Xoom Reports Second Quarter 2015 Results
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Second Quarter Revenue of $46.3 Million, increase of 16% from Q2 2014 |
|
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Second Quarter Gross Sending Volume of $1.7 Billion, decrease of 4% from Q2 2014 |
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- |
1,381,175 Active Customers, increase of 16% from Q2 2014 |
SAN FRANCISCO, Calif., July 29, 2015 – Xoom Corporation (NASDAQ: XOOM), a leading digital money transfer provider, today announced financial results for the second quarter of 2015.
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· |
Revenue for the second quarter was $46.3 million, an increase of 16% from the second quarter of 2014. |
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· |
Gross profit for the second quarter was $33.0 million, an increase of 23% from the second quarter of 2014. |
|
· |
GAAP net loss for the second quarter was $2.3 million, or a loss of $0.06 per diluted share, compared to net income of $1.4 million, or $0.03 per diluted share, for the second quarter of 2014. |
|
· |
Adjusted EBITDA for the second quarter was $3.9 million, compared to $5.1 million for the second quarter of 2014. |
|
· |
Non-GAAP net income per diluted share for the second quarter was $0.06, compared to net income of $0.09 per diluted share for the second quarter of 2014. |
|
· |
Cash, cash equivalents, disbursement prefunding and short-term investments were $229.9 million as of June 30, 2015, compared to $250.2 million as of December 31, 2014. |
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There was no outstanding amount due under the line of credit as of June 30, 2015. Outstanding amount due under the line of credit was $28.0 million as of December 31, 2014. |
Operating Metrics
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· |
Gross sending volume for the quarter was $1.7 billion, a decrease of 4% from the second quarter of 2014. |
|
· |
Transactions for the quarter were 3,880,264, representing growth of 22% from the second quarter of 2014. |
|
· |
Active customers for the quarter were 1,381,175, representing growth of 16% from the second quarter of 2014. |
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· |
Gross additional customers for the quarter were 157,803, an increase of 2% from the second quarter of 2014. |
Highlights and Strategic Announcements
During the quarter, Xoom launched the following new initiatives to enhance its customer experience and expand its reach in new markets:
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Expansion into Sri Lanka through our partnership with Sampath Bank, one of the largest banks in Sri Lanka, which enables Xoom customers to instantly deposit funds into Sampath Bank accounts in Sri Lanka and to deposit funds to other banks in Sri Lanka, including Hatton National Bank, Bank of Ceylon, Peoples Bank, Commercial Bank and more. |
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Expansion into Austria, Belgium, Greece and Portugal, with bank deposit services to various banks in these countries. |
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Introduction of Xoom Mobile Reload, a service which allows customers to instantly send airtime credit online from the U.S. to prepaid mobile phones in 22 countries, including India, Mexico and the Philippines. |
On July 1, 2015, Xoom entered into a definitive agreement under which PayPal, Inc. will acquire Xoom for $25 per share in cash (the “Merger”). The Merger was unanimously approved by the Boards of Directors of both companies, as well as the Board of Directors of eBay Inc., PayPal, Inc.'s parent company on the date of the agreement.
Business Outlook
In connection with the pending Merger, beginning in Q2 2015, Xoom will no longer provide details regarding its business outlook for future periods. In light of the pending Merger, and the results reported above, the Company has determined to withdraw its prior guidance for the full year 2015. The Company will not host a conference call to review its second quarter 2015 financial results.
About Xoom
Xoom is a leading digital money transfer provider that enables consumers to send money, pay bills and send prepaid mobile phone reloads for family and friends around the world in a secure, fast and cost-effective way, using their mobile phone, tablet or computer. During the 12 months ended June 30, 2015, Xoom’s more than 1.4 million active customers sent approximately $6.9 billion with Xoom. The company is headquartered in San Francisco and can be found online at www.xoom.com.
Xoom’s stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share. Adjusted EBITDA excludes (benefit) provision for income taxes, interest expense, interest income, amortization of acquired intangible asset, depreciation and other amortization expense, expenses related to stock-based compensation and Merger-related costs. Depreciation and other amortization expense includes impairment charges and loss on disposal of long-lived assets. Costs incurred in connection with the Merger are unique costs incurred out of the normal course of business and have therefore been excluded from adjusted EBITDA and non-GAAP net income to reflect normalized business performance. Non-GAAP net income and non-GAAP net income per diluted share exclude expenses related to stock-based compensation, amortization of acquired intangible asset and Merger-related costs. Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. Xoom believes these adjustments provide useful comparative information to investors.
Xoom considers these non-GAAP financial measures to be important because they provide useful measures of its operating performance and are used by its management for that purpose. In addition, investors often use measures such as these to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding Xoom’s operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.
(Xoom-f)
Contacts:
Sharrifah Al-Salem, CFA, 415-660-1256
Director of Investor Relations
IR@xoom.com
XOOM CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and per share data)
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June 30, |
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December 31, |
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2015 |
|
2014 |
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|
|
|
|
(unaudited) |
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(derived from audited financial statements) |
|
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Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
81,613 |
|
$ |
67,216 |
|
Disbursement prefunding |
|
|
42,893 |
|
|
71,167 |
|
Short-term investments |
|
|
105,382 |
|
|
111,777 |
|
Customer funds receivable |
|
|
25,470 |
|
|
18,590 |
|
Prepaid expenses and other current assets |
|
|
7,358 |
|
|
5,417 |
|
Total current assets |
|
|
262,716 |
|
|
274,167 |
|
Non-current assets: |
|
|
|
|
|
|
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Property, equipment and software, net |
|
|
15,406 |
|
|
15,670 |
|
Goodwill |
|
|
9,032 |
|
|
9,032 |
|
Intangibles, net |
|
|
4,710 |
|
|
5,129 |
|
Restricted cash |
|
|
11,404 |
|
|
10,971 |
|
Other assets |
|
|
751 |
|
|
755 |
|
Total assets |
|
$ |
304,019 |
|
$ |
315,724 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
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Accounts payable and accrued expenses |
|
$ |
17,438 |
|
$ |
14,533 |
|
Customer liabilities |
|
|
19,815 |
|
|
11,540 |
|
Line of credit |
|
|
— |
|
|
28,000 |
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Total current liabilities |
|
|
37,253 |
|
|
54,073 |
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Non-current liabilities: |
|
|
|
|
|
|
|
Other non-current liabilities |
|
|
6,289 |
|
|
5,885 |
|
Total liabilities |
|
|
43,542 |
|
|
59,958 |
|
Commitments and Contingencies |
|
|
|
|
|
|
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Stockholders’ equity: |
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|
|
|
|
|
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Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 39,304,758 and 38,592,808 shares at June 30, 2015 and December 31, 2014, respectively |
|
|
4 |
|
|
4 |
|
Additional paid-in capital |
|
|
347,451 |
|
|
339,169 |
|
Accumulated other comprehensive loss |
|
|
(27) |
|
|
(55) |
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Accumulated deficit |
|
|
(86,951) |
|
|
(83,352) |
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Total stockholders’ equity |
|
|
260,477 |
|
|
255,766 |
|
Total liabilities and stockholders’ equity |
|
$ |
304,019 |
|
$ |
315,724 |
XOOM CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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||||||||
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|
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2015 |
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2014 |
|
2015 |
|
2014 |
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||||
|
|
|
(unaudited) |
|
(unaudited) |
|||||||||
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Revenue |
|
$ |
46,327 |
|
$ |
39,844 |
|
$ |
90,745 |
|
$ |
75,782 |
|
|
Cost of revenue |
|
|
13,349 |
|
|
12,977 |
|
|
25,382 |
|
|
22,555 |
|
|
Gross profit |
|
|
32,978 |
|
|
26,867 |
|
|
65,363 |
|
|
53,227 |
|
|
Marketing |
|
|
10,511 |
|
|
7,356 |
|
|
20,449 |
|
|
16,138 |
|
|
Technology and development |
|
|
12,138 |
|
|
8,801 |
|
|
23,220 |
|
|
16,651 |
|
|
Customer service and operations |
|
|
4,798 |
|
|
4,371 |
|
|
9,407 |
|
|
8,345 |
|
|
General and administrative |
|
|
7,544 |
|
|
4,817 |
|
|
15,130 |
|
|
9,975 |
|
|
Total operating expense |
|
|
34,991 |
|
|
25,345 |
|
|
68,206 |
|
|
51,109 |
|
|
Income (loss) from operations |
|
|
(2,013) |
|
|
1,522 |
|
|
(2,843) |
|
|
2,118 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Interest expense |
|
|
(325) |
|
|
(344) |
|
|
(694) |
|
|
(672) |
|
|
Interest income |
|
|
72 |
|
|
69 |
|
|
148 |
|
|
145 |
|
|
Other income (expense) |
|
|
(18) |
|
|
170 |
|
|
(130) |
|
|
190 |
|
|
Income (loss) before income taxes |
|
|
(2,284) |
|
|
1,417 |
|
|
(3,519) |
|
|
1,781 |
|
|
Provision for income taxes |
|
|
52 |
|
|
19 |
|
|
80 |
|
|
31 |
|
|
Net income (loss) |
|
$ |
(2,336) |
|
$ |
1,398 |
|
$ |
(3,599) |
|
$ |
1,750 |
|
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic |
|
$ |
(0.06) |
|
$ |
0.04 |
|
$ |
(0.09) |
|
$ |
0.05 |
|
|
Diluted |
|
$ |
(0.06) |
|
$ |
0.03 |
|
$ |
(0.09) |
|
$ |
0.04 |
|
|
Weighted-average shares used to compute net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic |
|
|
39,183 |
|
|
38,102 |
|
|
38,994 |
|
|
37,952 |
|
|
Diluted |
|
|
39,183 |
|
|
41,622 |
|
|
38,994 |
|
|
41,667 |
|
XOOM CORPORATION AND SUBSIDIARIES
Key Metrics
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
||||
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(unaudited) |
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(unaudited) |
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Other Financial and Operational Data: |
|
|
|
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|
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|
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|
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Gross Sending Volume (in thousands) |
|
$ |
1,727,534 |
|
$ |
1,805,342 |
|
$ |
3,398,981 |
|
$ |
3,382,033 |
|
Transactions |
|
|
3,880,264 |
|
|
3,192,199 |
|
|
7,432,541 |
|
|
6,088,838 |
|
Active Customers |
|
|
1,381,175 |
|
|
1,195,425 |
|
|
1,381,175 |
|
|
1,195,425 |
|
Gross Additional Customers |
|
|
157,803 |
|
|
153,961 |
|
|
313,922 |
|
|
290,370 |
|
Cost Per Acquisition of a Gross Additional Customer |
|
$ |
53 |
|
$ |
44 |
|
$ |
52 |
|
$ |
46 |
|
Adjusted EBITDA (in thousands) |
|
$ |
3,903 |
|
$ |
5,068 |
|
$ |
7,641 |
|
$ |
8,591 |
XOOM CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Operating Results
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
|
June 30, |
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June 30, |
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|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
||||
|
|
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(In thousands, except per share data) |
||||||||||
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|
(unaudited) |
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Non-GAAP net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
(2,336) |
|
$ |
1,398 |
|
$ |
(3,599) |
|
$ |
1,750 |
|
Add back: stock-based compensation |
|
|
3,250 |
|
|
2,333 |
|
|
6,485 |
|
|
4,257 |
|
Add back: amortization of acquired intangible asset |
|
|
203 |
|
|
203 |
|
|
407 |
|
|
407 |
|
Add back: Merger-related cost |
|
|
1,315 |
|
|
— |
|
|
1,315 |
|
|
— |
|
Non-GAAP net income |
|
$ |
2,432 |
|
$ |
3,934 |
|
$ |
4,608 |
|
$ |
6,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per diluted share |
|
$ |
0.06 |
|
$ |
0.09 |
|
$ |
0.11 |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares |
|
|
41,715 |
|
|
41,622 |
|
|
41,488 |
|
|
41,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(2,336) |
|
$ |
1,398 |
|
$ |
(3,599) |
|
$ |
1,750 |
|
Provision for income taxes |
|
|
52 |
|
|
19 |
|
|
80 |
|
|
31 |
|
Interest expense |
|
|
325 |
|
|
344 |
|
|
694 |
|
|
672 |
|
Interest income |
|
|
(72) |
|
|
(69) |
|
|
(148) |
|
|
(145) |
|
Amortization of acquired intangible asset |
|
|
203 |
|
|
203 |
|
|
407 |
|
|
407 |
|
Depreciation and other amortization expense |
|
|
1,166 |
|
|
840 |
|
|
2,407 |
|
|
1,619 |
|
Stock-based compensation |
|
|
3,250 |
|
|
2,333 |
|
|
6,485 |
|
|
4,257 |
|
Merger-related cost |
|
|
1,315 |
|
|
— |
|
|
1,315 |
|
|
— |
|
Adjusted EBITDA |
|
$ |
3,903 |
|
$ |
5,068 |
|
$ |
7,641 |
|
$ |
8,591 |