 2010. We believe our metrics validate our large market opportunity, both domestically and internationally, as we leverage our global partnerships and grow our diversified customer base.”
Q4 2011 Key Business Highlights:
| • | Active Network announced the acquisition of StarCite®—a leader in global corporate strategic meetings management—which has become part of the Company’s new Business Solutions division. In addition to its global customer base and leading strategic meeting management SaaS technology, StarCite provides Active Network access to a vast online marketplace of the top hotels, destinations and venue suppliers worldwide. |
| 1 | Based on Fortune 500 2011 data. |
| • | The Company formed a strategic alliance with the Professional Convention Management Association (PCMA), serving as both an event sponsor and PCMA’s official technology provider for its worldwide events. |
| • | LiveInfo™, a mobile application platform that enables resorts, parks and attractions to provide its customers with customizable information in branded iPhone and Android apps, was launched by Active Network. |
| • | Active Network announced that its recreation management software products power 60 of the top 100 cities in North America.2 Active Network helps city recreation managers automate manual processes, gain greater efficiencies in facility management, and grow their revenues. The Company now serves diverse cities such as Anchorage, Boston, Honolulu, Houston, New York, Phoenix, San Diego, Seattle, Toronto and Vancouver. |
| • | Schwaggle(TM), Active Network’s daily deals program for consumers, partnered with Google Offers. Schwaggle provides discounted promotions on high-end endurance sports and fitness gear, race registrations and golf tee times to Google Offers customers. |
Business Outlook
For the first quarter of 2012, Active Network is targeting total revenue to be in the range of $89 million to $93 million, up 25% at the midpoint compared to the same period in the prior year. Registrations are expected to grow approximately 13% to 15% and revenue per registration growth of approximately 3% to 5% compared to the same period in the prior year. The Company expects a net loss in the range of $27 million to $25 million and is targeting Adjusted EBITDA in the range of $(5) million to $(3) million mainly due to the purchase accounting impact of the fourth quarter 2011 acquisition of StarCite. Excluding the acquisition impact, the Company would expect Adjusted EBITDA to be in the range of $0 million to $2 million.
For the full year of 2012, Active Network is targeting total revenue to be in the range of $425 million to $435 million, up 27% at the midpoint compared to the prior year. The Company expects net loss in the range of $39 million to $35 million and Adjusted EBITDA in the range of $46 million to $50 million.
| 2 | Based on population. |
Conference Call Information
Active Network will host a conference call to discuss fourth quarter and fiscal year 2011 results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The conference call dial-in number is 800-573-4840 for domestic participants and 617-224-4326 for international participants. A live webcast of the conference call will also be available and can be accessed within the investor relations section of the Active Network corporate website at:http://investors.activenetwork.com/.
A replay of the call will be available starting at 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time) on February 23, 2012 through 11:59 p.m. Eastern Time (8:59 p.m. Pacific Time) on February 25, 2012. To listen to the replay, dial 888-286-8010 (or 617-801-6888 outside of the United States) and use the passcode 4319-2125. The replay will also be available via webcast at:http://investors.activenetwork.com/.
About The Active Network, Inc.
The Active Network, Inc. is the leading provider of organization-based cloud computing applications with over 51,300 global business customers and 80 million annual transactions reported last year. Our technology platform, ActiveWorks®, transforms the way organizers manage their activities and events by automating online registrations and streamlining other critical management functions, while also driving consumer participation to their events. Our flagship media property, Active.com®, is the leading online community for people who want to discover, participate in, and share activities about which they are passionate. Headquartered in San Diego, California since 1999, the Company has over 25 offices worldwide. To learn more, visitwww.ActiveNetwork.com orwww.Active.com. Follow Active Network on Twitter@ActiveNetwork,@Active and onFacebook.
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© 2012 The Active Network, Inc. All rights reserved. Active Network is a trademark of The Active Network, Inc. All other trademarks are the property of their respective owners.
Note With Respect to Non-GAAP Financial Measures
In addition to using GAAP financial results, the Company’s management measures and reports non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share. The most directly comparable GAAP financial results for these non-GAAP financial measures are Net income (loss), Net income (loss) and Net income (loss) per share, respectively. Management uses these non-GAAP financial measures to evaluate the Company’s performance and operations. Management also uses these non-GAAP financial measures for business planning, to evaluate acquisition opportunities and as a measurement to create incentives and to compensate the Company’s management team. In addition, management believes the exclusion or inclusion of certain amounts in calculating these non-GAAP financial measures can provide a useful measure to investors for period-to-period
comparisons. These non-GAAP financial measures, however, should be used in addition to, and in conjunction with, the Company’s financial results presented in accordance with GAAP. The Company strongly encourages investors to review its financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare the Company’s results with other companies’ non-GAAP financial measures having the same or similar names. Please see Reconciliation of GAAP to Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP financial measures.
Forward-Looking Statements
The Active Network, Inc. cautions you that the statements included in this press release that are not a description of historical facts are forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to substantial risks and uncertainties, including the Company’s ability to generate revenue and control expenses in order to achieve and maintain profitability, the Company’s ability to maintain an adequate rate of growth, including growing its registrations and revenue from registrations, and the Company’s ability to successfully manage its acquisitions and investments in businesses, applications and technologies, as well as the other risks detailed from time to time in the reports it files with the Securities and Exchange Commission. As a result of these risks and uncertainties, the Company’s actual results may differ materially from those expressed in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.
THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Net Revenue: | ||||||||||||||||
Technology revenue | $ | 65,478 | $ | 49,184 | $ | 290,480 | $ | 237,688 | ||||||||
Marketing services revenue | 10,567 | 12,439 | 46,910 | 41,912 | ||||||||||||
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Total net revenue | 76,045 | 61,623 | 337,390 | 279,600 | ||||||||||||
Cost of net revenue: | ||||||||||||||||
Cost of technology revenue | 34,976 | 26,466 | 144,962 | 115,148 | ||||||||||||
Cost of marketing services revenue | 1,711 | 1,641 | 5,952 | 6,203 | ||||||||||||
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Total cost of net revenue | 36,687 | 28,107 | 150,914 | 121,351 | ||||||||||||
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Gross profit | 39,358 | 33,516 | 186,476 | 158,249 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 17,281 | 14,307 | 70,251 | 59,106 | ||||||||||||
Research and development | 16,572 | 14,707 | 66,753 | 61,107 | ||||||||||||
General and administrative | 16,493 | 9,446 | 51,126 | 42,404 | ||||||||||||
Amortization of intangibles | 3,872 | 3,998 | 14,962 | 16,147 | ||||||||||||
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Total operating expenses | 54,218 | 42,458 | 203,092 | 178,764 | ||||||||||||
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Loss from operations | (14,860 | ) | (8,942 | ) | (16,616 | ) | (20,515 | ) | ||||||||
Interest income | 28 | 37 | 119 | 150 | ||||||||||||
Interest expense | (91 | ) | (1,349 | ) | (2,890 | ) | (5,438 | ) | ||||||||
Other income (expense), net | (123 | ) | 314 | (14 | ) | 455 | ||||||||||
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Loss before provision (benefit) for income taxes | (15,046 | ) | (9,940 | ) | (19,401 | ) | (25,348 | ) | ||||||||
Provision (benefit) for income taxes | (6,564 | ) | (848 | ) | (4,074 | ) | 1,924 | |||||||||
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Net loss | (8,482 | ) | (9,092 | ) | (15,327 | ) | (27,272 | ) | ||||||||
Accretion of redeemable convertible preferred stock | — | (7,329 | ) | (11,810 | ) | (28,157 | ) | |||||||||
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Net loss attributable to common stockholders | $ | (8,482 | ) | $ | (16,421 | ) | $ | (27,137 | ) | $ | (55,429 | ) | ||||
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Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic and diluted | $ | (0.16 | ) | $ | (2.17 | ) | $ | (0.75 | ) | $ | (7.83 | ) | ||||
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Weighted-average shares used to compute net loss per share attributable to common stockholders: | ||||||||||||||||
Basic and diluted | 54,109 | 7,553 | 36,072 | 7,080 | ||||||||||||
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THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| December 31, 2011 | December 31, 2010 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 108,699 | $ | 31,441 | ||||
Restricted cash | 1,502 | 5,000 | ||||||
Accounts receivable, net | 66,469 | 34,096 | ||||||
Inventories | 1,662 | — | ||||||
Prepaid expenses and other current assets | 6,179 | 4,181 | ||||||
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Total current assets | 184,511 | 74,718 | ||||||
Property and equipment, net | 33,830 | 28,181 | ||||||
Software development costs, net | 45,093 | 37,013 | ||||||
Goodwill and intangible assets, net | 333,660 | 248,321 | ||||||
Deposits and other assets | 2,133 | 2,315 | ||||||
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Total assets | $ | 599,227 | $ | 390,548 | ||||
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Liabilities, preferred stock and stockholders’ equity (deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | 8,516 | $ | 5,372 | |||||
Registration fees payable | 72,405 | 40,667 | ||||||
Accrued expenses | 41,106 | 32,172 | ||||||
Deferred revenue | 54,919 | 34,013 | ||||||
Current portion of debt | 5,000 | 16,866 | ||||||
Capital lease obligations, current portion | 3,317 | 1,983 | ||||||
Other current liabilities | 42,613 | 1,630 | ||||||
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Total current liabilities | 227,876 | 132,703 | ||||||
Debt, net of current portion | — | 27,537 | ||||||
Capital lease obligations, net of current portion | 1,652 | 1,663 | ||||||
Other long-term liabilities | 6,147 | 4,353 | ||||||
Deferred tax liability | 16,913 | 17,960 | ||||||
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Total liabilities | 252,588 | 184,216 | ||||||
Convertible preferred stock | — | 21,187 | ||||||
Redeemable convertible preferred stock | — | 371,126 | ||||||
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Total preferred stock | — | 392,313 | ||||||
Stockholders’ equity (deficit): | ||||||||
Common stock | 58 | 9 | ||||||
Treasury stock | (11,959 | ) | (11,959 | ) | ||||
Additional paid-in capital | 625,875 | 65,224 | ||||||
Accumulated other comprehensive income | 7,923 | 8,866 | ||||||
Accumulated deficit | (275,258 | ) | (248,121 | ) | ||||
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Total stockholders’ equity (deficit) | 346,639 | (185,981 | ) | |||||
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Total liabilities, preferred stock and stockholders’ equity (deficit) | $ | 599,227 | $ | 390,548 | ||||
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THE ACTIVE NETWORK, INC.
SUPPLEMENTARY DATA
(In thousands, except revenue per registration)
(Unaudited)
Operational Data:
| Three Months Ended December 31, | % change | Twelve Months Ended December 31, | % change | |||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Organizations | n/a | n/a | n/a | 51.3 | 47.3 | 8 | % | |||||||||||||||||
Net registration revenue | $ | 46,386 | $ | 39,260 | 18 | % | $ | 228,453 | $ | 197,575 | 16 | % | ||||||||||||
Registrations | 17,305 | 15,323 | 13 | % | 80,274 | 70,182 | 14 | % | ||||||||||||||||
Net registration revenue per registration | $ | 2.68 | $ | 2.56 | 5 | % | $ | 2.85 | $ | 2.82 | 1 | % | ||||||||||||
Gross Profit Margin:
| Three Months Ended December 31, | % or bps change | Twelve Months Ended December 31, | % or bps change | |||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Total net revenue | $ | 76,045 | $ | 61,623 | 23 | % | $ | 337,390 | $ | 279,600 | 21 | % | ||||||||||||
GAAP gross profit | 39,358 | 33,516 | 186,476 | 158,249 | ||||||||||||||||||||
Add back: stock-based compensation | 61 | 32 | 168 | 111 | ||||||||||||||||||||
Add back: depreciation & amortization | 6,722 | 4,855 | 23,518 | 15,173 | ||||||||||||||||||||
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Non-GAAP gross profit | 46,141 | 38,403 | 20 | % | 210,162 | 173,533 | 21 | % | ||||||||||||||||
Gross profit margin: | ||||||||||||||||||||||||
GAAP gross profit margin | 51.8 | % | 54.4 | % | (260 | )bps | 55.3 | % | 56.6 | % | (130 | )bps | ||||||||||||
Non-GAAP gross profit margin | 60.7 | % | 62.3 | % | (160 | )bps | 62.3 | % | 62.1 | % | 20 | bps | ||||||||||||
Stock-based compensation:
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Cost of net revenue | $ | 61 | $ | 32 | $ | 168 | $ | 111 | ||||||||
Sales and marketing | 373 | 172 | 1,413 | 562 | ||||||||||||
Research and development | 279 | (43 | ) | 915 | 244 | |||||||||||
General and administrative | 2,300 | 645 | 5,299 | 4,431 | ||||||||||||
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Total | $ | 3,013 | $ | 806 | $ | 7,795 | $ | 5,348 | ||||||||
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THE ACTIVE NETWORK, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Non-GAAP net income (loss): | ||||||||||||||||
GAAP net loss | $ | (8,482 | ) | $ | (9,092 | ) | $ | (15,327 | ) | $ | (27,272 | ) | ||||
Add back: stock-based compensation | 3,013 | 806 | 7,795 | 5,348 | ||||||||||||
Add back: amortization of intangibles | 5,161 | 5,227 | 20,471 | 21,057 | ||||||||||||
Add back: acquisition-related severance costs | 1,977 | — | 1,977 | — | ||||||||||||
Income tax effect | (3,553 | ) | (2,112 | ) | (10,585 | ) | (9,242 | ) | ||||||||
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Non-GAAP net income (loss) | $ | (1,884 | ) | $ | (5,171 | ) | $ | 4,331 | $ | (10,109 | ) | |||||
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Non-GAAP net income (loss) per share: | ||||||||||||||||
Non-GAAP net income (loss) | $ | (1,884 | ) | $ | (5,171 | ) | $ | 4,331 | $ | (10,109 | ) | |||||
GAAP basic shares | 54,109 | 7,553 | 36,072 | 7,080 | ||||||||||||
Add: preferred stock conversion | — | 34,632 | 13,663 | 34,632 | ||||||||||||
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Non-GAAP basic shares | 54,109 | 42,185 | 49,735 | 41,712 | ||||||||||||
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GAAP diluted shares | 54,109 | 7,553 | 36,072 | 7,080 | ||||||||||||
Add: preferred stock conversion and dilutive securities | — | 34,632 | 22,598 | 34,632 | ||||||||||||
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Non-GAAP diluted shares | 54,109 | 42,185 | 58,670 | 41,712 | ||||||||||||
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Non-GAAP net income (loss) per share: | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.12 | ) | $ | 0.09 | $ | (0.24 | ) | |||||
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Diluted | $ | (0.03 | ) | $ | (0.12 | ) | $ | 0.07 | $ | (0.24 | ) | |||||
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| Three Months Ended December 31, | % change | Twelve Months Ended December 31, | % change | |||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||
Net loss | $ | (8,482 | ) | $ | (9,092 | ) | $ | (15,327 | ) | $ | (27,272 | ) | ||||||||||||
Interest expense, net | 63 | 1,312 | 2,771 | 5,288 | ||||||||||||||||||||
Income tax provision (benefit) | (6,564 | ) | (848 | ) | (4,074 | ) | 1,924 | |||||||||||||||||
Depreciation & amortization | 12,203 | 11,000 | 44,857 | 40,287 | ||||||||||||||||||||
Stock-based compensation | 3,013 | 806 | 7,795 | 5,348 | ||||||||||||||||||||
Other expense (income), net | 123 | (314 | ) | 14 | (455 | ) | ||||||||||||||||||
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Adjusted EBITDA | $ | 356 | $ | 2,864 | (88 | %) | $ | 36,036 | $ | 25,120 | 43 | % | ||||||||||||
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Acquisition-related severance costs | 1,977 | — | 1,977 | — | ||||||||||||||||||||
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Adjusted EBITDA excluding acquisition-related severance costs | $ | 2,333 | $ | 2,864 | (19 | %) | $ | 38,013 | $ | 25,120 | 51 | % | ||||||||||||
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THE ACTIVE NETWORK, INC.
FUTURE PERFORMANCE—1ST QUARTER AND FULL YEAR 2012 OUTLOOK
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands)
Estimated 1st Quarter 2012 | Estimated Full Year 2012 | |||||||||||||||
| Low End | High End | Low End | High End | |||||||||||||
Net loss | $ | (27,000 | ) | $ | (25,000 | ) | $ | (39,000 | ) | $ | (35,000 | ) | ||||
Interest, taxes & other | 1,000 | 1,000 | 4,000 | 4,000 | ||||||||||||
Depreciation & amortization | 15,200 | 15,200 | 60,000 | 60,000 | ||||||||||||
Stock-based compensation | 5,800 | 5,800 | 21,000 | 21,000 | ||||||||||||
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Adjusted EBITDA | $ | (5,000 | ) | $ | (3,000 | ) | $ | 46,000 | $ | 50,000 | ||||||
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© 2012 The Active Network, Inc. All rights reserved. Active.com and ActiveWorks are registered trademarks of The Active Network, Inc. Active Network is a trademark of The Active Network, Inc. All other trademarks are the property of their respective owners.