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Appian Announces Fourth Quarter and Full Year 2019 Financial Results

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Full year subscription revenue increased 34% year-over-year to $155.1 million

Full year total revenue increased 17% year-over-year to $266.3 million

TYSONS, Va., Feb. 20, 2020 (GLOBE NEWSWIRE) -- Appian (NASDAQ:APPN) today announced financial results for the fourth quarter and full year ended December 31, 2019.

"For the full year, we exceeded our guidance and grew subscription revenue by 34% to $155.1 million. Companies are choosing Appian because of our strong customer outcomes, growing partner ecosystem, and the speed of our low-code automation platform," said Matt Calkins, CEO & Founder.

Fourth Quarter 2019 Financial Highlights (under ASC 605):

  • Revenue: Subscription revenue was $43.1 million for the fourth quarter of 2019, up 28% compared to the fourth quarter of 2018. Total subscriptions revenue, which includes sales of our SaaS subscriptions, on-premises term license subscriptions and maintenance and support, increased 26% year-over-year to $44.3 million for the fourth quarter of 2019. Professional services revenue was $26.2 million for the fourth quarter of 2019, compared to $25.1 million for the fourth quarter of 2018. Total revenue was $70.5 million for the fourth quarter of 2019, up 17% compared to the fourth quarter of 2018. Subscription revenue retention rate was 116% as of December 31, 2019.
     
  • Operating loss and non-GAAP operating loss: GAAP operating loss was $(12.1) million for the fourth quarter of 2019, compared to $(13.3) million for the fourth quarter of 2018.  Non-GAAP operating loss was $(8.7) million for the fourth quarter of 2019, compared to $(8.5) million for the fourth quarter of 2018. 
     
  • Net loss and non-GAAP net loss: GAAP net loss was $(10.0) million for the fourth quarter of 2019, compared to $(13.9) million for the fourth quarter of 2018.  GAAP net loss per share attributable to common stockholders was $(0.15) for the fourth quarter of 2019, based on 67.3 million weighted-average shares outstanding, compared to $(0.22) for the fourth quarter of 2018, based on 63.8 million weighted-average shares outstanding.  Non-GAAP net loss was $(6.6) million for the fourth quarter of 2019, compared to $(9.1) million for the fourth quarter of 2018.  Non-GAAP net loss per share was $(0.10) for the fourth quarter of 2019, based on 67.3 million basic and diluted shares outstanding, compared to $(0.14) for the fourth quarter of 2018, based on 63.8 million basic and diluted shares outstanding. 
     
  • Adjusted EBITDA: Adjusted EBITDA was $(7.2) million for the full year 2019, compared to $(7.9) million for the fourth quarter of 2018. 

Full Year 2019 Financial Highlights (under ASC 605):

  • Revenue: Subscription revenue was $155.1 million for the full year 2019, up 34% compared to the full year 2018. Total subscriptions revenue was $160.1 million for the full year 2019, an increase of 27% from the prior year. Professional services revenue was $106.3 million for the full year 2019, an increase of 5% from the prior year. Total revenue was $266.3 million for the full year 2019, up 17% compared to the full year 2018.
     
  • Operating loss and non-GAAP operating loss: GAAP operating loss was $(49.1) million for the full year 2019, compared to $(46.7) million for full year 2018.  Non-GAAP operating loss was $(32.7) million for the full year 2019, compared to $(30.7) million for the full year 2018. 
     
  • Net loss and non-GAAP net loss: GAAP net loss was $(49.4) million for the full year 2019, compared to $(49.5) million for the full year 2018. GAAP net loss per basic and diluted share attributable to common stockholders was $(0.75) for the full year 2019, based on 65.5 million weighted average shares outstanding, compared to $(0.80) for the full year 2018, based on 62.1 million weighted average shares outstanding.  Non-GAAP net loss was $(32.8) million for the full year 2019, compared to $(33.4) million for the full year 2018.  Non-GAAP net loss per share was $(0.50) for the full year 2019, based on 65.5 million basic and diluted shares outstanding, compared to $(0.54) for the full year 2018, based on 62.1 million basic and diluted shares outstanding.
     
  • Adjusted EBITDA: Adjusted EBITDA was $(27.9) million for the full year 2019.
     
  • Balance sheet and cash flows: As of December 31, 2019, Appian had cash and cash equivalents of $159.8 million. For the fourth quarter of 2019, cash used in operating activities was $(6.0) million, compared with $(7.4) million in the fourth quarter of 2018. Cash used in operating activities was $(9.0) million for the year ended December 31, 2019, compared to cash used by operating activities $(31.3) million for the year ended December 31, 2018.  In accordance with U.S. GAAP, the $17.0 million of tenant improvement allowance reimbursements received during the year ended December 31, 2019 are a source of cash in operating activities, while the $32.4 million of capital expenditures, largely for the build-out of Appian's new headquarters and the purchase of property and equipment, are recorded as cash used in investing activities.

Appian adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), or ASC 606, on January 1, 2019, using the modified retrospective method.  Financial results for the quarter and year ended December 31, 2019 are presented in accordance with ASC 606 and for purposes of comparability, financial information for the quarter and year ended December 31, 2019 have also been disclosed under ASC Topic 605, Revenue Recognition, or ASC 605.  This press release and the associated fourth quarter 2019 earnings presentation, which can be found on Appian's website at https://investors.appian.com/investor-relations, includes additional information to reconcile the impact of the adoption of ASC 606.

Fourth Quarter 2019 Financial Highlights (under ASC 606):

  • Revenue: Cloud subscription revenue was $26.4 million for the fourth quarter of 2019. Total subscriptions revenue was $42.1 million.  Professional services revenue was $26.5 million. Total revenue was $68.6 million for the fourth quarter of 2019. Cloud subscription revenue retention rate, a new metric, was 115% as of December 31, 2019.
     
  • Operating loss and non-GAAP operating loss: GAAP operating loss was $(13.1) million for the fourth quarter of 2019.  Non-GAAP operating loss was $(9.7) million for the fourth quarter of 2019. 
     
  • Net loss and non-GAAP net loss: GAAP net loss was $(10.8) million for the fourth quarter of 2019. GAAP net loss per share attributable to common stockholders was $(0.16) for the fourth quarter of 2019, based on 67.3 million weighted average shares outstanding. Non-GAAP net loss was $(7.4) million for the fourth quarter of 2019. Non-GAAP net loss per share was $(0.11) for the fourth quarter of 2019, based on 67.3 million basic and diluted weighted average shares outstanding. 
     
  • Adjusted EBITDA: Adjusted EBITDA was $(8.2) million for the fourth quarter of 2019. 

Full Year 2019 Financial Highlights (under ASC 606):

  • Revenue: Cloud subscription revenue was $95.0 million for the full year 2019. Total subscriptions revenue was $151.3 million. Professional services revenue was $109.1 million. Total revenue was $260.4 million for the full year 2019.
     
  • Operating loss and non-GAAP operating loss: GAAP operating loss was $(50.5) million for the full year 2019.  Non-GAAP operating loss was $(34.0) million for the full year 2019. 
     
  • Net loss and non-GAAP net loss: GAAP net loss was $(50.7) million for the full year 2019.  GAAP net loss per basic share attributable to common stockholders was $(0.77) for the year 2019, based on 65.5 million weighted average shares outstanding.  Non-GAAP net loss was $(34.1) million for the full year 2019.  Non-GAAP net loss per share was $(0.52) for the full year 2019, based on 65.5 million basic and diluted shares outstanding.
     
  • Adjusted EBITDA: Adjusted EBITDA was $(29.3) million for the full year 2019. 

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release.  An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Fourth Quarter 2019 Business Highlights:

Financial Outlook:

The guidance below includes the adoption of ASC 606. As of February 20, 2020, guidance for the first quarter 2020 and full year 2020 under ASC 606 are as follows:

  • First Quarter 2020 Guidance:
    • Cloud subscription revenue is expected to be in the range of $27.8 million and $28.1 million, representing year-over-year growth of between 31% and 32%.1
    • Total revenue is expected to be in the range of $71.0 million and $71.5 million, representing year-over-year growth of between 18% and 19%. 
    • Adjusted EBITDA loss is expected to be in the range of $(12.0) million and $(11.0) million.
    • Non-GAAP net loss per share is expected to be in the range of $(0.20) and $(0.18). This assumes 67.6 million weighted average common shares outstanding.
       
  • Full Year 2020 Guidance:
    • Cloud subscription revenue is expected to be in the range of $121.3 million and $123.1 million, representing year-over-year growth of between 28% and 30%.
    • Total revenue is expected to be in the range of $296.0 million and $298.0 million, representing year-over-year growth of 14%. 
    • Adjusted EBITDA loss is expected to be in the range of $(34.0) million and $(32.0) million.
    • The impact from ASC 606 on full year 2020 subscriptions revenue is anticipated to be more than the $8.8 million decrease in 2019.  
    • Non-GAAP net loss per share is expected to be in the range of $(0.58) and $(0.55).  This assumes 68.3 million non-GAAP weighted average common shares outstanding.

1Under ASC 605, the estimated range for subscription revenue guidance for the first quarter 2020 represents a year-over-year growth rate of between 32% to 33%.

Conference Call Details:

Appian will host a conference call today, February 20, 2020, at 5:00 p.m. ET to discuss Appian's financial results for the fourth quarter and full year ended December 31, 2019 and business outlook. 

The live webcast of the conference call can be accessed on the Investor Relations page of Appian's website at http://investors.appian.com. To access the call, please dial (877) 407-0792 in the U.S. or (201) 689-8263 internationally.  Following the call, an archived webcast will be available at the same location on the Investor Relations page.  A telephone replay will be available for one week at (844) 512-2921 in the U.S. or (412) 317-6671 internationally with recording access code 13698412.

About Appian

Appian (NASDAQ:APPN) provides a low-code automation platform that accelerates the creation of high-impact business applications. Many of the world's largest organizations use Appian applications to improve customer experience, achieve operational excellence, and simplify global risk management and compliance. For more information, visit www.appian.com.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Appian provides investors with certain non-GAAP financial measures, including non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share,  non-GAAP weighted average shares outstanding and adjusted EBITDA. These non-GAAP financial measures exclude the effect of stock-based compensation expense and gain or loss on disposal of an asset. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and Appian's non-GAAP measures may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, please see the reconciliation of these non-GAAP financial measures to their nearest comparable GAAP measures at the end of this press release.  A reconciliation of non-GAAP guidance measures to the most comparable GAAP measures is not available on a forward-looking basis without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures.

Appian uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Appian's management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Appian's performance by excluding certain expenses that may not be indicative of its recurring core business operating results. Appian believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Appian's performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to historical performance as well as comparisons to competitors' operating results. Appian believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to measures used by management in its financial and operational decision-making and (2) they are used by Appian's institutional investors and the analyst community to help them analyze the health of Appian's business.

Forward-Looking Statements

This press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including statements regarding Appian's future financial and business performance for the first quarter and full-year 2020, future investment by Appian in its go-to-market initiatives, increased demand for the Appian platform, market opportunity and plans and objectives for future operations, including Appian's ability to drive continued subscription revenue and total revenue growth, are forward-looking statements. The words "anticipate," believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. Appian has based these forward-looking statements on its current expectations and projections about future events and financial trends that Appian believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties associated with Appian's ability to grow its business and manage its growth, Appian's ability to sustain its revenue growth rate, continued market acceptance of Appian's platform and adoption of low-code solutions to drive digital transformation, the fluctuation of Appian's operating results due to the length and variability of its sales cycle, competition in the markets in which Appian operates, risks and uncertainties associated with the composition and concentration of Appian's customer base and their demand for its platform and satisfaction with the services provided by Appian, the potential fluctuation of Appian's future quarterly results of operations, Appian's ability to shift its revenue towards subscriptions and away from professional services, Appian's ability to operate in compliance with applicable laws and regulations, Appian's strategic relationships with third parties and use of third-party licensed software and its platform's compatibility with third-party applications, and the timing of Appian's recognition of subscription revenue which may delay the effect of near term changes in sales on its operating results, and the additional risks and uncertainties set forth in the "Risk Factors" section of Appian's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 20, 2020 and other reports that Appian has filed with the Securities and Exchange Commission.  Moreover, Appian operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Appian's management to predict all risks, nor can Appian assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Appian may make. In light of these risks, uncertainties and assumptions, Appian cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Appian is under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law.

Investor Contact
Will Maina
ICR
703-442-1091
investors@appian.com

Media Contact
Nicole Greggs
Director, Media Relations
703-260-7868
nicole.greggs@appian.com


 
APPIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
 
  Year Ended December 31,
  2019   2018
  As Reported
(ASC 606)
  Impacts from
Adoption
  Without
Adoption
(ASC 605)
  As Reported
(ASC 605)
Assets              
Current assets              
Cash and cash equivalents $ 159,755       $       $ 159,755       $ 94,930    
Accounts receivable, net of allowance 70,408             70,408       79,383    
Deferred commissions, current 14,543       (6,061 )     20,604       14,020    
Prepaid expenses and other current assets 32,955       16,343       16,612       21,293    
Total current assets 277,661       10,282       267,379       209,626    
Property and equipment, net 39,554             39,554       7,539    
Operating right-of-use asset 24,205             24,205          
Deferred commissions, net of current portion 28,979       15,780       13,199       15,088    
Deferred tax assets 494             494       326    
Other assets 592             592       601    
Total assets 371,485       26,062       345,423       233,180    
Liabilities and Stockholders' Equity              
Current liabilities              
Accounts payable $ 5,222       $       $ 5,222       $ 9,249    
Accrued expenses 7,488             7,488       7,464    
Accrued compensation and related benefits 10,691             10,691       13,796    
Deferred revenue, current 82,201       (28,985 )     111,186       95,523    
Operating lease liability, current 3,836             3,836          
Finance lease liability, current 1,447             1,447          
Other current liabilities 1,395             1,395       2,369    
Total current liabilities 112,280       (28,985 )     141,265       128,401    
Operating lease liability, net of current portion 44,416             44,416          
Finance lease liability, net of current portion 2,375             2,375          
Deferred revenue, net of current portion 7,139       (4,891 )     12,030       16,145    
Deferred tax liabilities 38             38       42    
Deferred rent, net of current portion                   15,400    
Total liabilities 166,248       (33,876 )     200,124       159,988    
Stockholders' equity              
Class A common stock 3             3       3    
Class B common stock 3             3       3    
Additional paid-in capital 340,929             340,929       218,284    
Accumulated other comprehensive (loss) income (285 )     320       (605 )     542    
Accumulated deficit (135,413 )     59,618       (195,031 )     (145,640 )  
Total stockholders' equity 205,237       59,938       145,299       73,192    
Total liabilities and stockholders' equity $ 371,485       26,062       $ 345,423       $ 233,180    
                                     



 
APPIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
 
  Three Months Ended December 31,
  2019   2018
  As Reported
(ASC 606)
  Impacts from
Adoption
  Without
Adoption
(ASC 605)
  As Reported
(ASC 605)
Revenue:              
Subscriptions $ 42,108       $ (2,210 )     $ 44,318       $ 35,108    
Professional services 26,510       358       26,152       25,108    
Total revenue 68,618       (1,852 )     70,470       60,216    
Cost of revenue:              
Subscriptions 4,993             4,993       3,284    
Professional services 17,780             17,780       18,926    
Total cost of revenue 22,773             22,773       22,210    
Gross profit 45,845       (1,852 )     47,697       38,006    
Operating expenses:              
Sales and marketing 31,254       (860 )     32,114       30,177    
Research and development 15,625             15,625       12,332    
General and administrative 12,028             12,028       8,799    
Total operating expenses 58,907       (860 )     59,767       51,308    
Operating loss (13,062 )     (992 )     (12,070 )     (13,302 )  
Other (income) expense:              
Other (income) expense, net (2,822 )     (228 )     (2,594 )     510    
Interest expense 131             131       64    
Total other (income) expense (2,691 )     (228 )     (2,463 )     574    
Loss before income taxes (10,371 )     (764 )     (9,607 )     (13,876 )  
Income tax expense 426             426       27    
Net loss $ (10,797 )     $ (764 )     $ (10,033 )     $ (13,903 )  
Net loss per share attributable to common stockholders:              
Basic and diluted $ (0.16 )     $ (0.01 )     $ (0.15 )     $ (0.22 )  
Weighted average common shares outstanding:              
Basic and diluted 67,316,098             67,316,098       63,793,704    
                               


   
  Year Ended December 31,
  2019   2018
  As Reported
(ASC 606)
  Impacts from
Adoption
  Without
Adoption
(ASC 605)
  As Reported
(ASC 605)
Revenue:              
Subscriptions $ 151,299       $ (8,786 )     $ 160,085       $ 126,012    
Professional services 109,053       2,791       106,262       100,731    
Total revenue 260,352       (5,995 )     266,347       226,743    
Cost of revenue:              
Subscriptions 17,098             17,098       11,997    
Professional services 76,743             76,743       72,928    
Total cost of revenue 93,841             93,841       84,925    
Gross profit 166,511       (5,995 )     172,506       141,818    
Operating expenses:              
Sales and marketing 117,440       (4,625 )     122,065       105,992    
Research and development 58,043             58,043       44,724    
General and administrative 41,496             41,496       37,821    
Total operating expenses 216,979       (4,625 )     221,604       188,537    
Operating loss (50,468 )     (1,370 )     (49,098 )     (46,719 )  
Other (income) expense:              
Other (income) expense, net (941 )     (47 )     (894 )     2,295    
Interest expense 367             367       198    
Total other (income) expense (574 )     (47 )     (527 )     2,493    
Loss before income taxes (49,894 )     (1,323 )     (48,571 )     (49,212 )  
Income tax expense 820             820       239    
Net loss $ (50,714 )     $ (1,323 )     $ (49,391 )     $ (49,451 )  
Net loss per share attributable to common stockholders:              
Basic and diluted $ (0.77 )     $ (0.02 )     $ (0.75 )     $ (0.80 )  
Weighted average common shares outstanding:              
Basic and diluted 65,479,327             65,479,327       62,140,684    
                               



 
APPIAN CORPORATION AND SUBSIDIARIES
STOCK BASED COMPENSATION EXPENSE
(in thousands)
 
  Three Months Ended December 31,   Year Ended December 31,
  2019   2018   2019   2018
  (unaudited)        
Cost of revenue              
Subscriptions $ 185     $ 159     $ 647     $ 514  
Professional services 287     1,072     2,748     1,717  
Operating expenses              
Sales and marketing 771     1,692     4,742     3,473  
Research and development 497     1,310     3,480     2,416  
General and administrative 1,648     574     4,826     7,934  
Total stock-based compensation expense $ 3,388     $ 4,807     $ 16,443     $ 16,054  
                               



 
APPIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
  Year Ended December 31,
  2019   2018
  As Reported
(ASC 606)
  Impacts
from
Adoption
  Without
Adoption
(ASC 605)
  As Reported
(ASC 605)
Net loss $ (50,714 )     $ (1,323 )     $ (49,391 )     $ (49,451 )  
Adjustments to reconcile net loss to net cash used in operating activities:              
Depreciation and amortization 4,742             4,742       2,021    
Loss (gain) on disposal of equipment 146             146       (4 )  
Bad debt expense 99             99       211    
Deferred income taxes (330 )           (330 )     (218 )  
Stock-based compensation 16,443             16,443       16,054    
Changes in assets and liabilities:             601    
Accounts receivable 7,432             7,432       (23,332 )  
Prepaid expenses and other assets 8,754       4,095       4,659       (1,025 )  
Deferred commissions (9,319 )     (4,625 )     (4,694 )     (7,615 )  
Accounts payable and accrued expenses (4,043 )           (4,043 )     7,461    
Accrued compensation and related benefits (3,072 )           (3,072 )     (3 )  
Other current liabilities 1,318             1,318       1,823    
Deferred revenue 12,791       1,935       10,856       23,023    
Operating lease liabilities 6,827             6,827            
Deferred rent, non-current                   (266 )  
Net cash used in operating activities (8,926 )     82       (9,008 )     (31,321 )  
Cash flows from investing activities:              
Purchases of property and equipment (32,421 )           (32,421 )     (7,014 )  
Proceeds from sale of equipment                   4    
Net cash used in investing activities (32,421 )           (32,421 )     (7,010 )  
Cash flows from financing activities:              
Proceeds from public offering, net of underwriting discounts 101,653             101,653       58,258    
Payment of costs related to public offerings (350 )           (350 )     (429 )  
Proceeds from exercise of common stock options 4,899             4,899       3,133    
Principal payments on finance lease obligations (653 )           (653 )        
Net cash provided by financing activities 105,549             105,549       60,962    
Effect of foreign exchange rate changes on cash and cash equivalents 623       (82 )     705       (1,459 )  
Net increase  in cash and cash equivalents 64,825             64,825       21,172    
Cash and cash equivalents, beginning of period 94,930             94,930       73,758    
Cash and cash equivalents, end of period $ 159,755             $ 159,755       $ 94,930    
                                     



 
APPIAN CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except share and per share data)
(unaudited)
  Three Months Ended December 31,
  2019   2018
  As Reported
(ASC 606)
  Without
Adoption
(ASC 605)
  As Reported
(ASC 605)
Reconciliation of non-GAAP operating loss:          
GAAP operating loss $ (13,062 )     $ (12,070 )     $ (13,302 )  
Add back:          
Stock-based compensation expense 3,388       3,388       4,807    
Non-GAAP operating loss $ (9,674 )     $ (8,682 )     $ (8,495 )  
           
Reconciliation of non-GAAP net loss:          
GAAP net loss $ (10,797 )     $ (10,033 )     $ (13,903 )  
Add back:          
Stock-based compensation expense 3,388       3,388       4,807    
Non-GAAP net loss $ (7,409 )     $ (6,645 )     $ (9,096 )  
           
Non-GAAP earnings per share:          
Non-GAAP net loss $ (7,409 )     $ (6,645 )     $ (9,096 )  
Non-GAAP weighted average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
67,316,098       67,316,098       63,793,704    
Non-GAAP net loss per share, basic and diluted $ (0.11 )     $ (0.10 )     $ (0.14 )  
           
Reconciliation of non-GAAP net loss per share, basic and diluted:          
GAAP net loss per share attributable to common stockholders, basic and diluted (0.16 )     $ (0.15 )     $ (0.22 )  
Add back:          
Non-GAAP adjustments to net loss per share 0.05       0.05       0.08    
Non-GAAP net loss per share, basic and diluted $ (0.11 )     $ (0.10 )     $ (0.14 )  
           
Reconciliation of adjusted EBITDA:          
GAAP net loss $ (10,797 )     $ (10,033 )     $ (13,903 )  
Other (income) expense, net (2,822 )     (2,594 )     510    
Interest expense 131       131       64    
Income tax expense 426       426       27    
Depreciation expense 1,469       1,469       568    
Stock-based compensation expense 3,388       3,388       4,807    
Adjusted EBITDA $ (8,205 )     $ (7,213 )     $ (7,927 )  
                             


   
  Year Ended December 31,
  2019   2018
  As Reported
(ASC 606)
  Without
Adoption
(ASC 605)
  As Reported
(ASC 605)
Reconciliation of non-GAAP operating loss:          
GAAP operating loss $ (50,468 )     $ (49,098 )     $ (46,719 )  
Add back:          
Stock-based compensation expense 16,443       16,443       16,054    
Non-GAAP operating loss $ (34,025 )     $ (32,655 )     $ (30,665 )  
           
Reconciliation of non-GAAP net loss:          
GAAP net loss $ (50,714 )     $ (49,391 )     $ (49,451 )  
Add back:          
Stock-based compensation expense 16,443       16,443       16,054    
Loss (gain) on disposal of asset 146       146       $ (4 )  
Non-GAAP net loss $ (34,125 )     $ (32,802 )     $ (33,401 )  
           
Non-GAAP earnings per share:          
Non-GAAP net loss $ (34,125 )     $ (32,802 )     $ (33,401 )  
Non-GAAP weighted average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
65,479,327       65,479,327       62,140,684    
Non-GAAP net loss per share, basic and diluted $ (0.52 )     $ (0.50 )     $ (0.54 )  
           
Reconciliation of non-GAAP net loss per share, basic and diluted:          
GAAP net loss per share attributable to common stockholders, basic and diluted (0.77 )     $ (0.75 )     $ (0.80 )  
Add back:          
Non-GAAP adjustments to net loss per share 0.25       0.25       0.26    
Non-GAAP net loss per share, basic and diluted $ (0.52 )     $ (0.50 )     $ (0.54 )  
           
Reconciliation of adjusted EBITDA:          
GAAP net loss $ (50,714 )     $ (49,391 )     $ (49,451 )  
Other (income) expense, net (941 )     (894 )     2,295    
Interest expense 367       367       198    
Income tax expense 820       820       239    
Depreciation expense 4,742       4,742       2,020    
Stock-based compensation expense 16,443       16,443       16,054    
Adjusted EBITDA $ (29,283 )     $ (27,913 )     $ (28,645 )  
                             

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