UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 4, 2015
Rocket Fuel Inc.
(Exact name of registrant as specified in its charter)
|
| | | | |
Delaware | | 001-36071 | | 30-0472319 |
(State or other jurisdiction of incorporation) | | (Commission File Number) | | (IRS Employer
Identification No.) |
1900 Seaport Blvd.
Redwood City, CA 94063
(Address of principal executive offices, including zip code)
(650) 595-1300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2015, Rocket Fuel Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2015. The attached press release includes a discussion of certain non-GAAP financial measures as well as a reconciliation of such non-GAAP financial measures to the corresponding GAAP financial measures.
A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
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| |
99.1 | Press release announcing financial results dated November 4, 2015 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | |
| | ROCKET FUEL INC. |
| | |
| | By: /s/ DAVID SANKARAN |
| | David Sankaran Chief Financial Officer
(Principal Financial and Accounting Officer) |
Date: November 4, 2015
EXHIBIT INDEX
Exhibit No. Description
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| |
99.1 | Press release announcing earnings dated November 4, 2015 |
Rocket Fuel Reports Financial Results for Third Quarter 2015,
Appoints New CEO and Announces Management Changes
Revenue Grew 10% and Non-GAAP Net Revenue Grew 15% Year over Year
Company Reports Positive Adjusted EBITDA in the Third Quarter
REDWOOD CITY, Calif., Nov. 4, 2015 - Rocket Fuel Inc. (NASDAQ: FUEL), a leading programmatic marketing platform provider that uses artificial intelligence (AI) at Big Data scale to optimize marketing ROI for global agencies and enterprise marketers, today reported results for the third quarter ended September 30, 2015. Rocket Fuel posted 10% growth in revenue and 15% growth in non-GAAP net revenue over the third quarter of last year, and positive adjusted EBITDA of $3.4 million.
Management Changes
Rocket Fuel appointed Randy Wootton as the Company's Chief Executive Officer and board member. Mr. Wootton's appointment is further detailed in the press release issued earlier today. Monte Zweben, who served as Interim CEO, remains on Rocket Fuel's Board of Directors and will serve as Executive Chairman of the Board. Dr. George John will resign from the Company and step down from Rocket Fuel's Board of Directors.
The Company also announced the resignation of Chief Financial Officer, David Sankaran, effective November 30, 2015. The Company appointed Cal Hoagland, a partner of FLG Partners, LLC, a leading Silicon Valley chief financial officer services and board advisory firm, as Interim Chief Financial Officer of Rocket Fuel, effective November 30, 2015. Mr. Hoagland has served as CFO and Interim CFO for public and private enterprise software, SaaS and technology companies, and will serve as Interim Chief Financial Officer until such time as the Company completes its search for a permanent Chief Financial Officer.
Financial Highlights for the Third Quarter of 2015
Revenue of $111.8 million increased 10% compared to $102.1 million for the third quarter of 2014. Revenue derived from the delivery of digital advertising to mobile, social, and video channels was $40.2 million in the third quarter, a decrease of 10% from $44.9 million for the third quarter of 2014. Revenue derived from delivery of advertising to the mobile channel was $32 million, an increase of 3% from $31 million in the third quarter of 2014.
Non-GAAP net revenue of $68.2 million increased 15% compared to $59.1 million non-GAAP Net Revenue in the third quarter of 2014. Non-GAAP Net Revenue is calculated by taking revenue and subtracting media costs.
Net loss was $(136.6) million, or $(3.19) per diluted share compared to a net loss of $(22.8) million, or $(0.61) per diluted share in the third quarter of 2014.
Non-GAAP adjusted net loss for the quarter was $(7.0) million, or $(0.16) per diluted share compared to an adjusted net loss of $(6.6) million, or $(0.18) per diluted share, for the third quarter of 2014.
Non-GAAP adjusted EBITDA was $3.4 million compared to $(3.0) million in the third quarter of 2014, and improved $2.0 million sequentially from $1.4 million in the second quarter of 2015.
Cash and cash equivalents were $83.1 million as of September 30, 2015, an increase of $2 million sequentially from June 30, 2015.
Active Customer count was 1,541 during the quarter, up from 1,446 in the third quarter of 2014.
Employee headcount was 962 as of September 30, 2015.
Goodwill Impairment Charge
The company recorded an estimated goodwill impairment charge of $117.5 million during the third quarter. As required under GAAP, the Company conducted a goodwill impairment test when the market value of its shares fell below the carrying value of its net assets. The preliminary results of that test indicate a full impairment of goodwill, resulting in the estimated non-cash charge. The Company will provide additional disclosure on this topic in its forthcoming Form 10-Q.
Financial Outlook for the Fourth Quarter 2015
For the fourth quarter of 2015, the Company expects:
- Non-GAAP net revenue to be in the range of $68 million to $72 million.
- Non-GAAP Adjusted EBITDA in the range of $3 million to $7 million.
Conference Call and Webcast Information
The Rocket Fuel third quarter 2015 teleconference and webcast is scheduled to begin at 2:00 PM Pacific time on Wednesday, November 4, 2015. To participate on the live call, analysts and investors should dial 1-888-542-0999, or outside the U.S. 719-457-1517, at least ten minutes prior to the call. Rocket Fuel will also offer a live and archived webcast of the conference call, accessible from the “Investors” section of its website at http://investor.rocketfuel.com.
Use of Non-GAAP Measures
This press release includes information relating to non-GAAP net revenue, non-GAAP adjusted EBITDA and non-GAAP adjusted net income (loss), which are financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These non-GAAP financial measures have been included in this press release because they are measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short- and long-term operational plans.
We define non-GAAP net revenue as GAAP revenue less media costs. Media costs consist of costs for advertising impressions we purchase from real-time advertising exchanges or other third parties. A limitation of non-GAAP net revenue is that it is a measure designed for internal purposes that may be unique to Rocket Fuel and may not enhance the comparability of Rocket Fuel’s results to other companies in the same industry that have similar business arrangements but present the impact of media costs differently. Our management compensates for this limitation by also considering the comparable GAAP financial measures of revenue, media costs and other cost of revenue.
We define non-GAAP adjusted EBITDA as GAAP net income (loss) before interest expense, other income (expense), net, income tax provision (benefit), depreciation and amortization expense, stock-based compensation expense and related payroll taxes, acquisition and restructuring related expenses, and impairment charges. Non-GAAP adjusted EBITDA has a number of limitations, including the following: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and non-GAAP adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; non-GAAP adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; non-GAAP adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation; non-GAAP adjusted EBITDA does not reflect acquisition and restructuring related expenses, tax and interest expenses that may represent payments reducing the cash available to us; and other companies, including those in our industry, may calculate non-GAAP adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because
of these limitations, our management considers non-GAAP adjusted EBITDA alongside other financial performance measures, including cash flow metrics, net income (loss) and our other GAAP results.
We define non-GAAP adjusted net income (loss) as GAAP net income (loss) excluding stock-based compensation expense, amortization of intangible assets, acquisition and restructuring related expenses and the estimated tax impact of the foregoing items, and impairment charges. A limitation of non-GAAP adjusted net income (loss) is that it is a measure that may be unique to Rocket Fuel and may not enhance the comparability of Rocket Fuel’s results to other companies in the same industry that define adjusted net loss differently. This measure may also exclude expenses that may have a material impact on Rocket Fuel’s reported financial results. Our management compensates for these limitations by also considering the comparable GAAP financial measure of net income (loss).
For a reconciliation of non-GAAP financial measures to the nearest comparable GAAP financial measures, see “Reconciliation from GAAP Revenue to Non-GAAP Net Revenue,” “Reconciliation from GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA” and “Reconciliation from GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss)” included in this press release.
These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP.
Cautions Regarding Forward-Looking Statements
This press release and the webcast of the same date contain “forward-looking statements” regarding future events and our future financial performance, including but not limited to: the expected speed of the CEO transition; expected progress towards positioning the company for future growth; the anticipated positive impact of our sales restructuring activities; expectations regarding our stated strategic priorities and other business initiatives including but not limited to our ability to grow our brand business and channel strategy; our expectations for margins going forward; potential restructuring charges relating to leases; our target DSO; expectations regarding capital and general cash spending and cash balances; the expected financial strength provided by our balance sheet; and expectations for fourth quarter non-GAAP net revenue and non-GAAP adjusted EBITDA. Words such as “expect,” “believe,” “intend,” “plan,” “goal”, “focus” and other similar words are also intended to identify such forward-looking statements.
These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from the results anticipated by such statements, including, without limitation: our limited operating history, particularly as a relatively new public company; our history of losses; fluctuations in our operating results, including but not limited to fluctuations due to seasonality; risks associated with our growth, including growth outside of the U.S.; failure to achieve expected synergies and efficiencies of operations between Rocket Fuel and [x+1]; failure to adequately address competition from agency trading desks; failure to achieve the expected benefits of our efficiency plan including various cost-cutting measures; and general market, political, economic and business conditions.
Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 16, 2015 and in subsequent SEC filings. These forward-looking statements are made as of the date of this press release and the related webcast, and Rocket Fuel expressly disclaims any obligation or undertaking to update the forward-looking statements contained herein or therein to reflect events that occur or circumstances that exist after the date on which the statements were made.
About Rocket Fuel
A leading Programmatic Marketing Platform provider, Rocket Fuel offers brands, agencies, and platform partners managed services, as well as a SaaS-based Data Management Platform (DMP) and Demand Side Platform (DSP), to optimize performance, awareness, and lift across marketing objectives, channels and devices. By applying artificial intelligence at big data scale, Rocket Fuel’s Moment Scoring™ technology performs a real-time calculation of each ad opportunity based on a marketer’s goal to determine the likelihood a consumer will engage in a desired action. Moment Scoring goes beyond 1:1 marketing by learning to predict what marketing actions to take with a campaign at a precise moment in time, which results in a much more efficient use of marketing dollars. Rocket Fuel serves 96 of the Ad Age 100, three of the top five agency holding company trading desks, and partners with some of the world’s leading CRM platforms, marketing platforms and systems integrators. Headquartered in Redwood City, California, Rocket Fuel has more than 20 offices worldwide and trades on the NASDAQ Global Select Market under the ticker symbol "FUEL." For more information, please visit http://www.rocketfuel.com or call 1-888-717-8873.
Investor Relations:
(650) 481-6082
ir@rocketfuel.com
Rocket Fuel, the Rocket Fuel logo, Moment Scoring, Advertising That Learns and Marketing That Learns are trademarks or registered trademarks of Rocket Fuel Inc. in the United States and other countries.
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| | | | | | | |
Rocket Fuel Inc. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands) |
| | | |
| September 30, | | December 31, |
| 2015 | | 2014 |
Assets | | | |
Current Assets: | | | |
Cash and cash equivalents | $ | 83,083 |
| | $ | 107,056 |
|
Accounts receivable, net | 110,660 |
| | 135,400 |
|
Deferred tax assets, net | 1,709 |
| | 1,716 |
|
Prepaid expenses | 3,499 |
| | 3,698 |
|
Other current assets | 1,689 |
| | 12,531 |
|
Total current assets | 200,640 |
| | 260,401 |
|
Property, equipment and software, net | 87,647 |
| | 89,441 |
|
Restricted cash | 2,235 |
| | 2,915 |
|
Intangible assets, net | 55,046 |
| | 69,299 |
|
Goodwill | — |
| | 115,412 |
|
Other assets | 1,326 |
| | 1,797 |
|
Total assets | $ | 346,894 |
| | $ | 539,265 |
|
| | | |
Liabilities and Stockholders' Equity | | | |
Current Liabilities: | | | |
Accounts payable | $ | 61,414 |
| | $ | 76,085 |
|
Accrued and other current liabilities | 32,484 |
| | 33,258 |
|
Deferred revenue | 1,651 |
| | 593 |
|
Current portion of capital leases | 7,421 |
| | 5,482 |
|
Revolving credit facility, net | 39,720 |
| | 39,705 |
|
Current portion of term loan, net | 6,000 |
| | 6,000 |
|
Total current liabilities | 148,690 |
| | 161,123 |
|
Term loan - Less current portion, net | 19,047 |
| | 23,335 |
|
Capital leases - Less current portion | 11,257 |
| | 12,341 |
|
Deferred rent - Less current portion | 24,955 |
| | 26,818 |
|
Deferred tax liabilities | 2,061 |
| | 2,068 |
|
Other liabilities | 1,171 |
| | 814 |
|
Total liabilities | 207,181 |
| | 226,499 |
|
| | | |
Stockholders' Equity: | | | |
Common stock | 43 |
| | 42 |
|
Additional paid-in capital | 446,410 |
| | 421,630 |
|
Accumulated other comprehensive loss | (88 | ) | | (120 | ) |
Accumulated deficit | (306,652 | ) | | (108,786 | ) |
Total stockholders' equity | 139,713 |
| | 312,766 |
|
Total Liabilities and Stockholders' Equity | $ | 346,894 |
| | $ | 539,265 |
|
|
| | | | | | | | | | | | | | | |
Rocket Fuel Inc. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except loss per share data) |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
Revenue | $ | 111,836 |
| | $ | 102,098 |
| | $ | 336,235 |
| | $ | 269,137 |
|
Costs and expenses: | | | | | | | |
Media costs | 43,673 |
| | 43,006 |
| | 138,389 |
| | 110,643 |
|
Other cost of revenue (1) | 20,105 |
| | 11,946 |
| | 59,887 |
| | 28,767 |
|
Research and development (1) | 11,022 |
| | 11,200 |
| | 34,136 |
| | 26,875 |
|
Sales and marketing (1) | 41,681 |
| | 40,421 |
| | 126,309 |
| | 103,969 |
|
General and administrative (1) | 12,328 |
| | 19,320 |
| | 44,663 |
| | 41,795 |
|
Impairment of goodwill | 117,521 |
| | — |
| | 117,521 |
| | — |
|
Restructuring | — |
| | — |
| | 6,471 |
| | — |
|
Total costs and expenses | 246,330 |
| | 125,893 |
| | 527,376 |
| | 312,049 |
|
Operating loss | (134,494 | ) | | (23,795 | ) | | (191,141 | ) | | (42,912 | ) |
Interest expense | 1,087 |
| | 1,157 |
| | 3,472 |
| | 2,085 |
|
Other (income) expense, net | 797 |
| | 1,999 |
| | 2,309 |
| | 2,443 |
|
Loss before income taxes | $ | (136,378 | ) | | $ | (26,951 | ) | | $ | (196,922 | ) | | $ | (47,440 | ) |
Income tax (benefit) provision | 213 |
| | (4,120 | ) | | 942 |
| | (3,625 | ) |
Net loss | $ | (136,591 | ) | | $ | (22,831 | ) | | $ | (197,864 | ) | | $ | (43,815 | ) |
| | | | | | | |
Basic and diluted net loss per share attributable to common stockholders | $ | (3.19 | ) | | $ | (0.61 | ) | | $ | (4.67 | ) | | $ | (1.23 | ) |
Basic and diluted weighted-average shares used to compute net loss per share attributable to common stockholders | 42,763 |
| | 37,230 |
| | 42,350 |
| | 35,490 |
|
| |
(1) | Includes unaudited stock-based compensation expense as follows (in thousands): |
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
Other cost of revenue | $ | 465 |
| | $ | 282 |
| | $ | 1,567 |
| | $ | 810 |
|
Research and development | 1,688 |
| | 1,279 |
| | 5,769 |
| | 3,577 |
|
Sales and marketing | 2,478 |
| | 2,683 |
| | 7,634 |
| | 7,598 |
|
General and administrative | 1,676 |
| | 1,685 |
| | 5,218 |
| | 4,900 |
|
| $ | 6,307 |
| | $ | 5,929 |
| | $ | 20,188 |
| | $ | 16,885 |
|
|
| | | | | | | | | | | | | | | |
Rocket Fuel Inc. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
OPERATING ACTIVITIES: | | | | | | | |
Net loss | $ | (136,591 | ) | | $ | (22,831 | ) | | $ | (197,864 | ) | | $ | (43,815 | ) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | | | | | | | |
Impairment of goodwill | 117,521 |
| | — |
| | 117,521 |
| | — |
|
Depreciation and amortization | 14,055 |
| | 5,749 |
| | 38,078 |
| | 12,525 |
|
Impairment of leasehold improvements | — |
| | — |
| | 2,704 |
| | — |
|
Stock-based compensation | 6,307 |
| | 5,952 |
| | 20,188 |
| | 17,193 |
|
Deferred taxes | 20 |
| | — |
| | — |
| | (3,894 | ) |
Excess tax benefit from stock-based activity | — |
| | (16 | ) | | — |
| | (179 | ) |
Other non-cash adjustments, net | 71 |
| | 189 |
| | 1,115 |
| | 422 |
|
Changes in operating assets and liabilities, net of effects of acquisition: | | | | | | | |
Accounts receivable | 8,771 |
| | (1,883 | ) | | 24,133 |
| | (5,062 | ) |
Prepaid expenses and other assets | 3,574 |
| | 2,216 |
| | 9,892 |
| | (12,398 | ) |
Accounts payable | (2,093 | ) | | 14,173 |
| | (13,631 | ) | | 13,925 |
|
Accrued and other liabilities | (1,671 | ) | | (4,180 | ) | | (1,489 | ) | | (1,475 | ) |
Deferred rent | (206 | ) | | 4,722 |
| | 684 |
| | 20,471 |
|
Deferred revenue | (280 | ) | | (134 | ) | | 1,058 |
| | 323 |
|
Net cash provided by (used in) operating activities | 9,478 |
| | 3,957 |
| | 2,389 |
| | (1,964 | ) |
| | | | | | | |
INVESTING ACTIVITIES: | | | | | | | |
Purchases of property, equipment and software | (712 | ) | | (21,145 | ) | | (10,797 | ) | | (40,286 | ) |
Business acquisition, net | (367 | ) | | (97,444 | ) | | (367 | ) | | (97,444 | ) |
Capitalized internal-use software development costs | (3,159 | ) | | (1,904 | ) | | (9,207 | ) | | (5,459 | ) |
Change in restricted cash | — |
| | — |
| | 636 |
| | (2,203 | ) |
Net cash used in investing activities | (4,238 | ) | | (120,493 | ) | | (19,735 | ) | | (145,392 | ) |
| | | | | | | |
FINANCING ACTIVITIES: | | | | | | | |
Proceeds from the issuance of common stock in public offering, net of issuance costs | — |
| | 273 |
| | — |
| | 115,403 |
|
Proceeds from employee stock plans, net | 234 |
| | 796 |
| | 3,373 |
| | 6,467 |
|
Excess tax benefit from stock-based activity | — |
| | 16 |
| | — |
| | 179 |
|
Tax withholdings related to net share settlements of restricted stock units | (441 | ) | | (188 | ) | | (974 | ) | | (241 | ) |
Repayment of capital lease obligations | (1,582 | ) | | (129 | ) | | (4,337 | ) | | (559 | ) |
Proceeds from debt facilities, net of debt issuance costs | — |
| | 35,000 |
| | (242 | ) | | 35,000 |
|
Repayment of debt facilities
| (1,500 | ) | | (11,133 | ) | | (4,500 | ) | | (11,133 | ) |
Net cash (used in) provided by financing activities | (3,289 | ) | | 24,635 |
| | (6,680 | ) | | 145,116 |
|
| | | | | | | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND EQUIVALENTS | 67 |
| | (7 | ) | | 53 |
| | (1 | ) |
CHANGE IN CASH AND CASH EQUIVALENTS | 2,018 |
| | (91,908 | ) | | (23,973 | ) | | (2,241 | ) |
CASH AND CASH EQUIVALENTS—Beginning of period | 81,065 |
| | 203,540 |
| | 107,056 |
| | 113,873 |
|
CASH AND CASH EQUIVALENTS—End of period | $ | 83,083 |
| | $ | 111,632 |
| | $ | 83,083 |
| | $ | 111,632 |
|
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | | | | | | | |
Cash paid for income taxes, net of refunds | $ | 380 |
| | $ | (10 | ) | | $ | 834 |
| | $ | 195 |
|
Cash paid for interest | 1,009 |
| | 807 |
| | 2,930 |
| | 1,598 |
|
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | |
Purchases of property and equipment recorded in accounts payable and accruals | $ | 1,664 |
| | $ | 7,523 |
| | $ | 1,664 |
| | $ | 7,523 |
|
Property, plant and equipment acquired under capital lease obligations | 3,330 |
| | 505 |
| | 5,116 |
| | 7,855 |
|
Vesting of early exercised options | 36 |
| | 98 |
| | 133 |
| | 674 |
|
Stock-based compensation capitalized in internal-use software costs | 732 |
| | 421 |
| | 2,018 |
| | 1,183 |
|
Issuance of common stock in connection with acquisition | — |
| | 82,421 |
| | — |
| | 82,421 |
|
|
| | | | | | | | | | | | | | | |
Rocket Fuel Inc. |
UNAUDITED NON-GAAP MEASURES |
(In thousands, except per share data) |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
Non-GAAP net revenue | $ | 68,163 |
| | $ | 59,092 |
| | $ | 197,846 |
| | $ | 158,494 |
|
Non-GAAP adjusted EBITDA | $ | 3,422 |
| | $ | (2,954 | ) | | $ | (8,810 | ) | | $ | (3,810 | ) |
Non-GAAP adjusted net income (loss) | $ | (6,957 | ) | | $ | (6,591 | ) | | $ | (39,233 | ) | | $ | (16,519 | ) |
Non-GAAP adjusted diluted net income (loss) per share | $ | (0.16 | ) | | $ | (0.18 | ) | | $ | (0.93 | ) | | $ | (0.47 | ) |
|
| | | | | | | | | | | | | | | |
Rocket Fuel Inc. |
UNAUDITED RECONCILIATION FROM GAAP REVENUE TO NON-GAAP NET REVENUE |
(In thousands) |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
Revenue | $ | 111,836 |
| | $ | 102,098 |
| | $ | 336,235 |
| | $ | 269,137 |
|
Less: Media costs | 43,673 |
| | 43,006 |
| | 138,389 |
| | 110,643 |
|
Non-GAAP net revenue | $ | 68,163 |
| | $ | 59,092 |
| | $ | 197,846 |
| | $ | 158,494 |
|
|
| | | | | | | | | | | | | | | |
Rocket Fuel Inc. |
UNAUDITED RECONCILIATION FROM GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA |
(In thousands) |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
Net loss | $ | (136,591 | ) | | $ | (22,831 | ) | | $ | (197,864 | ) | | $ | (43,815 | ) |
Adjustments: | | | | | | | |
Interest expense | 1,087 |
| | 1,157 |
| | 3,472 |
| | 2,085 |
|
Income tax (benefit) provision | 213 |
| | (4,120 | ) | | 942 |
| | (3,625 | ) |
Depreciation and amortization expense | 14,055 |
| | 5,749 |
| | 38,078 |
| | 12,525 |
|
Stock-based compensation expense | 6,307 |
| | 5,929 |
| | 20,188 |
| | 16,885 |
|
Other (income) expense, net | 797 |
| | 1,999 |
| | 2,309 |
| | 2,443 |
|
Acquisition expense | — |
| | 9,136 |
| | — |
| | 9,236 |
|
Restructuring expense | — |
| | — |
| | 6,471 |
| | — |
|
Payroll tax expense related to stock-based compensation | 33 |
| | 27 |
| | 73 |
| | 456 |
|
Impairment of goodwill | 117,521 |
| | — |
| | 117,521 |
| | — |
|
Total adjustments | 140,013 |
| | 19,877 |
| | 189,054 |
| | 40,005 |
|
Non-GAAP adjusted EBITDA | $ | 3,422 |
|
| $ | (2,954 | ) | | $ | (8,810 | ) | | $ | (3,810 | ) |
|
| | | | | | | | | | | | | | | |
Rocket Fuel Inc. |
UNAUDITED RECONCILIATION FROM GAAP NET LOSS TO NON-GAAP ADJUSTED NET INCOME (LOSS) |
(In thousands, except per share data) |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2015 | | 2014 | | 2015 | | 2014 |
Net loss | $ | (136,591 | ) | | $ | (22,831 | ) | | $ | (197,864 | ) | | $ | (43,815 | ) |
Stock-based compensation expense | 6,307 |
| | 5,929 |
| | 20,188 |
| | 16,885 |
|
Amortization of intangible assets | 5,799 |
| | 1,175 |
| | 14,253 |
| | 1,175 |
|
Acquisition expense | — |
| | 9,136 |
| | — |
| | 9,236 |
|
Restructuring expense | — |
| | — |
| | 6,471 |
| | — |
|
Tax impact of the above items | 7 |
| | — |
| | 198 |
| | — |
|
Impairment of goodwill | 117,521 |
| | — |
| | 117,521 |
| | — |
|
Non-GAAP adjusted net income (loss) | $ | (6,957 | ) |
| $ | (6,591 | ) | | $ | (39,233 | ) | | $ | (16,519 | ) |
| | | | | | | |
Basic and diluted net loss per share attributable to common stockholders | $ | (3.19 | ) | | $ | (0.61 | ) | | $ | (4.67 | ) | | $ | (1.23 | ) |
| | | | | | | |
Non-GAAP adjusted net income (loss) per diluted share | $ | (0.16 | ) | | $ | (0.18 | ) | | $ | (0.93 | ) | | $ | (0.47 | ) |
| | | | | | | |
Weighted average shares used in computing non-GAAP adjusted net income (loss) per diluted share | 42,763 |
| | 37,230 |
| | 42,350 |
| | 35,490 |
|
ROCKET FUEL INC. (NASDAQ:FUEL)
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ROCKET FUEL INC. (NASDAQ:FUEL)
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