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ServiceSource Reports Fourth Quarter and Full-Year 2020 Financial Results

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2020 Revenue of $194.6 million

2020 GAAP Net Loss of $18.5 million; 2020 Non-GAAP Net Loss of $2.3 million

2020 Adjusted EBITDA of $4.3 million

ServiceSource (NASDAQ:SREV), the customer journey experience company, today announced financial results for the three months and year ended December 31, 2020.

"Throughout the disruption and uncertainty of 2020, market-leading technology companies relied on ServiceSource to preserve the value of their existing customer relationships and enhance the return on their go-to-market investments. Customer success and renewals became board-level priorities, while digitally-enabled, virtual selling became the dominant form of B2B customer acquisition and engagement," said Gary B. Moore, ServiceSource's chairman and chief executive officer. "In the fourth quarter and over the course of the year, we delivered for our clients through a prolonged period of constrained technology industry spend in nearly every sector. Against this backdrop, we grew closer to the world-class brands we serve and improved the health of our partnerships. We fully committed to a virtual first operating model that will define how and where we deliver our solutions going forward. And importantly, we demonstrated the strength and resilience of our people and our business with solid operating and financial results."

Key Financial Results – Fourth Quarter 2020

  • GAAP revenue was $51.1 million, compared with $54.9 million reported for Q4 2019.
  • GAAP net loss was $1.7 million or $0.02 per diluted share, compared with GAAP net loss of $2.5 million or $0.03 per diluted share reported for Q4 2019.
  • Non-GAAP net income was $2.3 million or $0.02 per diluted share, compared with non-GAAP net income of $0.6 million or $0.01 per diluted share reported for Q4 2019.
  • Adjusted EBITDA, a non-GAAP financial measure, was $4.8 million, compared with $2.7 million reported for Q4 2019.

Key Financial Results – Full-Year Ended December 31, 2020

  • GAAP revenue was $194.6 million, compared with $216.1 million reported for the year ended December 31, 2019.
  • GAAP net loss was $18.5 million or $0.19 per diluted share, compared with GAAP net loss of $18.7 million or $0.20 per diluted share reported for the year ended December 31, 2019.
  • Non-GAAP net loss was $2.3 million or $0.02 per diluted share, compared with non-GAAP net loss of $3.3 million or $0.04 per diluted share reported for the year ended December 31, 2019.
  • Adjusted EBITDA, a non-GAAP financial measure, was $4.3 million, compared with $4.2 million reported for the year ended December 31, 2019.
  • Ended the year with $36.3 million of cash and cash equivalents and restricted cash, including $15.0 million of borrowings under the Company's $40.0 million revolving line of credit.

A reconciliation of GAAP to non-GAAP financial measures is provided following the Condensed Consolidated Financial Statement tables contained within this press release.

Key Business Highlights – Full-Year Ended December 31, 2020

  • Grew revenue year-over-year with four of our five largest clients and signed expansion wins with seven of our top ten clients.
  • Won two new clients in the fourth quarter and six for the full year, all within the higher growth software and cloud sectors.
  • Signed a one-year contract in the fourth quarter to provide customer acquisition and conversion services for a rapidly growing Unified Communications as a Service (UCaaS) company.
  • Secured a one-year contract in the fourth quarter with a market-leading digital operations management platform provider to drive higher ARR retention rates through a proactive customer success and renewals management program.
  • Successfully renewed or extended approximately 81% of the annual contract value that was up for renewal during the year.

"We executed well throughout 2020 and finished the year strong," commented Chad Lyne, executive vice president and chief financial officer of ServiceSource. "Despite a challenging operating environment and some client-specific headwinds from the global pandemic, we expanded non-GAAP gross profit margins by 130 basis points and generated higher Adjusted EBITDA year-over-year. The investments we made in our client relationships, go-to-market teams, technology infrastructure, and virtual first operating model position us well for success in a market with attractive growth potential. With a solid balance sheet, ample liquidity, disciplined financial management, and strong operating fundamentals, we are confident in our ability to execute our long-term strategy to build value for our stockholders."

Business Outlook for Full-Year 2021

There are encouraging signs that the pace of economic activity and global technology spend will accelerate over the course of 2021. However, there remains a high degree of uncertainty regarding the timing of the recovery and how it may impact ServiceSource's clients, as well as the mid-market and small-to-midsize businesses that ServiceSource supports on behalf of its clients. Due to these factors, the Company will not be issuing guidance for fiscal 2021 at this time. Management will provide forward-looking contextual commentary during the earnings call and webcast that will accompany this release.

Quarterly Conference Call

ServiceSource will discuss its fourth quarter and full-year 2020 results on February 25, 2021, via teleconference at 9:30 a.m. Eastern Time. To access the call within the U.S., please dial (877) 293-5486, or outside the U.S. (914) 495-8592, at least five minutes prior to the start time. Conference ID number: 7582178. In addition, a live webcast of the call will also be available on the Investor Relations section of the ServiceSource website under Events and Presentations. The related slide presentation and a replay of the webcast will also be available on the Company's website at http://ir.servicesource.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding our financial management and our expectation to continue to invest in our strategic priorities and digital transformation initiatives. These forward-looking statements are based on our current assumptions and beliefs and involve risks and uncertainties that could cause our results to differ materially from our forward-looking statements. Those risks and uncertainties include: a decline in client renewals, the loss of one or more of our key clients, the contraction in our revenue from one or more of our key clients - either in the ordinary course of business or as a result of macroeconomic conditions resulting from the COVID-19 pandemic - in each case resulting in churn, or our clients not expanding their relationships with us; economic or other adverse events or conditions affecting the technology industry, including as a result of the COVID-19 pandemic; and other risks and uncertainties described more fully in our periodic reports filed with the Securities and Exchange Commission, which can be obtained online at the Commission's website at http://www.sec.gov. All forward-looking statements in this press release are based on information currently available to us, and except as may be legally required we assume no obligation to update these forward-looking statements.

About ServiceSource

ServiceSource International, Inc. (NASDAQ:SREV) is a global outsourced go-to-market services provider that accelerates B2B digital sales and customer success transformation. Our expert sales professionals, data-powered insights and proven methodologies scale and reimagine customer journey experiences (CJX™) into profitable business outcomes. Backed by more than 20 years of experience, ServiceSource drives billions of dollars in client value annually, conducting commerce in 45 languages and 175 countries. To learn more about how we design, develop and manage CJX solutions that transform the agility, speed, efficiency and value of our clients' growth initiatives, visit www.servicesource.com.

Trademarks

ServiceSource®, and any ServiceSource product or service names or logos above are trademarks of ServiceSource International, Inc. All other trademarks used herein belong to their respective owners.

Connect with ServiceSource:

http://www.facebook.com/ServiceSource

http://twitter.com/servicesource

http://www.linkedin.com/company/servicesource

http://www.youtube.com/user/ServiceSourceMKTG

ServiceSource International, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

For the Three Months Ended

December 31,

 

For the Year Ended

December 31,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net revenue

$

51,059

 

 

 

$

54,871

 

 

 

$

194,601

 

 

 

$

216,135

 

 

Cost of revenue(1)

33,626

 

 

 

37,459

 

 

 

137,041

 

 

 

153,155

 

 

Gross profit

17,433

 

 

 

17,412

 

 

 

57,560

 

 

 

62,980

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing(1)

5,951

 

 

 

7,075

 

 

 

24,999

 

 

 

30,009

 

 

Research and development(1)

1,416

 

 

 

1,146

 

 

 

5,602

 

 

 

4,848

 

 

General and administrative(1)

10,126

 

 

 

11,127

 

 

 

41,970

 

 

 

43,208

 

 

Restructuring and other related costs

839

 

 

 

93

 

 

 

1,542

 

 

 

1,929

 

 

Total operating expenses

18,332

 

 

 

19,441

 

 

 

74,113

 

 

 

79,994

 

 

Loss from operations

(899

)

 

 

(2,029

)

 

 

(16,553

)

 

 

(17,014

)

 

Interest and other expense, net

(229

)

 

 

(259

)

 

 

(1,279

)

 

 

(1,226

)

 

Loss before provision for income taxes

(1,128

)

 

 

(2,288

)

 

 

(17,832

)

 

 

(18,240

)

 

Provision for income tax expense

(536

)

 

 

(204

)

 

 

(709

)

 

 

(443

)

 

Net loss

$

(1,664

)

 

 

$

(2,492

)

 

 

$

(18,541

)

 

 

$

(18,683

)

 

Net loss per share, basic and diluted

$

(0.02

)

 

 

$

(0.03

)

 

 

$

(0.19

)

 

 

$

(0.20

)

 

Weighted-average common shares outstanding, basic and diluted

96,821

 

 

 

94,608

 

 

 

95,787

 

 

 

93,882

 

 

 

 

 

 

 

 

 

 

(1) Reported amounts include stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

For the Three Months Ended

December 31,

 

For the Year Ended

December 31,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cost of revenue

$

144

 

 

 

$

124

 

 

 

$

389

 

 

 

$

538

 

 

Sales and marketing

395

 

 

 

382

 

 

 

1,416

 

 

 

1,772

 

 

Research and development

24

 

 

 

17

 

 

 

57

 

 

 

41

 

 

General and administrative

716

 

 

 

654

 

 

 

3,003

 

 

 

2,811

 

 

Total stock-based compensation

$

1,279

$

1,177

$

4,865

 

 

$

5,162

ServiceSource International, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

December 31, 2020

 

December 31, 2019

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

34,006

 

 

 

$

27,089

 

 

Accounts receivable, net

38,890

 

 

 

41,754

 

 

Prepaid expenses and other

9,275

 

 

 

7,296

 

 

Total current assets

82,171

 

 

 

76,139

 

 

 

 

 

 

Property and equipment, net

29,948

 

 

 

36,149

 

 

ROU assets

29,798

 

 

 

36,396

 

 

Contract acquisition costs

872

 

 

 

1,602

 

 

Goodwill

6,334

 

 

 

6,334

 

 

Other assets

3,490

 

 

 

4,844

 

 

Total assets

$

152,613

 

 

 

$

161,464

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,204

 

 

 

$

4,392

 

 

Accrued expenses

3,217

 

 

 

3,366

 

 

Accrued compensation and benefits

18,342

 

 

 

16,700

 

 

Revolver

15,000

 

 

 

 

 

Operating lease liabilities

10,797

 

 

 

9,652

 

 

Other current liabilities

1,209

 

 

 

2,218

 

 

Total current liabilities

49,769

 

 

 

36,328

 

 

 

 

 

 

Operating lease liabilities, net of current portion

25,975

 

 

 

33,716

 

 

Other long-term liabilities

1,593

 

 

 

2,983

 

 

Total liabilities

77,337

 

 

 

73,027

 

 

 

 

 

 

Stockholders' equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

10

 

 

 

9

 

 

Treasury stock

(441

)

 

 

(441

)

 

Additional paid-in capital

379,696

 

 

 

374,525

 

 

Accumulated deficit

(304,607

)

 

 

(286,066

)

 

Accumulated other comprehensive income

618

 

 

 

410

 

 

Total stockholders' equity

75,276

 

 

 

88,437

 

 

Total liabilities and stockholders' equity

$

152,613

 

 

 

$

161,464

 

ServiceSource International, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

For the Year Ended December 31,

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

Net loss

$

(18,541

)

 

 

$

(18,683

)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

13,925

 

 

 

13,449

 

 

Amortization of contract acquisition costs

1,003

 

 

 

1,504

 

 

Amortization of ROU assets

9,841

 

 

 

9,715

 

 

Stock-based compensation

4,865

 

 

 

5,162

 

 

Restructuring and other related costs

1,460

 

 

 

1,866

 

 

Other

71

 

 

 

(168

)

 

Net changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

3,232

 

 

 

12,449

 

 

Prepaid expenses and other assets

(82

)

 

 

(1,558

)

 

Contract acquisition costs

(266

)

 

 

(442

)

 

Accounts payable

(3,213

)

 

 

2,441

 

 

Accrued compensation and benefits

(97

)

 

 

(646

)

 

Operating lease liabilities

(10,195

)

 

 

(8,678

)

 

Accrued expenses

(107

)

 

 

(102

)

 

Other liabilities

(1,495

)

 

 

(3,864

)

 

Net cash provided by operating activities

401

 

 

 

12,445

 

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

(7,855

)

 

 

(10,106

)

 

Net cash used in investing activities

(7,855

)

 

 

(10,106

)

 

Cash flows from financing activities:

 

 

 

Repayment on finance lease obligations

(952

)

 

 

(900

)

 

Proceeds from Revolver

27,000

 

 

 

 

 

Repayment of Revolver

(12,000

)

 

 

 

 

Proceeds from issuance of common stock

414

 

 

 

223

 

 

Payments related to minimum tax withholdings on RSU releases

(161

)

 

 

(182

)

 

Net cash provided by (used in) financing activities

14,301

 

 

 

(859

)

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash

96

 

 

 

124

 

 

Net change in cash and cash equivalents and restricted cash

6,943

 

 

 

1,604

 

 

Cash and cash equivalents and restricted cash, beginning of period

29,383

 

 

 

27,779

 

 

Cash and cash equivalents and restricted cash, end of period

$

36,326

 

 

 

$

29,383

 

 

Use of Non-GAAP Financial Measures

To supplement its Condensed Consolidated Financial Statements presented in accordance with generally accepted accounting principles, or GAAP, ServiceSource provides investors with non-GAAP gross profit, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share and Adjusted EBITDA. A reconciliation of these non-GAAP financial measures to the closest GAAP financial measure is presented in the following financial tables.

ServiceSource believes non-GAAP financial information provided in this release can assist investors in understanding and assessing its on-going core operations and prospects for the future and provides an additional tool for investors to use in comparing ServiceSource's financial results with other companies in the industry, many of which present similar non-GAAP financial measures to investors.

Non-GAAP gross profit consists of gross profit plus adjustments to stock-based compensation and amortization of internally developed software.

Non-GAAP net income (loss) consists of net income (loss) plus stock-based compensation, amortization of internally developed software, restructuring and other related costs, amortization of contract acquisition costs related to the initial adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"), costs attributable to establishing a litigation reserve, non-cash interest expense and applying an income tax rate of 26.5% on non-GAAP adjustments. Stock-based compensation expense is expected to vary depending on the number of new grants issued, changes in the Company's stock price, stock market volatility, expected option lives and risk-free interest rates, all of which are difficult to estimate.

EBITDA consists of net income (loss) plus provision for income tax expense (benefit), interest and other expense (income), net and depreciation and amortization. Adjusted EBITDA consists of EBITDA plus stock-based compensation, restructuring and other related costs, amortization of contract acquisition costs related to the initial adoption of ASC 606 and costs attributable to establishing a litigation reserve.

These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP.

ServiceSource International, Inc.

GAAP To Non-GAAP Reconciliation

(in thousands, except per share amounts)

(unaudited)

 

 

 

For the Three Months Ended

December 31,

 

For the Year Ended

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net revenue

 

$

51,059

 

 

$

54,871

 

 

$

194,601

 

 

$

216,135

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

17,433

 

 

$

17,412

 

 

$

57,560

 

 

$

62,980

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

144

 

 

124

 

 

389

 

 

538

 

 

Amortization of internally developed software

(B)

1,493

 

 

1,144

 

 

5,467

 

 

4,119

 

Non-GAAP gross profit

 

$

19,070

 

 

$

18,680

 

 

$

63,416

 

 

$

67,637

 

 

 

 

 

 

 

 

 

 

 

Gross profit %

 

 

 

 

 

 

 

 

GAAP gross profit

 

34.1

%

 

31.7

%

 

29.6

%

 

29.1

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

0.3

%

 

0.2

%

 

0.2

%

 

0.2

%

 

Amortization of internally developed software

(B)

2.9

%

 

2.1

%

 

2.8

%

 

1.9

%

Non-GAAP gross profit

 

37.3

%

 

34.0

%

 

32.6

%

 

31.3

%

Certain totals do not add due to rounding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

18,332

 

 

$

19,441

 

 

$

74,113

 

 

$

79,994

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

(1,135

)

 

(1,053

)

 

(4,476

)

 

(4,624

)

 

Amortization of internally developed software

(B)

(611

)

 

(468

)

 

(2,234

)

 

(1,683

)

 

Restructuring and other related costs

(C)

(839

)

 

(93

)

 

(1,542

)

 

(1,929

)

 

Amortization of contract acquisition costs - ASC 606 initial adoption

(D)

(91

)

 

(187

)

 

(605

)

 

(976

)

 

Litigation reserve

(E)

74

 

 

 

 

74

 

 

256

 

Non-GAAP operating expenses

 

$

15,730

 

 

$

17,640

 

 

$

65,330

 

 

$

71,038

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(1,664

)

 

$

(2,492

)

 

$

(18,541

)

 

$

(18,683

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

1,279

 

 

1,177

 

 

4,865

 

 

5,162

 

 

Amortization of internally developed software

(B)

2,104

 

 

1,612

 

 

7,701

 

 

5,802

 

 

Restructuring and other related costs

(C)

839

 

 

93

 

 

1,542

 

 

1,929

 

 

Amortization of contract acquisition costs - ASC 606 initial adoption

(D)

91

 

 

187

 

 

605

 

 

976

 

 

Litigation reserve

(E)

(74

)

 

 

 

(74

)

 

(256

)

 

Non-cash interest expense

(F)

18

 

 

17

 

 

71

 

 

73

 

 

Income tax effect on non-GAAP adjustments

(G)

(293

)

 

(7

)

 

1,537

 

 

1,650

 

Non-GAAP net income (loss)

 

$

2,300

 

 

$

587

 

 

$

(2,294

)

 

$

(3,347

)

 

 

 

 

 

 

 

 

 

Diluted net loss per share

 

 

 

 

 

 

 

 

GAAP net loss per share

 

$

(0.02

)

 

$

(0.03

)

 

$

(0.19

)

 

$

(0.20

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

0.01

 

 

0.01

 

 

0.05

 

 

0.05

 

 

Amortization of internally developed software

(B)

0.02

 

 

0.02

 

 

0.08

 

 

0.06

 

 

Restructuring and other related costs

(C)

0.01

 

 

0.00

 

 

0.02

 

 

0.02

 

 

Amortization of contract acquisition costs - ASC 606 initial adoption

(D)

0.00

 

 

0.00

 

 

0.01

 

 

0.01

 

 

Litigation reserve

(E)

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

Non-cash interest expense

(F)

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

Income tax effect on non-GAAP adjustments

(G)

0.00

 

 

0.00

 

 

0.02

 

 

0.02

 

Non-GAAP diluted net income (loss) per share

 

$

0.02

 

 

$

0.01

 

 

$

(0.02

)

 

$

(0.04

)

Certain totals do not add due to rounding

 

 

 

 

 

 

 

 

Shares used in calculating diluted net loss per share on a non-GAAP basis

(H)

96,821

 

 

94,608

 

 

95,787

 

 

93,882

 

Footnotes to GAAP to Non-GAAP Reconciliation

(A) Stock-based compensation. Included in our GAAP presentation of cost of revenue and operating expenses, stock-based compensation consists of expenses for stock options, stock unit awards and purchase rights under our stock purchase plan. We exclude stock-based compensation expense from our non-GAAP measures because some investors may view it as not reflective of our core operating performance as it is a non-cash expense.

(B) Amortization of internally developed software. Included in our GAAP presentation of cost of revenue and operating expenses, amortization of internally developed software reflects non-cash expense for software developed or obtained for internal use. We exclude these expenses from our non-GAAP measures because we believe they are not indicative of our core operating performance.

(C) Restructuring and other related costs. Included in our GAAP presentation, we incurred expenses related to our restructuring effort to better align our cost structure with current revenue levels. Restructuring and other related costs consist primarily of employees' severance payments, related employee benefits, related legal fees and charges related to leases and other contract termination costs. These are one-time in nature costs that are not indicative of our core operating performance.

(D) Amortization of contract acquisition costs - ASC 606 initial adoption. Upon adoption of ASC 606 using the modified retrospective approach, we capitalized approximately $3.3 million of previously expensed sales commissions from 2015, 2016 and 2017. Amortization of these amounts are included in our GAAP presentation as sales and marketing expense. We believe the non-cash amortization expense is not related to or indicative of our ongoing operating performance.

(E) Litigation reserve. The Company records a contingent liability when it is probable that a loss has been incurred and the amount is reasonably estimable in accordance with accounting for contingencies. These reserves are one-time in nature charges that are not indicative of our core operating performance.

(F) Non-cash interest expense. Under GAAP, we recognize interest expense at the effective interest rate which includes interest costs related to the amortization of debt issuance costs. The difference between the effective interest rate and the contractual interest rate is excluded from our assessment of our operating performance because we believe this non-cash expense is not indicative of ongoing operating performance. We believe that the exclusion of the non-cash interest expense provides investors a view of our core operating performance.

(G) Income tax effect on non-GAAP adjustments. This adjusts the provision for income taxes to reflect the effect of the non-GAAP items A, B, C, D, E and F noted above on our non-GAAP net income (loss).

(H) Shares used in calculating diluted net income (loss) per share on a non-GAAP basis. The share count for basic and diluted earnings per share is the same due to GAAP net losses for the year ended December 31, 2020 and 2019.

ServiceSource International, Inc.

Reconciliation of Net Loss to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

 

 

 

 

For the Three Months Ended

December 31,

 

For the Year Ended

December 31,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net loss

 

$

(1,664

)

 

 

$

(2,492

)

 

 

$

(18,541

)

 

 

$

(18,683

)

 

Provision for income tax expense

 

536

 

 

 

204

 

 

 

709

 

 

 

443

 

 

Interest and other expense, net

 

229

 

 

 

259

 

 

 

1,279

 

 

 

1,226

 

 

Depreciation and amortization(1)

 

3,594

 

 

 

3,291

 

 

 

13,925

 

 

 

13,449

 

 

EBITDA

 

2,695

 

 

 

1,262

 

 

 

(2,628

)

 

 

(3,565

)

 

Stock-based compensation

(A)

1,279

 

 

 

1,177

 

 

 

4,865

 

 

 

5,162

 

 

Restructuring and other related costs

(C)

839

 

 

 

93

 

 

 

1,542

 

 

 

1,929

 

 

Amortization of contract acquisition asset costs -

ASC 606 initial adoption

(D)

91

 

 

 

187

 

 

 

605

 

 

 

976

 

 

Litigation reserve

(E)

(74

)

 

 

 

 

 

(74

)

 

 

(256

)

 

Adjusted EBITDA

 

$

4,830

 

 

 

$

2,719

 

 

 

$

4,310

 

 

 

$

4,246

 

 

 

 

 

 

 

 

 

 

 

(1) Depreciation and amortization expense are comprised of the following:

 

 

 

 

 

 

 

For the Three Months Ended

December 31,

 

For the Year Ended

December 31,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Internally developed software amortization

 

$

2,104

 

 

 

$

1,612

 

 

 

$

7,701

 

 

 

$

5,802

 

 

Property and equipment depreciation

 

1,490

 

 

 

1,679

 

 

 

6,224

 

 

 

7,647

 

 

Depreciation and amortization

 

$

3,594

 

 

 

$

3,291

 

 

 

$

13,925

 

 

 

$

13,449

 

 

 

 

 

 

 

 

 

 

 

 

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