Exhibit 99.1
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Eloqua Announces Fourth Quarter and
Full Year 2012 Financial Results
Vienna, VA (February 1, 2013) —Eloqua, the marketing system of record for modern marketers, today announced financial results for the three and twelve month period ended December 31, 2012.
Financial Highlights for the Full Year Ended December 31, 2012
Total revenue for the full year was $95.8 million, an increase of 34% from $71.3 million in 2011. Subscription and Support revenue was $83.9 million, an increase of 33% from $63.2 million in 2011. Professional Services revenue was $11.9 million, an increase of 46% from $8.1 million in 2011.
GAAP operating loss for the full year of 2012 was $(10.8) million, compared to GAAP operating loss of $(5.1) million in 2011. GAAP net loss attributable to common stockholders was $(78.2) million or $(5.40) per basic and diluted share, based on 14.5 million weighted average shares outstanding. GAAP net loss attributable to common stockholders for 2012 includes $66.9 million of accretion of redeemable preferred stock expense. This compares to a GAAP net loss attributable to common stockholders of $(95.8) million or $(116.74) per basic and diluted share, based on 0.8 million weighted average shares outstanding for 2011. GAAP net loss attributable to common stockholders for 2011 includes $89.7 million of accretion of redeemable preferred stock expense.
Non-GAAP operating loss for the full year 2012 was $(7.3) million, compared to a non-GAAP operating loss of $(3.3) million for the full year 2011. Non-GAAP net loss for the full year 2012 was $(7.4) million or $(0.22) per basic and diluted share, based on 33.5 million pro forma
weighted average shares outstanding, compared to a non-GAAP net loss of $(3.7) million for the full year 2011, or $(0.11), per basic and diluted share, based on 32.4 million pro forma weighted average shares outstanding.
A reconciliation of GAAP operating and net income to Non-GAAP operating and net income 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.”
Cash and cash equivalents were $92.9 million as of December 31, 2012, compared to $85.5 million as of September 30, 2012. For the full year 2012, net cash used in operating activities was ($6.4) million, compared to net cash provided by operating activities of $2.7 million for the full year 2011. Free cash flow was $(11.1) million for the full year 2012, compared to free cash flow of $(0.2) million for the full year 2011.
On December 20, 2012, Eloqua announced an agreement to be acquired by Oracle for $23.50 per share. A special meeting of the shareholders of Eloqua will be held on Friday, February 8, 2013, at 10:00 a.m., local time, at the offices of Goodwin Procter LLP, 901 New York Avenue, NW, Washington, DC 20001 to consider and vote on the proposed transaction.
Financial Highlights for the Fourth Quarter Ended December 31, 2012
Total revenue for the fourth quarter of 2012 was $27.0 million, an increase of 27% from $21.3 million in the fourth quarter of 2011. Subscription and Support revenue was $22.9 million, an increase of 28% from $17.9 million in the fourth quarter of 2011. Professional Services revenue was $4.1 million, an increase of 21% from $3.4 million in the fourth quarter of 2011.
GAAP operating loss for the fourth quarter of 2012 was $(3.8) million, compared to GAAP operating loss of $(1.1) million for the fourth quarter of 2011. GAAP net loss attributable to common stockholders was $(3.7) million or $(0.11) per basic and diluted share, based on 34.4 million weighted average shares outstanding. This compares to a GAAP net loss attributable to common stockholders of $(18.8) million or $(19.09) per basic and diluted share, based on 1.0 million weighted average shares outstanding, for the fourth quarter of 2011. GAAP net loss attributable to common stockholders for the fourth quarter of 2011 includes $17.4 million of accretion of redeemable preferred stock expense.
Non-GAAP operating loss for the fourth quarter of 2012 was $(2.6) million, compared to a non-GAAP operating loss of $(0.4) million for the fourth quarter of 2011. Non-GAAP net loss was $(2.6) million or $(0.07) per basic share and diluted, based on 34.4 million pro forma weighted average shares outstanding compared to non-GAAP net loss of $(0.6) million for the fourth quarter of 2011, or $(0.02) per basic and diluted share, based on 32.6 million pro forma weighted average shares outstanding.
Net cash used in operating activities was ($2.7) million for the fourth quarter of 2012, compared to net cash used in operating activities of ($1.0) million for the fourth quarter of 2011. Free cash flow was ($4.5) million for the fourth quarter of 2012, compared to free cash flow of ($1.6) million for the fourth quarter of 2011.
Non-GAAP Financial Measures
Eloqua has provided in this release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. This information includes non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, pro forma weighted average shares outstanding and free cash flow. Non-GAAP operating loss is based on GAAP operating loss and excludes stock-based compensation expense; non-GAAP net loss is based on GAAP net loss and excludes accretion of dividends on redeemable preferred stock, stock-based compensation expense, change in fair value of warrants and income tax (benefit) expense; free cash flow is based on net cash (used in) provided by operating activities less purchases of property and equipment. Eloqua uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures in evaluating Eloqua’s ongoing operational performance.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.
About Eloqua
Eloqua (ELOQ) is the marketing system of record for modern marketers. The company’s cloud software, professional services and education programs provide marketers with the technology and expertise needed to help marketing drive revenue. More than 100,000 global users from companies both large and small, rely on themarketing automation power of Eloqua to improvedemand generation andlead management while driving morequalified leads. Eloqua’s customers include AON, Dow Jones, ADP, Fidelity, Polycom, and National Instruments. The company is headquartered in Vienna, Virginia. For more information, visitwww.eloqua.com, subscribe to theIt’s All About Revenue blog, call866-327-8764, or emaildemand@eloqua.com.
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Investor Relations Contact:
Staci Mortenson
ICR
203-682-8273
staci.mortenson@icrinc.com
Media Contacts:
Sheila Lahar
Eloqua
617-651-8137
sheila.lahar@eloqua.com
Financial Statements follow on next page
ELOQUA, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS , EXCEPT SHARE DATA)
| | | | | | | | |
| | December 31, 2012 | | | December 31, 2011 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 92,914 | | | $ | 7,240 | |
Accounts receivable, net of reserve of $615 and $725, respectively | | | 30,802 | | | | 18,228 | |
Deferred commissions and other deferred costs | | | 1,846 | | | | 2,680 | |
Deferred tax asset | | | 572 | | | | 781 | |
Prepaid expense and other assets | | | 3,100 | | | | 4,153 | |
| | | | | | | | |
Total current assets | | | 129,234 | | | | 33,082 | |
Property and equipment, net of accumulated depreciation and amortization of $9,505 and 7,242, respectively | | | 6,193 | | | | 3,721 | |
Deferred commissions and other deferred costs | | | 526 | | | | 902 | |
Deferred tax asset | | | 3,965 | | | | 3,800 | |
| | | | | | | | |
Total assets | | $ | 139,918 | | | $ | 41,505 | |
| | | | | | | | |
| | |
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 3,846 | | | $ | 3,263 | |
Accrued employee compensation and related costs | | | 13,356 | | | | 3,479 | |
Accrued and other current liabilities | | | 7,531 | | | | 7,858 | |
Deferred revenue, current portion | | | 38,148 | | | | 28,863 | |
Current portion of long-term debt | | | — | | | | 834 | |
| | | | | | | | |
Total current liabilities | | | 62,881 | | | | 44,297 | |
Long-term debt, net of current portion | | | — | | | | 1,458 | |
Non current deferred revenue and other liabilities | | | 2,545 | | | | 1,943 | |
| | | | | | | | |
Total liabilities | | | 65,426 | | | | 47,698 | |
Redeemable convertible preferred stock: | | | | | | | | |
Series A preferred stock, $0.0001 par value, 12,124,650 shares authorized, issued and outstanding at December 31, 2011 and no shares outstanding at December 31, 2012; liquidation preference of $39,406 at December 31, 2011 | | | — | | | | 39,406 | |
Series B preferred stock, $0.0001 par value, 17,678,926 shares authorized, issued and outstanding at December 31, 2011 and no shares outstanding at December 31, 2012; liquidation preference of $57,456 at December 31, 2011 | | | — | | | | 57,456 | |
Series C preferred stock, $0.0001 par value, 21,483,563 shares authorized, and 19,766,821 shares issued and outstanding at December 31, 2011 and no shares outstanding at December 31, 2012; liquidation preference of $64,242 at December 31, 2011 | | | — | | | | 64,242 | |
| | | | | | | | |
Total redeemable convertible preferred stock | | | — | | | | 161,104 | |
| | | | | | | | |
Stockholders’ equity (deficit) | | | | | | | | |
Eloqua, Inc. stockholders’ equity (deficit): | | | | | | | | |
Common stock, $0.0001 par value; 100,000,000 and 90,000,000 shares authorized, 35,525,498 and 1,063,368 shares issued and outstanding at December 31, 2012 and December 31, 2011 | | | 3 | | | | — | |
Additional paid-in capital | | | 319,070 | | | | — | |
Accumulated deficit | | | (244,581 | ) | | | (169,259 | ) |
| | | | | | | | |
Total Eloqua, Inc. stockholders’ equity (deficit) | | | 74,492 | | | | (169,259 | ) |
Noncontrolling interest | | | — | | | | 1,962 | |
| | | | | | | | |
Total stockholders’ equity (deficit) | | | 74,492 | | | | (167,297 | ) |
| | | | | | | | |
Total liabilities, redeemable preferred stock and stockholders’ equity | | $ | 139,918 | | | $ | 41,505 | |
| | | | | | | | |
ELOQUA, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
| | | | | | | | | | | | | | | | |
| | Three months ended December 31, | | | Twelve months ended December 31, | |
| | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| | | | |
Revenue: | | | | | | | | | | | | | | | | |
Subscription and support | | $ | 22,879 | | | $ | 17,925 | | | $ | 83,906 | | | $ | 63,222 | |
Professional services | | | 4,084 | | | | 3,382 | | | | 11,856 | | | | 8,126 | |
| | | | | | | | | | | | | | | | |
Total revenue | | | 26,963 | | | | 21,307 | | | | 95,762 | | | | 71,348 | |
| | | | | | | | | | | | | | | | |
Cost of revenue: | | | | | | | | | | | | | | | | |
Subscription and support | | | 4,806 | | | | 3,191 | | | | 15,758 | | | | 12,330 | |
Professional services | | | 3,714 | | | | 3,415 | | | | 11,537 | | | | 10,718 | |
| | | | | | | | | | | | | | | | |
Total cost of revenue | | | 8,520 | | | | 6,606 | | | | 27,295 | | | | 23,048 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 18,443 | | | | 14,701 | | | | 68,467 | | | | 48,300 | |
| | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | |
Research and development | | | 3,821 | | | | 3,207 | | | | 13,664 | | | | 11,679 | |
Marketing and sales | | | 11,288 | | | | 8,071 | | | | 40,708 | | | | 29,481 | |
General and administrative | | | 7,109 | | | | 4,485 | | | | 21,419 | | | | 12,208 | |
Litigation settlement | | | — | | | | — | | | | 3,500 | | | | — | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 22,218 | | | | 15,763 | | | | 79,291 | | | | 53,368 | |
| | | | | | | | | | | | | | | | |
Loss from operations | | | (3,775 | ) | | | (1,062 | ) | | | (10,824 | ) | | | (5,068 | ) |
Other income (expense), net | | | 34 | | | | (237 | ) | | | (288 | ) | | | (707 | ) |
| | | | | | | | | | | | | | | | |
Loss before benefit (provision) for income taxes | | | (3,741 | ) | | | (1,299 | ) | | | (11,112 | ) | | | (5,775 | ) |
Benefit (provision) for income taxes | | | 46 | | | | (102 | ) | | | (152 | ) | | | (378 | ) |
| | | | | | | | | | | | | | | | |
Net loss | | | (3,695 | ) | | | (1,401 | ) | | | (11,264 | ) | | | (6,153 | ) |
Accretion of dividends on redeemable preferred stock | | | — | | | | (17,351 | ) | | | (66,920 | ) | | | (89,659 | ) |
| | | | | | | | | | | | | | | | |
Net loss attributable to common stockholders | | $ | (3,695 | ) | | $ | (18,752 | ) | | $ | (78,184 | ) | | $ | (95,812 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net loss per share attributable to common stockholders, basic and diluted | | $ | (0.11 | ) | | $ | (19.09 | ) | | $ | (5.40 | ) | | $ | (116.74 | ) |
| | | | | | | | | | | | | | | | |
Weighted average common shares outstanding, basic and diluted | | | 34,375,057 | | | | 982,471 | | | | 14,490,578 | | | | 820,734 | |
| | | | | | | | | | | | | | | | |
ELOQUA, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| | | | | | | | | | | | | | | | |
| | Three months ended December 31, | | | Twelve months ended December 31, | |
| | 2012 | | | 2011 | | | 2012 | | | 2011 | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | |
Net loss | | $ | (3,695 | ) | | $ | (1,401 | ) | | $ | (11,264 | ) | | $ | (6,153 | ) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 739 | | | | 506 | | | | 2,263 | | | | 1,872 | |
Stock-based compensation expense | | | 1,196 | | | | 682 | | | | 3,547 | | | | 1,812 | |
Foreign currency transaction gain (loss) | | | 3 | | | | 44 | | | | (41 | ) | | | 65 | |
Deferred income taxes | | | (87 | ) | | | 52 | | | | 40 | | | | 264 | |
Loss on disposal of fixed assets | | | — | | | | 173 | | | | — | | | | 173 | |
Change in fair value of Series C warrants | | | — | | | | 51 | | | | 189 | | | | 264 | |
Change in operating assets and liabilities: | | | | | | | | | | | | | | | | |
Accounts receivable, net | | | (10,876 | ) | | | (6,997 | ) | | | (12,574 | ) | | | (2,362 | ) |
Prepaid expenses and other assets | | | 494 | | | | (1,185 | ) | | | (464 | ) | | | (2,102 | ) |
Deferred commissions and other deferred costs | | | 176 | | | | 1,005 | | | | 1,210 | | | | (59 | ) |
Accounts payable and accrued and other current liabilities | | | 3,976 | | | | 4,746 | | | | 808 | | | | 5,200 | |
Deferred revenue | | | 5,672 | | | | 570 | | | | 9,285 | | | | 3,492 | |
Noncurrent deferred revenue and other liabilities | | | (254 | ) | | | 788 | | | | 606 | | | | 271 | |
| | | | | | | | | | | | | | | | |
Net cash (used in) provided by operating activities | | | (2,656 | ) | | | (966 | ) | | | (6,395 | ) | | | 2,737 | |
| | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | |
Purchases of property and equipment | | | (1,869 | ) | | | (669 | ) | | | (4,735 | ) | | | (2,898 | ) |
| | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | (1,869 | ) | | | (669 | ) | | | (4,735 | ) | | | (2,898 | ) |
| | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | |
Repayment of long-term debt | | | — | | | | (208 | ) | | | (2,292 | ) | | | (208 | ) |
Net IPO Proceeds | | | — | | | | — | | | | 85,760 | | | | — | |
Tax withholdings on stock options exercised | | | 9,708 | | | | | | | | 9,708 | | | | | |
Principal payments under capital lease obligations | | | — | | | | (152 | ) | | | — | | | | (321 | ) |
Common stock issued | | | 2,261 | | | | 84 | | | | 3,587 | | | | 446 | |
| | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | | | 11,969 | | | | (276 | ) | | | 96,763 | | | | (83 | ) |
| | | | | | | | | | | | | | | | |
Effect of exchange rate changes of cash and cash equivalents | | | (3 | ) | | | (44 | ) | | | 41 | | | | (65 | ) |
Net increase (decrease) in cash and cash equivalents | | | 7,441 | | | | (1,955 | ) | | | 85,674 | | | | (309 | ) |
Cash and cash equivalents at beginning of the period | | | 85,473 | | | | 9,195 | | | | 7,240 | | | | 7,549 | |
| | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of the period | | $ | 92,914 | | | $ | 7,240 | | | $ | 92,914 | | | $ | 7,240 | |
| | | | | | | | | | | | | | | | |
ELOQUA, INC.
UNAUDITED SUMMARY OF STOCK-BASED COMPENSATION INCLUDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS)
| | | | | | | | | | | | | | | | |
| | Three months ended December 31, | | | Twelve months ended December 31, | |
| | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| | | | |
Cost of revenue | | $ | 203 | | | $ | 89 | | | $ | 573 | | | $ | 284 | |
Sales and marketing | | | 454 | | | | 177 | | | | 1,160 | | | | 514 | |
Research and development | | | 134 | | | | 91 | | | | 439 | | | | 313 | |
General and administrative | | | 405 | | | | 325 | | | | 1,375 | | | | 701 | |
| | | | | | | | | | | | | | | | |
Total Stock-Based Compensation Expense | | $ | 1,196 | | | $ | 682 | | | $ | 3,547 | | | $ | 1,812 | |
| | | | | | | | | | | | | | | | |
ELOQUA, INC.
UNAUDITED NON-GAAP OPERATING LOSS, NON-GAAP NET LOSS, NON-GAAP NET LOSS PER SHARE AND FREE CASH FLOW RECONCILIATIONS TO GAAP
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
| | | | | | | | | | | | | | | | |
| | Three months ended December 31, | | | Twelve months ended December 31, | |
| | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| | | | |
Reconciliation of Loss From Operations to Non-GAAP Operating Loss | | | | | | | | | | | | | | | | |
| | | | |
Loss From Operations | | $ | (3,775 | ) | | $ | (1,062 | ) | | $ | (10,824 | ) | | $ | (5,068 | ) |
Adjustments to loss from operations: | | | | | | | | | | | | | | | | |
Stock-based compensation expense | | | 1,196 | | | | 682 | | | | 3,547 | | | | 1,812 | |
| | | | | | | | | | | | | | | | |
Non-GAAP Operating Loss | | $ | (2,579 | ) | | $ | (380 | ) | | $ | (7,277 | ) | | $ | (3,256 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Reconciliation of Net Loss to Non-GAAP Net Loss Per Share | | | | | | | | | | | | | | | | |
| | | | |
Net Loss | | $ | (3,695 | ) | | | (1,401 | ) | | $ | (11,264 | ) | | $ | (6,153 | ) |
Accretion of dividends on redeemable preferred stock | | | — | | | | (17,351 | ) | | | (66,920 | ) | | | (89,659 | ) |
| | | | | | | | | | | | | | | | |
Net loss attributable to common stockholders | | | (3,695 | ) | | | (18,752 | ) | | | (78,184 | ) | | | (95,812 | ) |
Adjustments to net loss attributable to common stockholders: | | | | | | | | | | | | | | | | |
Accretion of dividends on redeemable preferred stock | | | — | | | | 17,351 | | | | 66,920 | | | | 89,659 | |
Stock-based compensation expense | | | 1,196 | | | | 682 | | | | 3,547 | | | | 1,812 | |
Change in fair value of Series C warrants | | | — | | | | 51 | | | | 189 | | | | 264 | |
Income tax (benefit) expense | | | (46 | ) | | | 102 | | | | 152 | | | | 378 | |
| | | | | | | | | | | | | | | | |
Total adjustments to net loss from common stockholders | | | 1,150 | | | | 18,186 | | | | 70,808 | | | | 92,113 | |
| | | | | | | | | | | | | | | | |
Non-GAAP Net Loss | | $ | (2,545 | ) | | $ | (566 | ) | | $ | (7,376 | ) | | $ | (3,699 | ) |
| | | | | | | | | | | | | | | | |
Pro forma weighted average common shares outstanding, basic and diluted** | | | 34,375,057 | | | | 32,588,175 | | | | 33,478,768 | | | | 32,426,411 | |
| | | | | | | | | | | | | | | | |
Non-GAAP Net Loss Per Share | | $ | (0.07 | ) | | $ | (0.02 | ) | | $ | (0.22 | ) | | $ | (0.11 | ) |
| | | | | | | | | | | | | | | | |
|
** The pro forma weighted average common shares outstanding reflects 1) the conversion of preferred stock into common stock 2) the conversion of exchangeable shares into common stock and 3) the 8.2 million shares of common stock issued upon the initial public offering completed on August 7, 2012 as if these shares were outstanding for all periods included in the calculation. | |
| | | | |
Reconciliation of Net Cash (Used In) Provided By Operating Activities to Free Cash Flow | | | | | | | | | | | | | | | | |
| | | | |
Net Cash (Used In) Provided By Operating Activities | | $ | (2,656 | ) | | $ | (966 | ) | | $ | (6,395 | ) | | $ | 2,737 | |
Less: | | | | | | | | | | | | | | | | |
Purchases of property and equipment | | | (1,869 | ) | | | (669 | ) | | | (4,735 | ) | | | (2,898 | ) |
| | | | | | | | | | | | | | | | |
Free Cash Flow | | $ | (4,525 | ) | | $ | (1,635 | ) | | $ | (11,130 | ) | | $ | (161 | ) |
| | | | | | | | | | | | | | | | |