ServiceSource Reports Second Quarter 2019 Financial Results

Total Revenue of $52.4 million

GAAP Net Loss of $6.0 million; Non-GAAP Net Loss of $2.1 million

Adjusted EBITDA of negative $0.5 million

Revises full-year Revenue outlook and affirms break-even Adjusted EBITDA expectation

DENVER--()--ServiceSource (NASDAQ: SREV), the digital customer journey experience company, today announced financial results for the three months ended June 30, 2019.

“Our teams performed well this quarter in light of what we anticipated to be a challenging year-over-year revenue comparable. We drove ongoing operational discipline throughout the business, accreted cash during the quarter, and had positive Adjusted EBITDA on a year-to-date basis while pushing forward with our digital transformation strategy and investments,” said Gary B. Moore, Chairman and CEO of ServiceSource. “We are making adjustments for sales activity and results that are below expectations and lead to a reduced full-year revenue outlook, but we remain encouraged by signs that our Customer Journey Experience (CJX) solution suite is further differentiating us as a strategic partner and thought leader in the marketplace. We will continue to take decisive action to right-size the business for our current outlook while ensuring our resources and investments are aligned to the market opportunity to drive long-term value for our stockholders.”

Key Financial Results – Second Quarter 2019

  • GAAP revenue was $52.4 million, compared with $61.1 million reported for Q2 2018.
  • GAAP net loss was $6.0 million or $0.06 per diluted share, compared with GAAP net loss of $8.9 million or $0.10 per diluted share reported for Q2 2018.
  • Non-GAAP net loss was $2.1 million or $0.02 per diluted share, compared with non-GAAP net income of $0.8 million or $0.01 per diluted share reported for Q2 2018.
  • Adjusted EBITDA was negative $0.5 million, compared with positive Adjusted EBITDA of $3.2 million reported for Q2 2018.
  • Positive free cash flow of $1.4 million to end the quarter with $27.9 million of cash and cash equivalents and restricted cash and no 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 – Second Quarter 2019

  • Expanded revenue with four of the top 10 clients in the second quarter, with cumulative trailing 12 month revenue growth of 3.6% across the same top 10 clients.
  • Began ramping and scaling previously announced wins with a global leader in the cloud infrastructure-as-a-service market which has grown more than 80% during the trailing 12 month period.
  • Successfully renewed or extended more than 85% of the value that was up for renewal year-to-date.
  • Recruited and onboarded key senior-level hires, including a new VP of Learning & Development to lead the Company’s global talent development initiatives and a new VP of Global Sales Delivery Practices to lead the Company’s professional services and client engagement architecture teams.
  • Rationalized and exited more than 10% of the NALA real estate footprint to improve capacity utilization rates.
  • Realigned and unified the Company’s go-to-market activities and global account management teams under a single executive leader.

“We continued to demonstrate good operational progress and execution to our strategic plan during the second quarter. Our global account management investments and the efforts across our end-to-end engagement model drove favorable results in client satisfaction and retention, while our profitability and cash flow performance was above our expectations despite the topline pressure caused by last year’s churn events,” said Richard G. Walker, CFO of ServiceSource. “As we look to the balance of this year, in light of recent unanticipated challenges that have caused sales pipeline and bookings activity to fall short of our expectations, we now expect fiscal 2019 revenue to be down approximately 10-12% year-over-year versus our previous range of down 3-5% year-over-year. We have enacted changes in our go-to-market efforts that we believe will improve our sales execution and results. Though we are disappointed with the current revenue outlook, we are aggressively managing our cost structure and are reaffirming our expectation for approximately break-even Adjusted EBITDA for the year, while importantly maintaining the pace of transformational investments that we believe set the stage to deliver on our multi-year growth objectives and roadmap.”

Quarterly Conference Call

ServiceSource will discuss its second quarter 2019 results on August 8, 2019, 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: 8769613. 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. 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 expectations for financial and operational performance, whether our digital transformation strategy will produce anticipated benefits, and whether our improved execution and emerging capabilities will translate into desired results. 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 or the contraction in our revenue from one or more of our key clients, in each case resulting in churn, or our clients not expanding their relationships with us; the risk of problems implementing our technologies or that our technologies will not meet client expectations; that the market for our solution is underdeveloped and may not grow; errors in estimates as to the renewal rate improvements and/or service revenue we can generate for our clients; changes in market conditions that impact our ability to sell our solutions and/or generate service revenue on our clients’ behalf; the possibility that our estimates of service revenue, contract value, bookings, and other metrics may prove inaccurate; our ability to keep customer data and other confidential information secure; our ability to adapt our solution to changes in the market or new competition; problems encountered by our clients in their business that may cause them to cancel or reduce their business with us; our ability to achieve our expected benefits from international expansion; economic or other adverse events or conditions affecting the technology industry; our ability to protect our intellectual property rights; the risk of claims that our offerings infringe the intellectual property rights of others; 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) brings the world’s greatest brands closer to their customers through digitally-enabled solutions and data-driven insights that personalize and power the moments that matter. Backed by 20 years of experience, an industry-leading technology platform, a robust global footprint and a powerful suite of solutions that enhance every touchpoint along the Customer Journey Experience (CJX), we deliver impactful revenue growth for global market leaders. Operating out of eight countries with more than 3,000 sales delivery professionals speaking 45 languages, ServiceSource drives billions of dollars in client value annually. To learn more about how we help our clients more effectively find, convert, nurture, grow and retain their customers, visit www.servicesource.com.

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
June 30,

 

For the Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Net revenue

$

52,358

 

 

$

61,111

 

 

$

107,869

 

 

$

119,696

 

Cost of revenue(1)

38,349

 

 

42,463

 

 

77,825

 

 

84,187

 

Gross profit

14,009

 

 

18,648

 

 

30,044

 

 

35,509

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing(1)

7,486

 

 

9,252

 

 

15,435

 

 

18,490

 

Research and development(1)

1,274

 

 

1,780

 

 

2,537

 

 

3,296

 

General and administrative(1)

10,970

 

 

13,157

 

 

21,952

 

 

26,046

 

Restructuring and other related costs

148

 

 

156

 

 

1,206

 

 

209

 

Total operating expenses

19,878

 

 

24,345

 

 

41,130

 

 

48,041

 

Loss from operations

(5,869

)

 

(5,697

)

 

(11,086

)

 

(12,532

)

Interest and other expense, net

(58

)

 

(2,776

)

 

(548

)

 

(5,622

)

Impairment loss on investment securities

 

 

 

 

 

 

(1,958

)

Loss before income taxes

(5,927

)

 

(8,473

)

 

(11,634

)

 

(20,112

)

Provision for income tax expense

(108

)

 

(414

)

 

(120

)

 

(427

)

Net loss

$

(6,035

)

 

$

(8,887

)

 

$

(11,754

)

 

$

(20,539

)

Net loss per common share, basic and diluted

$

(0.06

)

 

$

(0.10

)

 

$

(0.13

)

 

$

(0.23

)

Weighted-average common shares outstanding, basic and diluted

93,712

 

 

91,323

 

 

93,315

 

 

90,843

 

 

 

 

 

 

 

 

 

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

 

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Cost of revenue

$

129

 

 

$

279

 

 

$

288

 

 

$

558

 

Sales and marketing

429

 

 

833

 

 

872

 

 

1,719

 

Research and development

18

 

 

58

 

 

12

 

 

122

 

General and administrative

660

 

 

2,257

 

 

1,634

 

 

4,139

 

Total stock-based compensation

$

1,236

 

 

$

3,427

 

 

$

2,806

 

 

$

6,538

 

ServiceSource International, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

June 30, 2019

 

December 31, 2018

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

25,652

 

 

$

26,535

 

Accounts receivable, net

42,933

 

 

54,284

 

Prepaid expenses and other

6,704

 

 

5,653

 

Total current assets

75,289

 

 

86,472

 

 

 

 

 

Property and equipment, net

37,029

 

 

36,593

 

Contract acquisition costs

2,041

 

 

2,660

 

Right-of-use assets

33,190

 

 

 

Goodwill

6,334

 

 

6,334

 

Other assets

4,801

 

 

4,521

 

Total assets

$

158,684

 

 

$

136,580

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,096

 

 

$

2,424

 

Accrued expenses

2,673

 

 

3,380

 

Accrued compensation and benefits

14,735

 

 

15,509

 

Operating lease liabilities

8,419

 

 

 

Other current liabilities

5,690

 

 

6,894

 

Total current liabilities

33,613

 

 

28,207

 

 

 

 

 

Operating lease liabilities, net of current portion

28,684

 

 

 

Other long-term liabilities

3,537

 

 

6,540

 

Total liabilities

65,834

 

 

34,747

 

 

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

 

 

Common stock

9

 

 

9

 

Treasury stock

(441

)

 

(441

)

Additional paid-in capital

372,201

 

 

369,246

 

Accumulated deficit

(279,137

)

 

(267,383

)

Accumulated other comprehensive income

218

 

 

402

 

Total stockholders’ equity

92,850

 

 

101,833

 

Total liabilities and stockholders’ equity

$

158,684

 

 

$

136,580

 

ServiceSource International, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

For the Six Months Ended
June 30,

 

2019

 

2018

Cash flows from operating activities:

 

 

 

Net loss

$

(11,754

)

 

$

(20,539

)

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

 

 

 

Depreciation and amortization

6,994

 

 

9,744

 

Amortization of debt discount and issuance costs

38

 

 

4,923

 

Amortization of contract acquisition costs

868

 

 

930

 

Amortization of premium on short-term investments

 

 

(1,197

)

Amortization of right-of-use assets

4,725

 

 

 

Stock-based compensation

2,806

 

 

6,538

 

Restructuring and other related costs

1,166

 

 

482

 

Impairment loss on investment securities

 

 

1,958

 

Other

 

 

56

 

Net changes in operating assets and liabilities

 

 

 

Accounts receivable, net

11,328

 

 

5,593

 

Prepaid expenses and other assets

(898

)

 

(434

)

Contract acquisition costs

(249

)

 

(878

)

Accounts payable

(263

)

 

(2,515

)

Accrued compensation and benefits

(1,934

)

 

(1,647

)

Operating lease liabilities

(4,767

)

 

 

Accrued expenses

(797

)

 

(1,811

)

Other liabilities

(546

)

 

1,199

 

Net cash provided by operating activities

6,717

 

 

2,402

 

Cash flows from investing activities:

 

 

 

Acquisition of property and equipment

(6,095

)

 

(7,268

)

Purchases of short-term investments

 

 

(480

)

Sales of short-term investments

 

 

133,920

 

Maturities of short-term investments

 

 

4,240

 

Net cash (used in) provided by investing activities

(6,095

)

 

130,412

 

Cash flows from financing activities:

 

 

 

Repayment on finance lease obligations

(421

)

 

(156

)

Proceeds from issuance of common stock

141

 

 

447

 

Payments related to minimum tax withholdings on restricted stock unit releases

(19

)

 

(417

)

Net cash used in financing activities

(299

)

 

(126

)

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

(156

)

 

243

 

Net change in cash and cash equivalents and restricted cash

167

 

 

132,931

 

Cash and cash equivalents and restricted cash, beginning of period

27,779

 

 

52,633

 

Cash and cash equivalents and restricted cash, end of period

$

27,946

 

 

$

185,564

 

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, net income (loss), 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 financial tables below under the heading, "GAAP to Non-GAAP Reconciliation."

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, amortization of internally-developed software and amortization of purchased intangible assets.

Non-GAAP net income (loss) consists of net income (loss) plus stock-based compensation, amortization of internally-developed software, amortization of purchased intangible assets, 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”), impairment loss on investment securities, 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 (benefit) expense, interest and other income (expense), net and depreciation and amortization. Adjusted EBITDA consists of EBITDA plus non-cash stock-based compensation, amortization of contract acquisition costs related to the initial adoption of ASC 606, restructuring and other related costs and impairment loss on investment securities. We are providing a forward expectation for Adjusted EBITDA only on a non-GAAP basis because ServiceSource is unable to predict with reasonable certainty the totality or ultimate outcome or occurrence of adjustments which historically have been applicable in determining Adjusted EBITDA for the forward-looking period, which can be dependent on future events that may not be reliably predicted.

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
June 30,

 

For the Six Months Ended
June 30,

 

 

 

2019

 

2018

 

2019

 

2018

Net revenue

 

$

52,358

 

 

$

61,111

 

 

$

107,869

 

 

$

119,696

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

14,009

 

 

$

18,648

 

 

$

30,044

 

 

$

35,509

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

129

 

 

279

 

 

288

 

 

558

 

 

Amortization of internally-developed software

(B)

999

 

 

2,830

 

 

1,893

 

 

5,509

 

 

Amortization of purchased intangible assets

(C)

 

 

 

 

 

 

55

 

Non-GAAP gross profit

 

$

15,137

 

 

$

21,757

 

 

$

32,225

 

 

$

41,631

 

 

 

 

 

 

 

 

 

 

 

Gross profit %

 

 

 

 

 

 

 

 

GAAP gross profit

 

26.8

%

 

30.5

%

 

27.9

%

 

29.7

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

0.2

%

 

0.5

%

 

0.3

%

 

0.5

%

 

Amortization of internally-developed software

(B)

1.9

%

 

4.6

%

 

1.7

%

 

4.6

%

 

Amortization of purchased intangible assets

(C)

%

 

%

 

%

 

%

Non-GAAP gross profit

 

28.9

%

 

35.6

%

 

29.9

%

 

34.8

%

Certain totals do not add due to rounding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

19,878

 

 

$

24,345

 

 

$

41,130

 

 

$

48,041

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

(1,107

)

 

(3,148

)

 

(2,518

)

 

(5,980

)

 

Amortization of internally-developed software

(B)

(408

)

 

(214

)

 

(773

)

 

(367

)

 

Amortization of purchased intangible assets

(C)

 

 

 

 

 

 

(30

)

 

Restructuring and other related costs

(D)

(148

)

 

(156

)

 

(1,206

)

 

(209

)

 

Amortization of contract acquisition costs - ASC 606 initial adoption

(E)

(255

)

 

(420

)

 

(512

)

 

(846

)

Non-GAAP operating expenses

 

$

17,960

 

 

$

20,407

 

 

$

36,121

 

 

$

40,609

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(6,035

)

 

$

(8,887

)

 

$

(11,754

)

 

$

(20,539

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

1,236

 

 

3,427

 

 

2,806

 

 

6,538

 

 

Amortization of internally-developed software

(B)

1,407

 

 

3,044

 

 

2,666

 

 

5,876

 

 

Amortization of purchased intangible assets

(C)

 

 

 

 

 

 

85

 

 

Restructuring and other related costs

(D)

148

 

 

156

 

 

1,206

 

 

209

 

 

Amortization of contract acquisition costs - ASC 606 initial adoption

(E)

255

 

 

420

 

 

512

 

 

846

 

 

Impairment loss on investment securities

(F)

 

 

 

 

 

 

1,958

 

 

Non-cash interest expense

(G)

20

 

 

2,502

 

 

38

 

 

4,932

 

 

Income tax effect on non-GAAP adjustments

(H)

866

 

 

129

 

 

1,288

 

 

339

 

Non-GAAP net (loss) income

 

$

(2,103

)

 

$

791

 

 

$

(3,238

)

 

$

244

 

 

 

 

 

 

 

 

 

 

Diluted net (loss) income per share

 

 

 

 

 

 

 

 

GAAP net loss per share

 

$

(0.06

)

 

$

(0.10

)

 

$

(0.13

)

 

$

(0.23

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Stock-based compensation

(A)

0.01

 

 

0.04

 

 

0.03

 

 

0.07

 

 

Amortization of internally-developed software

(B)

0.02

 

 

0.03

 

 

0.03

 

 

0.06

 

 

Amortization of purchased intangible assets

(C)

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

Restructuring and other related costs

(D)

0.00

 

 

0.00

 

 

0.01

 

 

0.00

 

 

Amortization of contract acquisition costs - ASC 606 initial adoption

(E)

0.00

 

 

0.00

 

 

0.01

 

 

0.01

 

 

Impairment loss on investment securities

(F)

0.00

 

 

0.00

 

 

0.00

 

 

0.02

 

 

Non-cash interest expense

(G)

0.00

 

 

0.03

 

 

0.00

 

 

0.05

 

 

Income tax effect on non-GAAP adjustments

(H)

0.01

 

 

0.00

 

 

0.01

 

 

0.00

 

Non-GAAP diluted net (loss) income per share

 

$

(0.02

)

 

$

0.01

 

 

$

(0.03

)

 

$

0.00

 

Certain totals do not add due to rounding

 

 

 

 

 

 

 

 

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

(I)

93,712

 

 

91,323

 

 

93,315

 

 

90,843

 

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) Amortization of purchased intangibles. Included in our GAAP presentation of gross margin and operating expenses is amortization of purchased intangible assets. We believe amortization of acquisition-related intangible assets, such as amortization of costs associated with an acquired company’s research and development efforts, trade names and customer relationships, are items arising from pre-acquisition activities and determined at the time of an acquisition. Although these intangible assets are continually evaluated for impairment, amortization of purchased intangibles is a static expense and not typically affected by operations during any particular period.

(D) 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.

(E) 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.

(F) Impairment loss on investment securities. We liquidated our investment securities during the first half of 2018 to have sufficient cash on hand to repay our $150.0 million convertible notes due August 1, 2018. Based on our decision to sell these investment securities, we determined an other-than-temporary impairment occurred as of March 31, 2018 and recorded an impairment loss, which represented the difference between the investment securities' amortized cost basis and fair value. This charge is not related to or indicative of ongoing operating performance.

(G) 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 and debt premiums or discounts. 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.

(H) 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, F and G noted above on our non-GAAP net income (loss).

(I) Shares used in calculating diluted net (loss) income 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 both the three and six months ended June 30, 2019 and 2018.

ServiceSource International, Inc.

Reconciliation of Net Loss to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

 

2019

 

2018

 

2019

 

2018

Net loss

 

$

(6,035

)

 

$

(8,887

)

 

$

(11,754

)

 

$

(20,539

)

Provision for income tax expense

 

108

 

 

414

 

 

120

 

 

427

 

Interest and other expense, net

 

58

 

 

2,776

 

 

548

 

 

5,622

 

Depreciation and amortization(1)

 

3,709

 

 

4,941

 

 

6,994

 

 

9,744

 

EBITDA

 

(2,160

)

 

(756

)

 

(4,092

)

 

(4,746

)

Stock-based compensation

(A)

1,236

 

 

3,427

 

 

2,806

 

 

6,538

 

Amortization of contract acquisition asset costs - ASC 606 initial adoption

(E)

255

 

 

420

 

 

512

 

 

846

 

Restructuring and other related costs

(D)

148

 

 

156

 

 

1,206

 

 

209

 

Impairment loss on investment securities

(F)

 

 

 

 

 

 

1,958

 

Adjusted EBITDA

 

$

(521

)

 

$

3,247

 

 

$

432

 

 

$

4,805

 

 

 

 

 

 

 

 

 

 

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

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

 

2019

 

2018

 

2019

 

2018

Purchased intangible asset amortization

 

$

 

 

$

 

 

$

 

 

$

85

 

Internally developed software amortization

 

1,407

 

 

3,044

 

 

2,666

 

 

5,876

 

Property and equipment depreciation

 

2,302

 

 

1,897

 

 

4,328

 

 

3,783

 

Depreciation and amortization

 

$

3,709

 

 

$

4,941

 

 

$

6,994

 

 

$

9,744

 

 

Contacts

Investor Relations Contact for ServiceSource:
Chad Lyne
ServiceSource International, Inc.
clyne@servicesource.com

Release Summary

ServiceSource, the digital customer journey experience company, today announced financial results for the three months ended June 30, 2019.

$Cashtags

Contacts

Investor Relations Contact for ServiceSource:
Chad Lyne
ServiceSource International, Inc.
clyne@servicesource.com