ANAPLAN, INC.

PLAN
Delayed Quote. Delayed  - 08/05 04:10:00 pm
45.38USD +1.09%

Anaplan : Announces First Quarter Fiscal Year 2021 Financial Results

05/26/2020 | 07:31am

  • First Quarter Subscription Revenue up 44% Year-Over-Year
  • Remaining Performance Obligation of $647 million, up 37% Year-Over-Year
  • Dollar-Based Net Expansion of 117%

Anaplan, Inc. (NYSE:PLAN), a pioneer in Connected Planning, today announced financial results for its first quarter ended April 30, 2020.

“While our first quarter results reflect the impact of COVID-19, we believe the need for a digital connected planning platform will become even stronger as it is clear that traditional planning no longer works,” said Frank Calderoni, chief executive officer at Anaplan. “We are confident in the demand for our Connected Planning solution as companies look to drive digital change in order to respond and adapt to the rapid pace of change. Our unique calculation engine, committed partner ecosystem, extensive customer base and strong financial position sets us up to drive long-term success.”

First Quarter Fiscal 2021 Financial Results

  • Total revenue was $103.8 million, an increase of 37% year-over-year. Subscription revenue was $93.8 million, an increase of 44% year-over-year.
  • GAAP operating loss was $38.8 million or 37.3% of total revenue, compared to $37.1 million in the first quarter of fiscal 2020 or 48.9% of total revenue. Non-GAAP operating loss was $13.4 million, or 12.9% of total revenue, compared to $20.1 million in the first quarter of fiscal 2020, or 26.5% of total revenue.
  • GAAP loss per share was $0.29, compared to $0.30 in the first quarter of fiscal 2020. Non-GAAP loss per share was $0.10, compared to $0.16 in the first quarter of fiscal 2020.
  • Cash and Cash Equivalents were $303.1 million as of April 30, 2020.

Financial Outlook

The company is providing the following guidance for its second quarter fiscal 2021:

  • Total revenue is expected to be between $103 and $104 million.
  • Non-GAAP operating margin is expected to be between negative 15.0% and 16.0%.
  • As a baseline for second quarter, billings are expected to be in the range of $98 million to $100 million.

With the uncertainty surrounding the ongoing impact of COVID-19 we are withdrawing our previously issued full-year fiscal 2021 guidance provided February 27, 2020.

The guidance provided above are forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures used in this press release, definitions of our operating metrics and a reconciliation of GAAP and non-GAAP financial measures is contained in the tables below. A reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, costs and expenses, including the impact of stock-based compensation, which is dependent on factors such as future stock price and volume of equity awards granted in the future, that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant.

Recent Highlights

  • Anaplan launched Anaplan Helps to provide free access to its platform for 90 days and high-impact applications to support qualified organizations in need accelerate their COVID-19 response.
  • Anaplan recognized as a SIIA CODiE 2020 winner for best financial management solution.
  • Anaplan announced its premiere customer event, Connected Planning Xperience, will go digital in 2020.
  • Anaplan appointed Allan Leinwand to its board of directors.

Webcast and Conference Call Information

Anaplan will host a conference call for investors on May 26, 2020 at 5:30 a.m. Pacific Time and 8:30 a.m. Eastern Time to share the company’s financial results and business highlights. Investors are invited to listen to a live webcast of the conference call by visiting https://investors.anaplan.com. A replay of the webcast will be available for one year. The call can also be accessed live via phone by dialing (877) 823-8690 or, for international callers, (647) 689-4061 with conference ID 1099937. An audio replay will be available shortly after the call and can be accessed by dialing (800) 585-8367 or, for international callers (416) 621-4642. The passcode for the replay is 1099937.

About Anaplan

Anaplan, Inc. (NYSE: PLAN) is pioneering the category of Connected Planning. Our platform, powered by our proprietary Hyperblock® technology, purpose-built for Connected Planning, enables dynamic, collaborative, and intelligent planning. Large global enterprises use our solution to connect people, data, and plans to enable real-time planning and decision-making in rapidly changing business environments to give our customers a competitive advantage. Based in San Francisco, we have over 20 offices globally, 175 partners, and more than 1,400 customers worldwide. To learn more, visit anaplan.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, including all statements other than statements of historical fact contained in this press release and includes, without limitation, statements about the company’s expectations regarding the impact of the COVID-19 pandemic and resulting global economic uncertainty, the quotations from management, statements regarding market demand, market opportunity, competitive position including of the company’s solutions compared to the offerings of competitors, use of the company’s solutions and potential results of such use, financial outlook and earnings guidance, statements regarding growth and momentum, statements about the company’s plans, strategies and prospects, and statements about events and trends including events and trends that we believe may affect our financial condition, results of operations, short- and long-term business operations and objectives, and financial needs. These statements identify prospective information and may include words such as “expects,” “intends,” “continue,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “should,” “may,” “will,” or the negative version of these words, variations of these words and comparable terminology. These forward-looking statements are based on information available to the company as of the date of this press release and are based on management’s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be beyond the company’s control and may pose a risk to the company’s operating and financial condition. Such risks and uncertainties include, but are not limited to: the COVID-19 pandemic, and any resulting global economic downturn, could significantly disrupt our business operations, prolong our sales cycle and result in a material adverse effect on our financial condition, operating results and cash flows; we have a limited history of operating at our current scale and under our current strategy, which makes it difficult to predict our future operating results, and we may not achieve our expected operating results in the future; we have a history of net losses, we anticipate increasing our operating expenses in the future, and we do not expect to be profitable for the foreseeable future; our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business; economic uncertainty and volatility in the broader financial markets may result in our customers and prospective customers reducing their spending, scaling back their digital transformation efforts, delaying purchasing decisions or deferring implementation projects, any of which may adversely impact our business, financial condition and cash flows; if we are unable to achieve and sustain a level of liquidity sufficient to support our operations and fulfill our obligations, our business, operating results and financial position could be adversely affected; if we are unable to attract new customers, both domestically and internationally, the growth of our revenue will be adversely affected and our business may be harmed; our business depends substantially on our customers renewing their subscriptions and expanding their use of our platform and if we fail to achieve renewals and expansions or our customers renew or expand their subscriptions on less favorable terms, our business operations and financial condition may be materially and adversely affected; the markets in which we participate are intensely competitive, and if we do not compete effectively, our business and operating results could be adversely affected; our success depends in part on the continued performance of our strategic partners, and uncertain economic conditions including those caused by the COVID-19 pandemic may disrupt the operations and performance of our partners and ultimately adversely impact our financial results; if we experience a security incident, our platform may be perceived as not being secure, our reputation may be harmed, customers may reduce the use of or stop using our platform, we may incur significant liabilities, and our business could be materially adversely affected; real or perceived errors, failures, bugs, service outages, or disruptions in our platform could adversely affect our reputation and harm our business; our success depends upon training our customers to effectively utilize our platform and consistently providing high-quality support services and if our ability to provide effective training or support is limited by the COVID-19 pandemic and ensuing remote work restrictions, then our results of operations and financial condition may be adversely affected; we could incur substantial costs in protecting or defending our intellectual property rights, and any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand; our global operations and sales to customers outside the United States or with international operations subject us to risks inherent in international operations that can harm our business, results of operations, and financial condition; and the uncertainty in and volatility of the broader stock market generally or the stock price of our common stock specifically may result in stockholders not being able to resell their shares at or above the price at which they purchased shares. Furthermore, the additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may amplify many of these risks. Information concerning risks, uncertainties and other factors that could cause results to differ materially from the expectations described in this press release is contained in the company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K filed with the SEC on March 30, 2020, and other documents the company may file with or furnish to the SEC from time to time such as quarterly reports on Form 10-Q and current reports on Form 8-K. These forward-looking statements should not be relied upon as representing the company’s views as of any subsequent date and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made. The information contained in, or that can be accessed through, Anaplan’s website and social media channels are not part of this press release.

 
Preliminary Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended April 30,

(In thousands, except per share amounts)

2020

2019

Revenue:
Subscription revenue

$

93,824

 

$

65,085

 

Professional services revenue

 

10,020

 

 

10,745

 

Total revenue

 

103,844

 

 

75,830

 

Cost of revenue:
Cost of subscription revenue (1)

 

15,185

 

 

11,091

 

Cost of professional services revenue (1)

 

9,555

 

 

10,486

 

Total cost of revenue

 

24,740

 

 

21,577

 

Gross profit

 

79,104

 

 

54,253

 

Operating expenses:
Research and development (1)

 

23,762

 

 

15,059

 

Sales and marketing (1)

 

71,674

 

 

56,290

 

General and administrative (1)

 

22,428

 

 

20,013

 

Total operating expenses

 

117,864

 

 

91,362

 

Loss from operations

 

(38,760

)

 

(37,109

)

Interest income, net

 

511

 

 

1,251

 

Other income (expense), net

 

(331

)

 

(246

)

Loss before income taxes

 

(38,580

)

 

(36,104

)

Provision for income taxes

 

(1,022

)

 

(1,087

)

Net loss

$

(39,602

)

$

(37,191

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.29

)

$

(0.30

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

136,362

 

 

122,992

 

 
 
(1) Includes stock-based compensation expense as follows:
Cost of subscription revenue

$

708

 

$

491

 

Cost of professional services revenue

 

508

 

 

492

 

Research and development

 

3,646

 

 

1,836

 

Sales and marketing

 

10,031

 

 

6,617

 

General and administrative

 

7,600

 

 

6,866

 

Total stock-based compensation expense

$

22,493

 

$

16,302

 

 
 
Preliminary Consolidated Balance Sheets
(In thousands)
(Unaudited)

As of

April 30,

 

January 31,

2020

 

2020

ASSETS
Current assets:
Cash and cash equivalents

$

303,098

 

$

309,894

 

Accounts receivable, net

 

92,971

 

 

109,217

 

Deferred commissions, current portion

 

26,488

 

 

25,990

 

Prepaid expenses and other current assets

 

16,195

 

 

17,814

 

Total current assets

 

438,752

 

 

462,915

 

Property and equipment, net

 

49,994

 

 

48,639

 

Deferred commissions, net of current portion

 

58,825

 

 

57,947

 

Goodwill

 

32,379

 

 

32,379

 

Operating lease right-of-use asset

 

35,520

 

 

37,875

 

Other noncurrent assets

 

11,745

 

 

10,052

 

TOTAL ASSETS

$

627,215

 

$

649,807

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

10,646

 

$

5,331

 

Accrued expenses

 

70,629

 

 

79,024

 

Deferred revenue, current portion

 

205,958

 

 

216,059

 

Operating lease liabilities, current portion

 

6,548

 

 

7,278

 

Total current liabilities

 

293,781

 

 

307,692

 

Deferred revenue, net of current portion

 

6,280

 

 

4,149

 

Operating lease liabilities, net of current portion

 

32,422

 

 

34,017

 

Other noncurrent liabilities

 

14,151

 

 

12,268

 

TOTAL LIABILITIES

 

346,634

 

 

358,126

 

 
Stockholders' equity:
Common stock

 

13

 

 

13

 

Accumulated other comprehensive loss

 

(2,575

)

 

(4,326

)

Additional paid-in capital

 

815,756

 

 

788,

 

Accumulated deficit

 

(532,613

)

 

(492,453

)

TOTAL STOCKHOLDERS' EQUITY

 

280,581

 

 

291,681

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

627,215

 

$

649,807

 

 
 
Preliminary Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Three Months Ended April 30,

2020

 

2019

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss

$

(39,602

)

$

(37,191

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

 

6,070

 

 

4,355

 

Amortization of deferred commissions

 

7,718

 

 

4,139

 

Stock-based compensation

 

22,493

 

 

16,302

 

Reduction of operating lease right-of-use assets and accretion of operating lease liabilities

 

2,852

 

 

2,442

 

Other non-cash items

 

1,106

 

 

(496

)

Changes in operating assets and liabilities:
Accounts receivable

 

12,848

 

 

774

 

Prepaid expenses and other current assets

 

1,508

 

 

518

 

Other noncurrent assets

 

114

 

 

(513

)

Deferred commissions

 

(10,056

)

 

(8,191

)

Accounts payable and accrued expenses

 

(2,546

)

 

6,470

 

Deferred revenue

 

(3,159

)

 

12,061

 

Payments for operating lease liabilities

 

(2,835

)

 

(2,361

)

Other noncurrent liabilities

 

1,985

 

 

(209

)

Net cash used in operating activities

 

(1,504

)

 

(1,900

)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment

 

(1,583

)

 

(922

)

Capitalized internal-use software

 

(2,880

)

 

(2,161

)

Net cash used in investing activities

 

(4,463

)

 

(3,083

)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options

 

3,792

 

 

3,004

 

Proceeds from repayment of promissory notes

 

-

 

 

9,280

 

Principal payments on capital lease obligations

 

(1,728

)

 

(1,088

)

Net cash provided by financing activities

 

2,064

 

 

11,196

 

Effect of exchange rate changes on cash and cash equivalents

 

(743

)

 

(398

)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

(4,646

)

 

5,815

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH - Beginning of period

 

309,894

 

 

326,863

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH - End of period

$

305,248

 

$

332,678

 

 
 
 
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages and per share amounts)
(Unaudited)

Three Months Ended April 30,

(In thousands, except percentages and per share amounts)

2020

 

2019

 
Revenue

$

103,844

 

$

75,830

 

 
GAAP operating loss

$

(38,760

)

$

(37,109

)

Stock-based compensation

 

22,493

 

 

16,302

 

Employer payroll tax expense related to employee stock plans

 

1,485

 

 

682

 

Business combination and other related cost

 

1,019

 

 

-

 

Amortization of acquired intangibles

 

335

 

 

35

 

Non-GAAP operating loss

$

(13,428

)

$

(20,090

)

GAAP operating margin %

 

-37.3

%

 

-48.9

%

Stock-based compensation %

 

21.7

%

 

21.5

%

Employer payroll tax expense related to employee stock plans %

 

1.4

%

 

0.9

%

Business combination and other related cost %

 

1.0

%

 

0.0

%

Amortization of acquired intangibles %

 

0.3

%

 

0.0

%

Non-GAAP operating margin %

 

-12.9

%

 

-26.5

%

 
GAAP net loss

$

(39,602

)

$

(37,191

)

Stock-based compensation

 

22,493

 

 

16,302

 

Employer payroll tax expense related to employee stock plans

 

1,485

 

 

682

 

Business combination and other related cost

 

1,019

 

 

-

 

Amortization of acquired intangibles

 

335

 

 

35

 

Non-GAAP net loss

$

(14,270

)

$

(20,172

)

 
GAAP net loss per share, basic and diluted

$

(0.29

)

$

(0.30

)

Stock-based compensation

 

0.17

 

 

0.13

 

Employer payroll tax expense related to employee stock plans

 

0.01

 

 

0.01

 

Business combination and other related cost

 

0.01

 

 

-

 

Amortization of acquired intangibles

 

-

 

 

-

 

Non-GAAP net loss per share

$

(0.10

)

$

(0.16

)

 
Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

 

136,362

 

 

122,992

 

Shares used to compute Non-GAAP net loss per share

 

136,362

 

 

122,992

 

 
GAAP net cash used in operating activities

$

(1,504

)

$

(1,900

)

Purchase of property and equipment

 

(1,583

)

 

(922

)

Capitalized internal-use software

 

(2,880

)

 

(2,161

)

Non-GAAP free cash flow

$

(5,967

)

$

(4,983

)

 
 

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and free cash flow. The non-GAAP financial information is presented for supplemental informational purposes only, and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. The non-GAAP measures presented here may be different from similarly-titled non-GAAP measures used by other companies.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures, when viewed collectively with the GAAP measures, may be helpful to investors because they provide consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. The definitions of our non-GAAP measures may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may utilize metrics that are not similar to ours. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. Please see the reconciliation tables in this release for the reconciliation of GAAP and non-GAAP results.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.

Employer payroll tax expense related to employee stock plans. We exclude employer payroll tax expense related to employee stock plans, which is a cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of exercise or vesting, which may vary from period to period independent of the operating performance of our business.

Amortization of acquired intangible assets. We exclude amortization of acquired intangible assets, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of intangible assets are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

Business combinations and related cost. We exclude transaction, integration, and retention expenses that are directly related to business combinations from certain of our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information regarding operational performance.

Free cash flow. Our management reviews cash flows generated from operations after taking into consideration capital expenditures such as purchase of property and equipment and internal-use software as these expenditures are considered to be a necessary component of ongoing operations. We define non-GAAP free cash flow as net cash provided by (used in) operating activities, reduced by purchase of property and equipment and capitalization of internal-use software.

Operating Metrics

Annual recurring revenue (ARR) is calculated as subscription revenue already booked and in backlog that will be recorded over the next 12 months, assuming any contract expiring in those 12 months is renewed and continues on its existing terms and at its prevailing rate of utilization.

Dollar-based Net Expansion Rate is calculated as the ARR at the end of a period for the base set of customers from which we had ARR in the year prior to the calculation, divided by the ARR one year prior to the date of calculation for that same customer base.

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