Exhibit 99.1
Amber Road Announces First Quarter 2014 Financial Results
Total revenue of $15.0 million increases 29% year-over-year
EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--May 13, 2014--Amber Road, Inc. (NYSE: AMBR), a leading provider of global trade management (GTM) solutions, today announced its financial results for the quarter ended March 31, 2014.
Jim Preuninger, Chief Executive Officer of Amber Road, stated, “We are pleased with our performance in our first quarter as a public company, with revenue increasing 29% year-over-year. We saw solid execution across all of our market segments. Our results reflect the increasing demand for our solutions which are changing the way companies conduct and manage trade globally, and the increased investments we have been making in sales and marketing to drive awareness and adoption.”
First Quarter 2014 Financial Highlights
Revenue
Operating Loss
Net Loss attributable to common stockholders
Adjusted EBITDA
Balance Sheet
A reconciliation of GAAP operating and net loss to Non-GAAP adjusted operating and net loss and Adjusted EBITDA 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.”
First Quarter 2014 and Recent Business Highlights
Business Outlook
Based on information available as of May 13, 2014, Amber Road is issuing guidance for the second quarter and full year 2014 as indicated below:
Second Quarter 2014:
Full Year 2014:
Expectations of non-GAAP loss from operations and non-GAAP loss per common share for the second quarter exclude stock-based compensation expense, restricted stock compensation and changes in the fair value of contingent consideration. Expectations of non-GAAP loss from operations and non-GAAP loss per common share for the full year 2014 exclude stock-based compensation expense, restricted stock compensation, compensation related to loan forgiveness, puttable stock compensation, changes in the fair value of contingent consideration and warrant expense.
Conference Call Information
Amber Road will host a conference call on Tuesday, May 13, 2014 at 5:00 p.m. Eastern Time (ET) to discuss the company’s first quarter financial results and its business outlook. To access this call, dial 888-791-4321 (domestic) or 913-312-0981 (international). The conference ID is 2665595. Additionally, a live webcast of the conference call will be available in the “Investor Relations” section of the Company’s web site at www.amberroad.com.
Following the conference call, a replay will be available at 877-870-5176 (domestic) or 858-384-5517 (international). The replay pass code is 2665595. An archived webcast of this conference call will also be available in the “Investor Relations” section of the Company’s web site at www.amberroad.com.
About Amber Road
Amber Road’s (NYSE: AMBR) mission is to dramatically change the way companies conduct global trade. As a leading provider of cloud based global trade management (GTM) solutions, we automate import and export processes to enable goods to flow across international borders in the most efficient, compliant and profitable way. Our solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in 139 countries, and a global supply chain network connecting our customers with their trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers. We deliver our GTM solution using a Software-as-a-Service (SaaS) model and leverage a highly flexible technology framework to quickly and efficiently meet our customers’ unique requirements around the world. For more information, please visit www.AmberRoad.com, email Solutions@AmberRoad.com or call 201-935-8588.
Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, Amber Road has provided within this press release non-GAAP adjusted operating and net loss and adjusted EBITDA, financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. Provided below is a reconciliation of GAAP operating and net loss to non-GAAP adjusted operating and net loss, and net loss to adjusted EBITDA. EBITDA consists of net loss plus depreciation and amortization, interest expense (income) and income tax expense. Adjusted EBITDA consists of EBITDA plus non-cash, stock-based compensation expense, restricted stock compensation, puttable stock compensation, warrant expense, compensation related to loan forgiveness as well as the change in fair value of warrant liability. Amber Road has included these non-GAAP measures in this press release because it assists in comparing performance on a consistent basis across reporting periods, as it removes from operating results the impact of the company’s capital structure. Amber Road believes these non-GAAP measures are useful to an investor in evaluating its operating performance because they are often used by the financial community to measure a company’s operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of performance exclusive of its capital structure and the method by which assets were acquired.
Amber Road’s use of these non-GAAP measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are:
Because of these and other limitations, you should consider these non-GAAP measures together with other GAAP-based financial performance measures, including various cash flow metrics, net loss and other GAAP results. A reconciliation of GAAP operating and net loss to non-GAAP adjusted operating and net loss, and adjusted EBITDA has been provided in the financial statement tables included in this press release.
Cautionary Language Concerning Forward-Looking Statements
This press release contains forward-looking statements. These statements identify substantial risks and uncertainties and relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” and similar expressions, whether in the negative or affirmative. These statements are only predictions and may be inaccurate. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors, including the risks outlined in our filings with the Securities and Exchange Commission (SEC), including, without limitation, our periodic and current SEC reports. These factors may cause our actual results to differ materially from any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, our future results, levels of activity, performance or achievements may differ from our expectations. Other than as required by law, we do not undertake to update any of the forward-looking statements after the date of this press release, even though our situation may change in the future.
| AMBER ROAD, INC. AND SUBSIDIARIES | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (unaudited) | ||||||||||
| March 31, | December 31, | |||||||||
| 2014 | 2013 | |||||||||
|
| |||||||||
| Assets | ||||||||||
| Cash and cash equivalents | $ | 51,212,209 | $ | 5,147,735 | ||||||
| Accounts receivable, net | 7,502,560 | 11,017,671 | ||||||||
| Unbilled receivables | 512,417 | 144,067 | ||||||||
| Deferred commissions | 3,008,181 | 2,983,400 | ||||||||
| Prepaid expenses and other current assets | 1,353,779 | 869,108 | ||||||||
| Deferred offering costs | - | 2,786,376 | ||||||||
| Total current assets | 63,589,146 | 22,948,357 | ||||||||
| Property and equipment, net | 13,107,398 | 13,102,380 | ||||||||
| Goodwill | 24,476,157 | 24,476,157 | ||||||||
| Other intangibles, net | 1,153,657 | 1,201,034 | ||||||||
| Deferred commissions | 6,771,255 | 7,066,512 | ||||||||
| Deposits and other assets | 1,292,952 | 1,302,681 | ||||||||
| Total assets | $ | 110,390,565 | $ | 70,097,121 | ||||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||||
| Current liabilities: | ||||||||||
| Current installments of obligations under capital leases | $ | 1,048,432 | $ | 1,022,176 | ||||||
| Accounts payable | 2,479,161 | 2,568,161 | ||||||||
| Accrued expenses | 8,231,507 | 9,081,554 | ||||||||
| Deferred revenue | 24,014,595 | 26,115,001 | ||||||||
| Total current liabilities | 35,773,695 | 38,786,892 | ||||||||
| Capital lease obligations, less current portion | 1,838,628 | 2,068,308 | ||||||||
| Deferred revenue, less current portion | 3,494,433 | 4,641,631 | ||||||||
| Revolving credit facility | - | 6,978,525 | ||||||||
| Other noncurrent liabilities | 2,330,179 | 3,981,889 | ||||||||
| Total liabilities | 43,436,935 | 56,457,245 | ||||||||
| Commitments and contingencies | ||||||||||
| Total redeemable convertible preferred stock and puttable common stock | - | 76,921,359 | ||||||||
| Stockholders' equity (deficit): | ||||||||||
Common stock, $0.001 par value at March 31, 2014, no par value at December 31, 2013. Authorized, 38,100,100 shares; issued and outstanding 25,210,530 and 5,005,911 at March 31, 2014 and December 31, 2013, respectively | 25,211 | 15,221,195 | ||||||||
| Additional paid-in capital | 169,822,874 | - | ||||||||
| Accumulated other comprehensive income | (533,530 | ) | (485,917 | ) | ||||||
| Accumulated deficit | (102,360,925 | ) | (78,016,761 | ) | ||||||
| Total stockholders' equity (deficit) | 66,953,630 | (63,281,483 | ) | |||||||
| Total liabilities and stockholders' equity (deficit) | $ | 110,390,565 | $ | 70,097,121 | ||||||
| AMBER ROAD, INC. AND SUBSIDIARIES | ||||||||||
| Consolidated Statement of Operations | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Revenue: | ||||||||||
| Subscription | $ | 10,509,769 | $ | 8,747,187 | ||||||
| Professional Services | 4,479,239 | 2,845,877 | ||||||||
| Total revenue | 14,989,008 | 11,593,064 | ||||||||
| Cost of revenue: | ||||||||||
| Cost of subscription revenue | 3,344,728 | 3,005,199 | ||||||||
| Cost of professional services revenue | 2,900,324 | 2,016,431 | ||||||||
| Total cost of revenue | 6,245,052 | 5,021,630 | ||||||||
| Gross profit | 8,743,956 | 6,571,434 | ||||||||
| Operating expenses: | ||||||||||
| Sales and marketing | 4,848,024 | 3,673,254 | ||||||||
| Research and development | 2,188,474 | 1,941,140 | ||||||||
| General and administrative | 4,752,136 | 2,257,852 | ||||||||
| Restricted stock expense | 18,683,277 | 3,529,854 | ||||||||
| Total operating expenses | 30,471,911 | 11,402,100 | ||||||||
| Loss from operations | (21,727,955 | ) | (4,830,666 | ) | ||||||
| Interest income | 213 | 167 | ||||||||
| Interest expense | (112,977 | ) | (5,448 | ) | ||||||
| Loss before income taxes | (21,840,719 | ) | (4,835,947 | ) | ||||||
| Income tax expense | 99,012 | 201,243 | ||||||||
| Net loss | (21,939,731 | ) | (5,037,190 | ) | ||||||
| Accretion of redeemable convertible preferred stock and puttable common stock | (2,416,505 | ) | (1,212,764 | ) | ||||||
| Net loss attributable to common stockholders | $ | (24,356,236 | ) | $ | (6,249,954 | ) | ||||
| Net loss per common share: | ||||||||||
| Basic and diluted | $ | (3.95 | ) | $ | (1.68 | ) | ||||
| Weighted-average common shares outstanding: | ||||||||||
| Basic and diluted | 6,165,980 | 3,718,048 | ||||||||
| Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Net loss | $ | (21,939,731 | ) | $ | (5,037,190 | ) | ||||
| Depreciation and amortization expense | 1,129,492 | 796,251 | ||||||||
| Interest expense | 112,977 | 5,448 | ||||||||
| Interest income | (213 | ) | (167 | ) | ||||||
| Income tax expense | 99,012 | 201,243 | ||||||||
| EBITDA | (20,598,463 | ) | (4,034,415 | ) | ||||||
| Stock-based compensation | 173,534 | 76,809 | ||||||||
| Restricted stock expense | 18,683,277 | 3,529,854 | ||||||||
| Compensation related to loan forgiveness | 927,093 | - | ||||||||
| Puttable stock compensation | 13,691 | - | ||||||||
| Increase in fair value of contingent consideration liability | 81,564 | - | ||||||||
| Warrant expense | 1,244,635 | 496,634 | ||||||||
| Adjusted EBITDA | $ | 525,331 | $ | 68,882 | ||||||
| Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Net loss | $ | (21,939,731 | ) | $ | (5,037,190 | ) | ||||
| Stock-based compensation | 173,534 | 76,809 | ||||||||
| Restricted stock expense | 18,683,277 | 3,529,854 | ||||||||
| Compensation related to loan forgiveness | 927,093 | - | ||||||||
| Puttable stock compensation | 13,691 | - | ||||||||
| Increase in fair value of contingent consideration liability | 81,564 | - | ||||||||
| Warrant expense | 1,244,635 | 496,634 | ||||||||
| Non-GAAP adjusted net loss | $ | (815,937 | ) | $ | (933,893 | ) | ||||
| Adjusted non-GAAP net loss per common share: | ||||||||||
| Basic and diluted | $ | (0.03 | ) | $ | (0.25 | ) | ||||
| Weighted-average common shares outstanding: | ||||||||||
| GAAP weighted average number of common shares outstanding - basic and diluted | 6,165,980 | 3,718,048 | ||||||||
Additional weighted average shares giving effect to initial public offering and conversion of preferred stock at the beginning of the period | 18,806,464 | - | ||||||||
| Non-GAAP weighted average number of common shares outstanding - basic and diluted | 24,972,444 | 3,718,048 | ||||||||
| Reconciliation of Loss from Operations to Non-GAAP Adjusted Loss from Operations | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Loss from operations | $ | (21,727,955 | ) | $ | (4,830,666 | ) | ||||
| Stock-based compensation | 173,534 | 76,809 | ||||||||
| Restricted stock expense | 18,683,277 | 3,529,854 | ||||||||
| Compensation related to loan forgiveness | 927,093 | - | ||||||||
| Puttable stock compensation | 13,691 | - | ||||||||
| Increase in fair value of contingent consideration liability | 81,564 | - | ||||||||
| Warrant expense | 1,244,635 | 496,634 | ||||||||
| Adjusted loss from operations | $ | (604,161 | ) | $ | (727,369 | ) | ||||
CONTACT:
Investor Relations Contact:
ICR
Staci Mortenson, 201-804-6170
InvestorRelations@AmberRoad.com
or
Amber Road Contacts:
Annika Helmrich, 201-806-3656 (US & Canada)
AnnikaHelmrich@AmberRoad.com
or
Martijn van Gils, +31 (0) 207997790 (Europe & Asia)
MartijnvanGils@AmberRoad.com
