Home IT Tenable Announces Fourth Quarter and Full Year 2019 Financial Results

Tenable Announces Fourth Quarter and Full Year 2019 Financial Results

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  • Fourth quarter revenue of $97.0 million, up 29% year-over-year.
  • Fourth quarter calculated current billings was $125.0 million, representing a 28% increase year-over-year.
  • Added 461 new enterprise platform customers and 52 net new six-figure enterprise platform customers in the fourth quarter.
  • Full year revenue of $354.6 million, up 33% year-over-year.

COLUMBIA, Md., Feb. 04, 2020 (GLOBE NEWSWIRE) — Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the Cyber Exposure company, today announced financial results for the quarter and year ended December 31, 2019.

“Q4 marked an end to a successful year,” said Amit Yoran, Chairman and CEO of Tenable. “We made great progress in the execution of our broader Cyber Exposure strategy with enhancements across our product portfolio and the launch of Lumin. We believe our investments in breadth of coverage, depth of analytics, prioritization and data science provide momentum heading into 2020 and will help us continue to transform how organizations manage and measure cyber risk.”

Fourth Quarter 2019 Financial Highlights

  • Revenue was $97.0 million, representing a 29% increase year-over-year.
  • Calculated current billings was $125.0 million, representing a 28% increase year-over-year.
  • GAAP loss from operations was $27.6 million, compared to a loss of $19.6 million in the fourth quarter of 2018.
  • Non-GAAP loss from operations was $11.1 million, compared to a loss of $10.8 million in the fourth quarter of 2018.
  • GAAP net loss was $38.3 million, compared to a loss of $19.6 million in the fourth quarter of 2018.
  • GAAP net loss per share was $0.39, compared to a loss of $0.21 in the fourth quarter of 2018.
  • Non-GAAP net loss was $11.1 million, compared to a loss of $10.9 million in the fourth quarter of 2018.
  • Pro forma non-GAAP net loss per share was $0.11, compared to a loss per share of $0.12 in the fourth quarter of 2018.
  • Net cash used in operating activities was $3.1 million, compared to $1.6 million in the fourth quarter of 2018.
  • Free cash flow was $(13.5) million, compared to $(3.1) million in the fourth quarter of 2018. Free cash flow in the fourth quarter of 2019 included $13.1 million of non-recurring payments related to the Indegy acquisition, $9.0 million of capital expenditures for our new headquarters, and a $3.8 million benefit related to employee stock purchase plan activity. Free cash flow in the fourth quarter of 2018 included a $4.0 million benefit related to employee stock purchase plan activity.

Full Year 2019 Financial Highlights

  • Revenue was $354.6 million, representing a 33% increase year-over-year.
  • Calculated current billings was $414.9 million, representing a 27% increase year-over-year.
  • GAAP loss from operations was $90.8 million, compared to a loss of $72.6 million in 2018.
  • Non-GAAP loss from operations was $42.8 million, compared to a loss of $49.1 million in 2018.
  • GAAP net loss was $99.0 million, compared to a loss of $73.5 million in 2018.
  • GAAP net loss per share was $1.03, compared to a loss of $1.38 in 2018.
  • Non-GAAP net loss was $40.5 million, compared to a loss of $50.3 million in 2018.
  • Pro forma non-GAAP net loss per share was $0.42, compared to a loss per share of $0.59 in 2018.
  • Cash and cash equivalents and short-term investments were $212.3 million at December 31, 2019, compared to $283.2 million at December 31, 2018. The decrease in cash was primarily related to our acquisition of Indegy.
  • Net cash used in operating activities was $10.7 million, compared to $2.6 million used in 2018.
  • Free cash flow was $(31.4) million, compared to $(8.3) million in 2018. Free cash flow in 2019 included $13.1 million of non-recurring payments related to the Indegy acquisition, $11.4 million of capital expenditures for our new headquarters, and a $0.9 million reduction related to employee stock purchase plan activity. Free cash flow in 2018 included a $6.3 million benefit related to employee stock purchase plan activity.

Fourth Quarter 2019 and Recent Business Highlights

  • Added 461 new enterprise platform customers and 52 net new six-figure customers.
  • Extended depth of operational technology (OT) expertise with the acquisition of Indegy to deliver a unified, risk-based platform for IT and OT security.
  • Expanded LuminTM analytic capabilities with an assessment maturity score, which helps organizations move beyond vulnerability prioritization to actionable metrics and recommended actions based on security program maturity.
  • Broadened cloud security capabilities with Microsoft Azure Security Center API integration and a new, integrated offering to secure cloud workloads with Golden Amazon Machine Images (AMIs) pipeline. Both integrations represent a critical step in ensuring that organizations of all sizes can build cybersecurity best practices directly into their multi or hybrid cloud strategies.
  • Selected as the preferred vulnerability management partner for BeyondTrust Enterprise Vulnerability Management customers as it exits the vulnerability management market.

Financial Outlook

For the first quarter of 2020, we currently expect:

  • Revenue in the range of $100.0 million to $101.0 million.
  • Non-GAAP loss from operations in the range of $18.0 million to $17.0 million.
  • Non-GAAP net loss in the range of $19.0 million to $18.0 million.
  • Non-GAAP net loss per share in the range of $0.19 to $0.18, assuming 98.7 million weighted average shares outstanding.

For the year ending December 31, 2020, we currently expect:

  • Revenue in the range of $435.0 million to $440.0 million.
  • Calculated current billings in the range of $500.0 million to $510.0 million.
  • Non-GAAP loss from operations in the range of $38.0 million to $33.0 million.
  • Non-GAAP net loss in the range of $41.0 million to $36.0 million, assuming a provision for income taxes of $6.5 million.
  • Non-GAAP net loss per share in the range of $0.41 to $0.36, assuming 100.1 million weighted average shares outstanding.

Conference Call Information

Tenable will host a conference call at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. A replay of the webcast will be available until February 18, 2020.

About Tenable

Tenable® is the Cyber Exposure company. Over 30,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include more than 50 percent of the Fortune 500, more than 30 percent of the Global 2000, and large government agencies. Learn more at tenable.com.

Contact Information

Investor Relations
Andrea DiMarco
[email protected]

Media Relations
Cayla Baker
[email protected]

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our 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 assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2018, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and other filings that we make from time to time with the SEC, which are available on the SEC’s website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our 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 we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures and Other Key Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We present these non-GAAP financial measures to assist investors in seeing our financial performance using a management view and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash (used in) provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after purchases of property and equipment, for investment in our business and to make acquisitions. We believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash.

Non-GAAP Loss from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effects of stock-based compensation, acquisition-related expenses and amortization of acquired intangible assets. Acquisition-related expenses include transaction expenses and costs related to the transfer of acquired intellectual property.

Non-GAAP Net Loss, Non-GAAP Net Loss Per Share and Pro Forma Non-GAAP Net Loss Per Share: We define non-GAAP net loss as GAAP net loss attributable to common stockholders, excluding the effect of the accretion of Series A and B redeemable convertible preferred stock, stock-based compensation, acquisition-related expenses and amortization of acquired intangible assets, including the applicable tax impact. We use non-GAAP net loss to calculate non-GAAP net loss per share and pro forma non-GAAP net loss per share. Pro forma non-GAAP net loss per share is calculated by giving effect to the conversion of our redeemable convertible preferred stock into common stock as though the conversion occurred at the beginning of each period presented prior to 2019.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation and acquisition-related expenses.

TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

  Three Months Ended
December 31,
  Year Ended
 December 31,
(in thousands, except per share data) 2019   2018   2019   2018
Revenue $ 97,049     $ 75,221     $ 354,586     $ 267,360  
Cost of revenue(1) 18,429     12,399     60,818     43,167  
Gross profit 78,620     62,822     293,768     224,193  
Operating expenses:              
Sales and marketing(1) 62,632     47,380     228,035     173,344  
Research and development(1) 22,668     21,169     87,064     76,698  
General and administrative(1) 20,873     13,864     69,468     46,732  
Total operating expenses 106,173     82,413     384,567     296,774  
Loss from operations (27,553 )   (19,591 )   (90,799 )   (72,581 )
Interest income, net 1,153     1,510     5,830     2,355  
Other expense, net (104 )   (326 )   (680 )   (931 )
Loss before income taxes (26,504 )   (18,407 )   (85,649 )   (71,157 )
Provision for income taxes 11,801     1,207     13,364     2,364  
Net loss (38,305 )   (19,614 )   (99,013 )   (73,521 )
Accretion of Series A and B redeemable convertible preferred stock             (434 )
Net loss attributable to common stockholders $ (38,305 )   $ (19,614 )   $ (99,013 )   $ (73,955 )
               
Net loss per share attributable to common stockholders, basic and diluted $ (0.39 )   $ (0.21 )   $ (1.03 )   $ (1.38 )
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 97,738     92,187     96,014     53,669  

_______________
(1)             Includes stock-based compensation as follows:

  Three Months Ended
December 31,
  Year Ended
 December 31,
  2019   2018   2019   2018
Cost of revenue $ 729     $ 824     $ 2,817     $ 1,707  
Sales and marketing 4,930     2,927     16,032     6,911  
Research and development 2,316     2,210     8,911     5,804  
General and administrative 4,277     2,708     15,683     8,453  
Total stock-based compensation $ 12,252     $ 8,669     $ 43,443     $ 22,875  

TENABLE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)

  December 31,
(in thousands, except per share data) 2019   2018
Assets      
Current assets:      
Cash and cash equivalents $ 74,363     $ 165,116  
Short-term investments 137,904     118,119  
Accounts receivable (net of allowance for doubtful accounts of $764 and $188 at December 31, 2019 and 2018, respectively) 94,827     68,261  
Deferred commissions 28,499     23,272  
Prepaid expenses and other current assets 27,369     22,020  
Total current assets 362,962     396,788  
Property and equipment, net 26,847     11,348  
Deferred commissions (net of current portion) 43,766     36,162  
Operating lease right-of-use assets 42,847     8,504  
Intangible assets, net 15,508     427  
Goodwill 54,138     265  
Other assets 12,544     7,118  
Total assets $ 558,612     $ 460,612  
       
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 1,732     $ 171  
Accrued expenses 8,436     5,554  
Accrued compensation 36,634     29,594  
Deferred revenue 274,348     213,644  
Operating lease liabilities 5,209     4,262  
Other current liabilities 1,284     1,079  
Total current liabilities 327,643     254,304  
Deferred revenue (net of current portion) 88,779     76,259  
Operating lease liabilities (net of current portion) 40,663     6,055  
Other liabilities 2,622     2,231  
Total liabilities 459,707     338,849  
Stockholders’ equity:      
Common stock (par value: $0.01; 500,000 shares authorized, 98,587 and 93,126 shares issued and outstanding at December 31, 2019 and 2018, respectively) 986     931  
Additional paid-in capital 662,990     586,940  
Accumulated other comprehensive income 50      
Accumulated deficit (565,121 )   (466,108 )
Total stockholders’ equity 98,905     121,763  
Total liabilities and stockholders’ equity $ 558,612     $ 460,612  

TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

  Year Ended December 31,
(in thousands) 2019   2018
Cash flows from operating activities:      
Net loss $ (99,013 )   $ (73,521 )
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 6,880     6,192  
Stock-based compensation 41,610     22,875  
Other 3,459     533  
Changes in operating assets and liabilities:      
Accounts receivable (25,941 )   (17,408 )
Prepaid expenses and other current assets (5,188 )   (6,105 )
Deferred commissions (12,831 )   (9,258 )
Other assets (3,336 )   (1,876 )
Accounts payable and accrued expenses 4,244     294  
Accrued compensation 6,269     11,112  
Deferred revenue 72,799     64,085  
Other current liabilities 255     408  
Other liabilities 49     110  
Net cash used in operating activities (10,744 )   (2,559 )
       
Cash flows from investing activities:      
Purchases of property and equipment (20,674 )   (5,733 )
Purchases of investments (242,059 )   (117,488 )
Sales and maturities of investments 224,594      
Business combination, net of cash acquired (74,911 )    
Net cash used in investing activities (113,050 )   (123,221 )
       
Cash flows from financing activities:      
Proceeds from initial public offering, net of underwriting discounts and commissions     268,531  
Payments of costs related to initial public offering     (3,932 )
Principal payments under finance lease obligations (16 )   (1,443 )
Proceeds from stock issued in connection with the employee stock purchase plan 15,129      
Proceeds from the exercise of stock options 19,048     1,668  
Repurchases of common stock     (75 )
Net cash provided by financing activities 34,161     264,749  
Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,080 )   (1,063 )
Net (decrease) increase in cash and cash equivalents and restricted cash (90,713 )   137,906  
Cash and cash equivalents and restricted cash at beginning of year 165,378     27,472  
Cash and cash equivalents and restricted cash at end of year $ 74,665     $ 165,378  

TENABLE HOLDINGS, INC.
REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)

Revenue Three Months Ended
December 31,
  Year Ended
 December 31,
(in thousands) 2019   2018   2019   2018
Subscription revenue $ 80,939     $ 59,259     $ 290,549     $ 205,827  
Perpetual license and maintenance revenue 13,296     13,869     54,173     54,622  
Professional services and other revenue 2,814     2,093     9,864     6,911  
Revenue(1) $ 97,049     $ 75,221     $ 354,586     $ 267,360  

_______________
(1)  Recurring revenue, which includes revenue from subscription arrangements for software and cloud-based solutions and maintenance associated with perpetual licenses represented 93%, 90%, 92% and 89% of revenue for the three months ended December 31, 2019 and 2018 and the year ended December 31, 2019 and 2018, respectively.

Calculated Current Billings Three Months Ended
December 31,
  Year Ended
 December 31,
(in thousands) 2019   2018   2019   2018
Revenue $ 97,049     $ 75,221     $ 354,586     $ 267,360  
Deferred revenue (current), end of period 274,348     213,644     274,348     213,644  
Deferred revenue (current), beginning of period(1) (246,410 )   (191,578 )   (214,069 )   (154,898 )
Calculated current billings $ 124,987     $ 97,287     $ 414,865     $ 326,106  

_______________
(1)  Deferred revenue (current), beginning of period for the three months and year ended December 31, 2019 includes $0.4 million related to Indegy’s deferred revenue at the acquisition date.

Free Cash Flow Three Months Ended
December 31,
  Year Ended
 December 31,
(in thousands) 2019   2018   2019   2018
Net cash used in operating activities $ (3,072 )   $ (1,554 )   $ (10,744 )   $ (2,559 )
Purchases of property and equipment (10,412 )   (1,593 )   (20,674 )   (5,733 )
Free cash flow(1) $ (13,484 )   $ (3,147 )   $ (31,418 )   $ (8,292 )

________________
(1)  Free cash flow in the three months and year ended December 31, 2019 included non-recurring cash payments totaling $13.1 million associated with the Indegy acquisition, including $6.7 million for income taxes on the transfer of acquired intellectual property, $3.1 million for other costs related to the intellectual property transfer, $1.8 million for the settlement of unvested acquiree equity awards, and $1.5 million for acquisition-related expenses. Capital expenditures related to our new headquarters in the three months and year ended December 31, 2019 were $9.0 million and $11.4 million, respectively. Contributions to our employee stock purchase plan during the three months ended December 31, 2019 and 2018 and year ended December 31, 2019 and 2018 impacted free cash flow by $3.8 million, $4.0 million, $(0.9) million and $6.3 million, respectively.

Non-GAAP Loss from Operations and Non-GAAP Operating Margin Three Months Ended
December 31,
  Year Ended
 December 31,
(dollars in thousands) 2019   2018   2019   2018
Loss from operations $ (27,553 )   $ (19,591 )   $ (90,799 )   $ (72,581 )
Stock-based compensation 12,252     8,669     43,443     22,875  
Acquisition-related expenses 3,970         3,970      
Amortization of acquired intangible assets 193     150     620     603  
Non-GAAP loss from operations $ (11,138 )   $ (10,772 )   $ (42,766 )   $ (49,103 )
Operating margin (28 )%   (26 )%   (26 )%   (27 )%
Non-GAAP operating margin (11 )%   (14 )%   (12 )%   (18 )%
Non-GAAP Net Loss, Non-GAAP Net Loss Per Share and  Pro forma Non-GAAP Net Loss Per Share Three Months Ended
December 31,
  Year Ended
 December 31,
(in thousands, except per share data) 2019   2018   2019   2018
Net loss attributable to common stockholders $ (38,305 )   $ (19,614 )   $ (99,013 )   $ (73,955 )
Accretion of Series A and B redeemable convertible preferred stock             434  
Acquisition-related expenses 3,970         3,970      
Tax impact of acquisition(1) 10,582         10,582      
Stock-based compensation 12,252     8,669     43,443     22,875  
Tax impact of stock-based compensation(2) 160     (80 )   (95 )   (218 )
Amortization of acquired intangible assets(3) 193     150     620     603  
Non-GAAP net loss $ (11,148 )   $ (10,875 )   $ (40,493 )   $ (50,261 )
               
Net loss per share attributable to common stockholders, basic and diluted $ (0.39 )   $ (0.21 )   $ (1.03 )   $ (1.38 )
Accretion of Series A and B redeemable convertible preferred stock             0.01  
Acquisition-related expenses 0.04         0.04      
Tax impact of acquisition(1) 0.11         0.11      
Stock-based compensation 0.13     0.09     0.45     0.42  
Tax impact of stock-based compensation(2)              
Amortization of acquired intangible assets(3)         0.01     0.01  
Non-GAAP net loss per share, basic and diluted $ (0.11 )   $ (0.12 )   $ (0.42 )   $ (0.94 )
               
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 97,738     92,187     96,014     53,669  
Pro forma adjustment to reflect the assumed conversion of our convertible redeemable preferred stock as of the beginning of the period             31,107  
Weighted-average shares used to compute pro forma non-GAAP net loss per share, basic and diluted 97,738     92,187     96,014     84,776  
               
Pro forma non-GAAP net loss per share, basic and diluted $ (0.11 )   $ (0.12 )   $ (0.42 )   $ (0.59 )

________________
(1)  The tax impact of the acquisition includes $6.3 million of current tax expense and $4.3 million of deferred tax expense related to the transfer of acquired intellectual property.
(2)  The tax impact of stock-based compensation is based on the tax treatment for applicable tax jurisdictions.
(3)  The tax impact of amortization of acquired intangible assets is not material.

Non-GAAP Gross Profit and Non-GAAP Gross Margin Three Months Ended
December 31,
  Year Ended
 December 31,
(dollars in thousands) 2019   2018   2019   2018
Gross profit $ 78,620     $ 62,822     $ 293,768     $ 224,193  
Stock-based compensation 729     824     2,817     1,707  
Amortization of acquired intangible assets 193     150     620     603  
Non-GAAP gross profit $ 79,542     $ 63,796     $ 297,205     $ 226,503  
Gross margin 81 %   84 %   83 %   84 %
Non-GAAP gross margin 82 %   85 %   84 %   85 %
Non-GAAP Sales and Marketing Expense Three Months Ended
December 31,
  Year Ended
 December 31,
(dollars in thousands) 2019   2018   2019   2018
Sales and marketing expense $ 62,632     $ 47,380     $ 228,035     $ 173,344  
Less: Stock-based compensation 4,930     2,927     16,032     6,911  
Non-GAAP sales and marketing expense $ 57,702     $ 44,453     $ 212,003     $ 166,433  
Non-GAAP sales and marketing expense % of revenue 59 %   59 %   60 %   62 %
Non-GAAP Research and Development Expense Three Months Ended
December 31,
  Year Ended
 December 31,
(dollars in thousands) 2019   2018   2019   2018
Research and development expense $ 22,668     $ 21,169     $ 87,064     $ 76,698  
Less: Stock-based compensation 2,316     2,210     8,911     5,804  
Non-GAAP research and development expense $ 20,352     $ 18,959     $ 78,153     $ 70,894  
Non-GAAP research and development expense % of revenue 21 %   25 %   22 %   27 %
Non-GAAP General and Administrative Expense Three Months Ended
December 31,
  Year Ended
 December 31,
(dollars in thousands) 2019   2018   2019   2018
General and administrative expense $ 20,873     $ 13,864     $ 69,468     $ 46,732  
Less: Stock-based compensation 4,277     2,708     15,683     8,453  
Less: Acquisition-related expenses 3,970         3,970      
Non-GAAP general and administrative expense $ 12,626     $ 11,156     $ 49,815     $ 38,279  
Non-GAAP general and administrative expense % of revenue 13 %   15 %   14 %   14 %
Forecasted Non-GAAP Loss from Operations Three Months Ended
March 31, 2020
  Year Ended
 December 31, 2020
(in millions) Low   High   Low   High
Forecasted loss from operations $ (31.6 )   $ (30.6 )   $ (100.3 )   $ (95.3 )
Forecasted stock-based compensation 13.0     13.0     60.0     60.0  
Forecasted amortization of acquired intangible assets 0.6     0.6     2.3     2.3  
Forecasted non-GAAP loss from operations $ (18.0 )   $ (17.0 )   $ (38.0 )   $ (33.0 )
Forecasted Non-GAAP Net Loss and Non-GAAP Net Loss Per Share Three Months Ended
March 31, 2020
  Year Ended
 December 31, 2020
(in millions, except per share data) Low   High   Low   High
Forecasted net loss $ (32.9 )   $ (31.9 )   $ (104.3 )   $ (99.3 )
Forecasted stock-based compensation 13.0     13.0     60.0     60.0  
Tax impact of stock-based compensation 0.3     0.3     1.0     1.0  
Forecasted amortization of acquired intangible assets 0.6     0.6     2.3     2.3  
Forecasted non-GAAP net loss $ (19.0 )   $ (18.0 )   $ (41.0 )   $ (36.0 )
               
Forecasted net loss per share, basic and diluted $ (0.33 )   $ (0.32 )   $ (1.04 )   $ (0.99 )
Forecasted stock-based compensation 0.13     0.13     0.60     0.60  
Tax impact of stock-based compensation         0.01     0.01  
Forecasted amortization of acquired intangible assets 0.01     0.01     0.02     0.02  
Forecasted Non-GAAP net loss per share, basic and diluted $ (0.19 )   $ (0.18 )   $ (0.41 )   $ (0.36 )
               
Forecasted weighted-average shares used to compute net loss per share, basic and diluted 98.7   98.7   100.1   100.1

 

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