Exhibit 99.1
For Immediate Release
Tangoe, Inc. Announces Fourth Quarter and Full Year 2012 Financial Results
Fourth Quarter Highlights:
· Total revenue of $44.0 million, up 51% year-over-year
· GAAP operating income of $2.3 million; non-GAAP operating income of $7.2 million, up 106% year-over-year
· GAAP net income of $1.9 million; non-GAAP net income of $6.8 million, up 113% year-over-year
· Adjusted EBITDA of $7.5 million, a record quarterly adjusted EBITDA margin of 17% and up 103% year-over-year
Orange, Conn., February 13, 2013 — Tangoe, Inc. (NASDAQ: TNGO), a leading global provider of communications lifecycle management (CLM) software and related services, today announced financial results for its fourth quarter and full year ended December 31, 2012.
“Our fourth quarter marked a strong finish to the year, and it was highlighted by revenue growth that was above our expectations,” stated Al Subbloie, president and CEO of Tangoe. “During 2012 we significantly increased the scale of Tangoe, expanded our product offering and enhanced our lead in the CLM market place. Our market share gains continue to be fueled by the combination of new customer wins, robust cross sell activity, momentum with our strategic alliance partners, geographic expansion and strong renewal rates.”
Subbloie added, “Tangoe entered 2013 with strong momentum as we continue to grow our pipeline of opportunities and scale our global distribution resources. We continue to expect the company to deliver a combination of strong organic growth and margin expansion during 2013. In addition, we believe that Tangoe has further improved its position to become the primary winner in the multi-billion dollar CLM opportunity over the long-term.”
Fourth Quarter 2012 Financial Highlights
· Revenue: Total revenue for the fourth quarter was $44.0 million, an increase of 51% on a year-over-year basis. Recurring technology and services revenue was $39.0 million, an increase of 51% on a year-over-year basis. Strategic consulting, software licenses and other services revenue contributed the remaining $5.0 million of total revenue for the fourth quarter of 2012.
· Operating Income: GAAP operating income for the fourth quarter was $2.3 million, compared to a GAAP operating income of $1.2 million for the fourth quarter of 2011. Non-GAAP operating income for the fourth quarter was $7.2 million, representing an increase of 106% compared to $3.5 million for the fourth quarter of 2011.
· Net Income (Loss): GAAP net income for the fourth quarter was $1.9 million, compared to $0.9 million of net income for the same period last year. GAAP diluted income per share for the fourth quarter was $0.05, based on 40.7 million weighted-average diluted shares outstanding, compared to income per share of $0.02, based on 38.5 million weighted-average diluted shares outstanding, for the same period last year.
Non-GAAP net income for the fourth quarter was $6.8 million, up 113% compared to $3.2 million for the fourth quarter of 2011. Non-GAAP diluted net income per share for the fourth quarter was $0.17 based on 40.7 million weighted-average diluted shares outstanding compared to $0.08 per share based on 38.5 million weighted-average diluted shares outstanding for the same period last year.
· Adjusted EBITDA: Adjusted EBITDA for the fourth quarter was $7.5 million, an increase of 103% compared to $3.7 million for the fourth quarter of 2011. Adjusted EBITDA margin was a record 17.1% for the fourth quarter of 2012, an increase compared to a 12.7% margin for the same period last year.
· Cash and Cash Flow: As of December 31, 2012, Tangoe had cash and cash equivalents of $50.2 million, a decrease of $5.5 million from the end of the prior quarter due primarily to the payment of deferred purchase price obligations for acquisitions and the repurchase of common shares during the quarter.
The company generated $3.2 million in net cash from operations for the fourth quarter of 2012, compared to $4.8 million during the fourth quarter of 2011. The company generated $2.7 million in unlevered free cash flow for the quarter, compared to $4.4 million during the fourth quarter of 2011.
Full Year 2012 Financial Highlights
· Revenue: Total revenue for the full year 2012 was $154.5 million, an increase of 47% on a year-over-year basis. Recurring technology and services revenue was $138.0 million, an increase of 47% on a year-over-year basis. Strategic consulting, software licenses and other services contributed the remaining $16.5 million of total revenue for 2012.
· Operating Income: GAAP operating income for the full year 2012 was $4.4 million, compared to GAAP operating income of $2.6 million for 2011. Non-GAAP operating income was $21.1 million, representing an increase of 74% compared to $12.1 million for 2011.
· Net Income (Loss): GAAP net income for the full year 2012 was $3.0 million, compared to a $3.0 million net loss for 2011. GAAP diluted net income per share was $0.08 based on 39.9 million weighted-average diluted shares outstanding for the full year 2012, compared to a loss per share of $0.31, after deducting dividends and accretion related to our preferred stock and based on 16.4 million weighted-average diluted shares outstanding for 2011.
Non-GAAP net income for the full year 2012 was $19.7 million, up 105% compared to $9.6 million for 2011. Non-GAAP diluted net income per share for 2012 was $0.50 based on 39.9 million weighted-average diluted shares outstanding,
an increase of 72% compared to $0.29 per share based on 33.5 million weighted-average diluted shares outstanding for 2011.
· Adjusted EBITDA: Adjusted EBITDA for the full year 2012 was $22.3 million, an increase of 76% compared to $12.7 million for 2011. Adjusted EBITDA margin was 14.4% for 2012, representing a record annual adjusted EBITDA margin and an increase compared to a 12.1% margin for 2011.
· Cash Flow: The Company generated $16.7 million in net cash from operations during the full year 2012, compared to $10.1 million in 2011. The Company generated $15.0 million in unlevered free cash flow for 2012, an increase of 41% compared to $10.6 million for 2011.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Financial Outlook
As of February 13, 2013, Tangoe is providing guidance for its first quarter and raising its full year 2013 guidance:
· First Quarter 2013 Guidance: Total revenue is expected to be in the range of $43.8 million to $44.3 million. Adjusted EBITDA is expected to be in the range of $6.4 million to $6.6 million. Non-GAAP net income per share is expected to be approximately $0.14 based on approximately 40.8 million weighted-average diluted shares outstanding.
· Full Year 2013 Guidance: Total revenue is expected to be in the range of $188.5 million to $191.5 million. Adjusted EBITDA is expected to be in the range of $31.0 million to $32.0 million. Non-GAAP net income per share is expected to be in the range of $0.67 to $0.70 based on approximately 41.0 million weighted-average diluted shares outstanding.
Quarterly Conference Call
Tangoe will host a conference call today at 5:00 p.m. EST to review the company’s financial results for the fourth quarter and full year 2012 and business outlook. To access this call, dial 800.390.5705 (United States), or 719.325.2271 (international), with conference ID #2193548. A live webcast of the conference call will be accessible from the investor relations page of Tangoe’s website at http://investor.tangoe.com/, and a recording will be archived and accessible at http://investor.tangoe.com/events.cfm. A recording of this conference call will also be available through February 27, 2012, by dialing 877.870.5176 (United States), or 858.384.5517 (international). The recording access code is #2193548.
About Tangoe
Tangoe is a leading global provider of Communications Lifecycle Management (CLM) software and services to a wide range of global enterprises. CLM encompasses the entire lifecycle of an enterprise’s communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, mobile device management, invoice processing, expense allocation and accounting, and asset decommissioning and disposal. Tangoe’s Communications Management Platform (CMP) is an on-demand suite of software designed to manage and optimize the complex processes and expenses associated with this lifecycle for both fixed and mobile communications assets and services. Tangoe’s customers can also manage their communications assets and services by engaging Tangoe’s client service group.
Additional information about Tangoe can be found at www.tangoe.com. Tangoe is a registered trademark of Tangoe, Inc.
Non-GAAP Financial Measures
Adjusted EBITDA discussed in this press release is defined as net income (loss) plus interest expense, other expense, income tax provision, depreciation and amortization, amortization of marketing agreement intangible assets, stock-based compensation
expense and, for 2011 only, restructuring charge and increase in fair value of warrants for redeemable convertible preferred stock; less amortization of leasehold interest and interest income. Non-GAAP operating income excludes stock-based compensation expense, amortization of intangible assets, amortization of debt discount, and, for 2011 only, restructuring charge and amortization of deferred financing costs. Non-GAAP net income excludes stock-based compensation expense, amortization of intangible assets, amortization of debt discount, and, for 2011 only, restructuring charge, term loan repayment fee, term loan debt discount, amortization of deferred financing costs and increase in fair value of warrants for redeemable convertible preferred stock. Unlevered free cash flow is defined as net cash provided by operating activities plus net interest payments and, for 2011 only, IPO related expense payments, less capital expenditures. Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the company’s performance against prior periods, the preparation of operating budgets and determination of appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company’s financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.
Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about our estimates regarding future revenue and financial performance. We may not actually achieve the expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements we make. More information about potential factors that could affect our business and financial results is contained in our Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on November 14, 2012. Additional information will also be set forth in our future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend, and undertake no duty, to release publicly any updates or revisions to any forward-looking statements contained herein.
TANGOE, INC.
Consolidated Statements of Operations (unaudited)
(in thousands, except per share amounts)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2011 | | 2012 | | 2011 | | 2012 | |
| | | | | | | | | |
Revenue: | | | | | | | | | |
Recurring technology and services | | $ | 25,778 | | $ | 39,010 | | $ | 93,671 | | $ | 137,979 | |
Strategic consulting, software licenses and other | | 3,463 | | 4,960 | | 11,270 | | 16,533 | |
Total revenue | | 29,241 | | 43,970 | | 104,941 | | 154,512 | |
| | | | | | | | | |
Cost of revenue: | | | | | | | | | |
Recurring technology and services | | 12,397 | | 18,167 | | 44,814 | | 63,976 | |
Strategic consulting, software licenses and other | | 1,532 | | 1,792 | | 5,165 | | 6,627 | |
Total cost of revenue | | 13,929 | | 19,959 | | 49,979 | | 70,603 | |
| | | | | | | | | |
Gross profit | | 15,312 | | 24,011 | | 54,962 | | 83,909 | |
| | | | | | | | | |
Operating expenses: | | | | | | | | | |
Sales and marketing | | 4,874 | | 7,108 | | 16,648 | | 24,840 | |
General and administrative | | 4,922 | | 7,487 | | 17,777 | | 29,317 | |
Research and development | | 3,142 | | 4,570 | | 11,860 | | 16,696 | |
Depreciation and amortization | | 1,171 | | 2,498 | | 4,551 | | 8,666 | |
Restructuring charge | | — | | — | | 1,549 | | — | |
Income from operations | | 1,203 | | 2,348 | | 2,577 | | 4,390 | |
| | | | | | | | | |
Other income (expense), net: | | | | | | | | | |
Interest expense | | (184 | ) | (260 | ) | (3,047 | ) | (943 | ) |
Interest income | | 24 | | 20 | | 45 | | 80 | |
Other expense | | — | | (9 | ) | — | | (9 | ) |
Increase in fair value of warrants for redeemable convertible preferred stock | | — | | — | | (1,996 | ) | — | |
Income (loss) before income tax provision | | 1,043 | | 2,099 | | (2,421 | ) | 3,518 | |
Income tax provision | | 140 | | 172 | | 534 | | 480 | |
Net income (loss) | | 903 | | 1,927 | | (2,955 | ) | 3,038 | |
Preferred dividends | | — | | — | | (2,168 | ) | — | |
Accretion of redeemable convertible preferred stock | | — | | — | | (37 | ) | — | |
Income (loss) applicable to common stockholders | | $ | 903 | | $ | 1,927 | | $ | (5,160 | ) | $ | 3,038 | |
| | | | | | | | | |
Income (loss) per common share: | | | | | | | | | |
Basic | | $ | 0.03 | | $ | 0.05 | | $ | (0.31 | ) | $ | 0.08 | |
Diluted | | $ | 0.02 | | $ | 0.05 | | $ | (0.31 | ) | $ | 0.08 | |
| | | | | | | | | |
Weighted average number of common share: | | | | | | | | | |
Basic | | 32,972 | | 37,720 | | 16,412 | | 36,492 | |
Diluted | | 38,493 | | 40,673 | | 16,412 | | 39,870 | |
TANGOE, INC.
Consolidated Balance Sheets
(in thousands)
| | December 31, | |
| | 2011 | | 2012 | |
| | | | (Unaudited) | |
ASSETS | | | | | |
CURRENT ASSETS: | | | | | |
Cash and cash equivalents | | $ | 43,407 | | $ | 50,211 | |
Accounts receivable | | 25,311 | | 38,309 | |
Prepaid expenses and other current assets | | 2,503 | | 3,384 | |
Total current assets | | 71,221 | | 91,904 | |
COMPUTERS, FURNITURE AND EQUIPMENT-NET | | 3,334 | | 3,999 | |
| | | | | |
OTHER ASSETS: | | | | | |
Intangible assets-net | | 28,800 | | 44,249 | |
Goodwill | | 36,266 | | 65,825 | |
Security deposits and other non-current assets | | 1,241 | | 1,291 | |
TOTAL ASSETS | | $ | 140,862 | | $ | 207,268 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
CURRENT LIABILITIES: | | | | | |
Accounts payable | | $ | 6,605 | | $ | 9,128 | |
Accrued expenses | | 7,061 | | 12,035 | |
Deferred revenue-current portion | | 9,051 | | 9,648 | |
Notes payable-current portion | | 7,904 | | 22,443 | |
Other current liabilities | | 1,079 | | 305 | |
Total current liabilities | | 31,700 | | 53,559 | |
| | | | | |
OTHER LIABILITIES: | | | | | |
Deferred rent and other non-current liabilities | | 1,659 | | 3,543 | |
Deferred revenue-less current portion | | 2,624 | | 1,415 | |
Notes payable-less current portion | | 8,290 | | 131 | |
Total liabilities | | 44,273 | | 58,648 | |
| | | | | |
COMMITMENT AND CONTINGENCIES | | | | | |
| | | | | |
STOCKHOLDERS’ EQUITY | | | | | |
Common Stock | | 3 | | 4 | |
Additional paid-in capital | | 142,905 | | 191,581 | |
Warrants for common stock | | 10,610 | | 10,610 | |
Less: notes receivable for purchase of common stock | | (93 | ) | — | |
Accumulated deficit | | (56,795 | ) | (53,757 | ) |
Other comprehensive (loss) income | | (41 | ) | 182 | |
Total stockholders’ equity | | 96,589 | | 148,620 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 140,862 | | $ | 207,268 | |
TANGOE, Inc.
Consolidated Statements of Cash Flows
(in thousands)
| | For the Years Ended
December 31, | |
| | 2011 | | 2012 | |
Operating activities: | | | | | |
Net (loss) income | | $ | (2,955 | ) | $ | 3,038 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | | | | | |
Amortization of debt discount | | 1,339 | | 801 | |
Amortization of leasehold interest | | — | | (99 | ) |
Depreciation and amortization | | 4,551 | | 8,666 | |
Restructuring charge | | 1,549 | | — | |
(Decrease) increase in deferred rent liability | | (58 | ) | 19 | |
Amortization of marketing agreement intangible assets | | 92 | | 174 | |
Allowance for doubtful accounts | | 23 | | 96 | |
Deferred income taxes | | 305 | | 183 | |
Stock based compensation | | 3,980 | | 9,165 | |
Foreign exchange loss | | — | | 46 | |
Increase in fair value of warrants for redeemable convertible preferred stock | | 1,996 | | — | |
Changes in assets and liabilities, net of acquisitions: | | | | | |
Accounts receivable | | (4,437 | ) | (5,883 | ) |
Prepaid expenses and other assets | | 47 | | 170 | |
Other assets | | (381 | ) | (19 | ) |
Accounts payable | | 3,054 | | 1,310 | |
Accrued expenses | | (184 | ) | 885 | |
Deferred revenue | | 1,226 | | (1,864 | ) |
Net cash provided by operating activities | | 10,147 | | 16,688 | |
Investing activities: | | | | | |
Purchases of computers, furniture and equipment | | (853 | ) | (1,820 | ) |
Cash paid in connection with acquisitions | | (22,194 | ) | (38,410 | ) |
Net cash used in investing activities | | (23,047 | ) | (40,230 | ) |
Financing activities: | | | | | |
Repayment of debt | | (38,018 | ) | (9,676 | ) |
Borrowings of debt | | 20,000 | | 778 | |
Proceeds from public offerings, net of issuance costs | | 66,989 | | 37,729 | |
Repurchase of common stock | | — | | (2,700 | ) |
Deferred financing costs | | (170 | ) | — | |
Proceeds from notes receivable | | — | | 93 | |
Proceeds from exercise of stock options and stock warrants | | 1,593 | | 4,174 | |
Net cash provided by financing activities | | 50,394 | | 30,398 | |
| | | | | |
Effect of exchange rate on cash | | — | | (52 | ) |
| | | | | |
Net increase in cash and cash equivalents | | 37,494 | | 6,804 | |
Cash and cash equivalents, beginning of period | | 5,913 | | 43,407 | |
Cash and cash equivalents, end of period | | $ | 43,407 | | $ | 50,211 | |
TANGOE, INC.
Calculation of Non-GAAP Operating Income (Unaudited)
(in thousands)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2011 | | 2012 | | 2011 | | 2012 | |
| | | | % of | | | | % of | | | | % of | | | | % of | |
| | Amount | | Revenue | | Amount | | Revenue | | Amount | | Revenue | | Amount | | Revenue | |
Income from operations | | $ | 1,203 | | 4.1% | | $ | 2,348 | | 5.3% | | $ | 2,577 | | 2.5% | | $ | 4,390 | | 2.8% | |
| | | | | | | | | | | | | | | | | |
Add: | | | | | | | | | | | | | | | | | |
Stock based compensation expense | | 1,316 | | 4.5% | | 2,626 | | 6.0% | | 3,980 | | 3.8% | | 9,165 | | 5.9% | |
Restructuring costs | | — | | 0.0% | | — | | 0.0% | | 1,549 | | 1.5% | | — | | 0.0% | |
Amortization of intangibles | | 828 | | 2.8% | | 2,034 | | 4.6% | | 3,052 | | 2.9% | | 6,744 | | 4.4% | |
Amortization of debt discount | | 158 | | 0.5% | | 231 | | 0.5% | | 698 | | 0.7% | | 801 | | 0.5% | |
Amortization of deferred financing costs | | — | | 0.0% | | — | | 0.0% | | 227 | | 0.2% | | — | | 0.0% | |
| | | | | | | | | | | | | | | | | |
Non-GAAP income from operations | | $ | 3,505 | | 12.0% | | $ | 7,239 | | 16.5% | | $ | 12,083 | | 11.5% | | $ | 21,100 | | 13.7% | |
TANGOE, INC.
Reconciliation of Net (loss) income to Adjusted EBITDA (Unaudited)
(in thousands)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2011 | | 2012 | | 2011 | | 2012 | |
| | | | % of | | | | % of | | | | % of | | | | % of | |
| | Amount | | Revenue | | Amount | | Revenue | | Amount | | Revenue | | Amount | | Revenue | |
Net income (loss) | | $ | 903 | | 3.1% | | $ | 1,927 | | 4.4% | | $ | (2,955 | ) | -2.8% | | $ | 3,038 | | 2.0% | |
Interest expense | | 184 | | 0.6% | | 260 | | 0.6% | | 3,047 | | 2.9% | | 943 | | 0.6% | |
Interest income | | (24 | ) | -0.1% | | (20 | ) | 0.0% | | (45 | ) | 0.0% | | (80 | ) | -0.1% | |
Other (income) expense | | — | | 0.0% | | 9 | | 0.0% | | — | | 0.0% | | 9 | | 0.0% | |
Income tax provision | | 140 | | 0.5% | | 172 | | 0.4% | | 534 | | 0.5% | | 480 | | 0.3% | |
Depreciation and amortization | | 1,171 | | 4.0% | | 2,498 | | 5.7% | | 4,551 | | 4.3% | | 8,666 | | 5.6% | |
Amortization of marketing agreement intangible assets | | 27 | | 0.1% | | 55 | | 0.1% | | 92 | | 0.1% | | 174 | | 0.1% | |
Amortization of leasehold interest | | — | | 0.0% | | (25 | ) | -0.1% | | — | | 0.0% | | (99 | ) | -0.1% | |
Stock based compensation expense | | 1,316 | | 4.5% | | 2,626 | | 6.0% | | 3,980 | | 3.8% | | 9,165 | | 5.9% | |
Restructuring charge | | — | | 0.0% | | — | | 0.0% | | 1,549 | | 1.5% | | — | | 0.0% | |
Increase in fair value of warrants for redeemable convertible preferred stock | | — | | 0.0% | | — | | 0.0% | | 1,996 | | 1.9% | | — | | 0.0% | |
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 3,717 | | 12.7% | | $ | 7,502 | | 17.1% | | $ | 12,749 | | 12.1% | | $ | 22,296 | | 14.4% | |
TANGOE, INC.
Calculation of Non-GAAP Net Income and Non-GAAP Net Income per Share (Unaudited)
(in thousands, except per share data)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2011 | | 2012 | | 2011 | | 2012 | |
Net income (loss) | | $ | 903 | | $ | 1,927 | | $ | (2,955 | ) | $ | 3,038 | |
| | | | | | | | | |
Add: | | | | | | | | | |
Stock based compensation expense | | 1,316 | | 2,626 | | 3,980 | | 9,165 | |
Restructuring charge | | — | | — | | 1,549 | | — | |
Amortization of intangibles | | 828 | | 2,034 | | 3,052 | | 6,744 | |
Amortization of debt discount | | 158 | | 231 | | 698 | | 801 | |
Amortization of deferred financing costs | | — | | — | | 227 | | — | |
Increase in fair value of warrants for redeemable convertible preferred stock | | — | | — | | 1,996 | | — | |
Orix loan repayment | | — | | — | | 400 | | — | |
Term loan debt discount | | — | | — | | 641 | | — | |
Non-GAAP net income | | $ | 3,205 | | $ | 6,818 | | $ | 9,588 | | $ | 19,748 | |
| | | | | | | | | |
Non-GAAP net income per share: diluted | | $ | 0.08 | | $ | 0.17 | | $ | 0.29 | | $ | 0.50 | |
| | | | | | | | | |
Fully diluted weighted average shares outstanding | | 38,493 | | 40,673 | | 33,503 | | 39,870 | |
TANGOE, INC.
Stock Based Compensation Expense (Unaudited)
(in thousands)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2011 | | 2012 | | 2011 | | 2012 | |
Cost of revenue | | $ | 170 | | $ | 400 | | $ | 669 | | $ | 1,347 | |
Sales and marketing | | 612 | | 678 | | 1,201 | | 2,133 | |
General and administrative | | 487 | | 1,378 | | 1,934 | | 5,105 | |
Research and development | | 47 | | 170 | | 176 | | 580 | |
Total | | $ | 1,316 | | $ | 2,626 | | $ | 3,980 | | $ | 9,165 | |
TANGOE, INC.
Calculation of Unlevered Free Cash Flow (Unaudited)
(in thousands)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2011 | | 2012 | | 2011 | | 2012 | |
Net cash provided by operating activities | | $ | 4,836 | | $ | 3,153 | | $ | 10,147 | | $ | 16,688 | |
| | | | | | | | | |
Add: | | | | | | | | | |
Interest payments, net | | 20 | | 33 | | 1,620 | | 127 | |
IPO Expense payments | | — | | — | | 466 | | — | |
| | | | | | | | | |
Subtract: | | | | | | | | | |
Capital Expenditures | | 451 | | 487 | | 1,599 | | 1,820 | |
Unlevered Free Cash Flow | | $ | 4,405 | | $ | 2,699 | | $ | 10,634 | | $ | 14,995 | |
Investor Contact:
Seth Potter
ICR, Inc.
512.344.0277
ir@tangoe.com
Media Contact:
Kristin Conforti
PAN Communications, Inc.
617.502.4300
tangoe@pancomm.com
