- Revenue of $35.9 Million, increase of 48% from Q1 2013
- Gross Sending Volume of $1.6 Billion, increase of 49% from Q1 2013
- 1,130,367 Active Customers, increase of 34% from Q1 2013
SAN FRANCISCO, April 22, 2014 (GLOBE NEWSWIRE) -- Xoom Corporation (Nasdaq: XOOM ), a leading digital money transfer provider, today announced financial results for the first quarter of 2014:
- Revenue for the first quarter was $35.9 million, an increase of 48% from the first quarter of 2013.
- Gross profit for the first quarter was $26.4 million, an increase of 57% from the first quarter of 2013.
- GAAP net income for the first quarter was $0.4 million, or $0.01 per diluted share, compared to a net loss of $79,000, or $0.00 per diluted share, for the first quarter of 2013.
- Adjusted EBITDA for the first quarter was $3.5 million, compared to $1.6 million for the first quarter of 2013.
- Non-GAAP earnings per diluted share for the first quarter was $0.06, compared to $0.02 per diluted share for the first quarter of 2013.
- Cash, cash equivalents, disbursement prefunding and short-term investments were $243.5 million as of March 31, 2014, compared to $249.5 million as of December 31, 2013.
- As of March 31, 2014 and December 31, 2013, we had no outstanding balance under our line of credit.
"We had a solid first quarter with continued momentum from mobile channels and high quality additions to our payout network generating strong financial results," said John Kunze, president and chief executive officer, Xoom. "Risk management continues to be a critical differentiator for Xoom. With our industry best loss management, we are able to ensure a seamless consumer experience, while delivering our services at consistently faster speeds, on great margins."
Operating Metrics
- Gross sending volume for the quarter grew 49% to $1.6 billion from the first quarter of 2013.
- Transactions for the quarter grew 42% to 2,896,639 from the first quarter of 2013.
- Active customers for the quarter grew 34% to 1,130,367 from the first quarter of 2013.
- New customers for the quarter grew 7% to 117,095 from the first quarter of 2013.
Highlights and Strategic Announcements
During the quarter, Xoom expanded its payout network and service innovations.
- Xoom partnered with Metrobank and Philippine National Bank (PNB) to offer instant deposits to Metrobank and PNB bank accounts in the Philippines, which, in addition to Xoom's instant bank deposit service to BDO, provides Xoom customers the ability to instantly send money directly into their recipients' accounts at three of the top five banks in the Philippines.
- Xoom partnered with HDFC Bank Limited to offer instant deposits to Rupee-denominated HDFC Bank accounts in India. This breakthrough service allows Xoom customers to instantly deposit money into their recipients' HDFC Bank accounts in India 24 hours a day, seven days a week, 365 days a year, including bank holidays.
- Xoom partnered with Banco Popular Dominicano to offer deposit services to the bank's checking and savings accounts in usually less than 15 minutes to the Dominican Republic and cash pick up services at more than 200 locations across the island, expanding Xoom's total cash pickup network in the Dominican Republic to 576 locations.
Business Outlook
For Q2 2014, Xoom is targeting the following:
- Revenue to be between $38.0 million and $40.0 million.
- Adjusted EBITDA to be between $2.0 million and $4.0 million.
- GAAP diluted net income (loss) per share to be in the range of $(0.04) to $0.01.
- Non-GAAP diluted net income per share to be in the range of $0.02 to $0.06.
For Full Year 2014, Xoom is targeting the following:
- Revenue to be between $157.0 million and $162.0 million.
- Adjusted EBITDA to be between $12.0 million and $15.0 million.
- GAAP diluted net loss per share to be in the range of $0.09 to $0.02.
- Non-GAAP diluted net income per share to be in the range of $0.15 to $0.22.
Conference Call
Xoom plans to host a conference call today to review its first quarter 2014 results and to discuss its financial outlook for the second quarter and full year 2014. The conference call can be accessed by dialing the toll free number (877) 440-7574 or the international number (253) 237-1314. The call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed via the Web at ir.xoom.com. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 60 days.
About Xoom
Xoom is a leading digital money transfer provider in 31 countries, focused on helping consumers send money in a secure, fast and cost-effective way using their mobile phone, tablet or computer. During the 12 month period ended March 31, 2014, Xoom's more than 1.1 million active customers sent more than $6.1 billion to family and friends. The company is headquartered in San Francisco and can be found online at www.xoom.com .
Forward-Looking Statements
This press release and Xoom's scheduled conference call contain 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 relating to, among other things, expectations, plans, prospects and financial results for Xoom, including, but not limited to, its expectations regarding its expansion into new markets and services, market demand, future earnings, revenue and financial and operating metrics. These forward-looking statements are based upon the current expectations and beliefs of Xoom's management as of the date of this press release and conference call, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release and during the conference call are based on information available to Xoom as of the date thereof, and Xoom disclaims any obligation to update these forward-looking statements.
In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the evolving nature of the industry in which Xoom operates; its failure to attract new customers or retain existing customers; economic, political or regulatory factors beyond its control, in the U.S. or in countries to which its customers transfer money; fluctuations in foreign exchange rates; competitive pricing and marketing strategies by competitors; the adoption of competing technologies that supplant its services; the use of its services for illegal or improper purposes; the failure of partners to disburse funds according to Xoom's instructions; its ability to contract for third-party services on commercially reasonable terms; the maintenance of its payment network on terms consistent with those currently in place or newly adopted regulations in the U.S or in countries to which its customers transfer money; increases in transaction processing fees; declines in customer confidence in its business or in money transfer providers generally; its ability to protect its intellectual property; the adoption of mobile phones and devices to access information on the Internet and use of its services; potential breaches of its security systems; and other risks and uncertainties.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to Xoom's Annual Report on Form 10-K for the year ended December 31, 2013 and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system ("EDGAR") at www.sec.gov or Xoom's website at www.xoom.com .
Non-GAAP Financial Measures
Xoom's stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share. Adjusted EBITDA excludes provision for income taxes, interest expense, interest income, amortization of acquired intangible asset, depreciation and other amortization expense, and expenses related to stock-based compensation. Non-GAAP net income excludes expenses related to stock-based compensation and amortization of acquired intangible asset. Adjusted EBITDA and Non-GAAP net income 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
Director of Investor Relations
IR@xoom.com
Robin Carr
Director of Public Relations
PR@xoom.com
| XOOM CORPORATION AND SUBSIDIARIES | ||||
| Condensed Consolidated Balance Sheets | ||||
| (In thousands, except share and per share data) | ||||
| March 31, | December 31, | |||
| 2014 | 2013 | |||
| (derived from | ||||
| audited financial | ||||
| (unaudited) | statements) | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 98,010 | $ 110,979 | ||
| Disbursement prefunding | 38,722 | 33,799 | ||
| Short-term investments | 106,767 | 104,678 | ||
| Customer funds receivable | 29,389 | 16,381 | ||
| Prepaid expenses and other current assets | 5,066 | 4,237 | ||
| Total current assets | 277,954 | 270,074 | ||
| Non-current assets: | ||||
| Property, equipment and software, net | 5,254 | 4,855 | ||
| Goodwill | 9,032 | -- | ||
| Intangibles, net | 5,746 | 250 | ||
| Restricted cash | 10,968 | 7,816 | ||
| Other assets | 966 | 1,084 | ||
| Total assets | $ 309,920 | $ 284,079 | ||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | $ 9,220 | $ 8,345 | ||
| Customer liabilities | 25,628 | 10,791 | ||
| Total current liabilities | 34,848 | 19,136 | ||
| Non-current liabilities: | ||||
| Other non-current liabilities | 2,309 | 99 | ||
| Total liabilities | 37,157 | 19,235 | ||
| Commitments and Contingencies | ||||
| Stockholders' equity: | ||||
| Convertible preferred stock, $0.0001 par value, 25,000,000 shares authorized; issued and outstanding 0 shares; aggregate liquidation preference $0 at March 31, 2014 and December 31, 2013 | -- | -- | ||
| Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 37,983,793 and 37,583,945 shares at March 31, 2014 and December 31, 2013, respectively | 4 | 4 | ||
| Additional paid-in capital | 329,450 | 321,878 | ||
| Accumulated other comprehensive loss | (5) | -- | ||
| Accumulated deficit | (56,686) | (57,038) | ||
| Total stockholders' equity | 272,763 | 264,844 | ||
| Total liabilities and stockholders' equity | $ 309,920 | $ 284,079 | ||
| XOOM CORPORATION AND SUBSIDIARIES | ||||
| Condensed Consolidated Statements of Operations | ||||
| (In thousands, except per share data) | ||||
| Three Months Ended | ||||
| March 31, | ||||
| 2014 | 2013 | |||
| (unaudited) | ||||
| Revenue | $ 35,938 | $ 24,315 | ||
| Cost of revenue | 9,578 | 7,519 | ||
| Gross profit | 26,360 | 16,796 | ||
| Marketing | 8,782 | 5,692 | ||
| Technology and development | 7,850 | 4,834 | ||
| Customer service and operations | 3,974 | 3,017 | ||
| General and administrative | 5,158 | 2,923 | ||
| Total operating expense | 25,764 | 16,466 | ||
| Income from operations | 596 | 330 | ||
| Other income (expense): | ||||
| Interest expense | (328) | (447) | ||
| Interest income | 76 | 36 | ||
| Other income | 20 | 4 | ||
| Income (loss) before provision for income taxes | 364 | (77) | ||
| Provision for income taxes | 12 | 2 | ||
| Net income (loss) | $ 352 | $ (79) | ||
| Net income (loss) per share: | ||||
| Basic | $ 0.01 | $ (0.00) | ||
| Diluted | $ 0.01 | $ (0.00) | ||
| Weighted-average shares used to compute net income (loss) per share: | ||||
| Basic | 37,799 | 19,041 | ||
| Diluted | 41,710 | 19,041 | ||
| XOOM CORPORATION AND SUBSIDIARIES | ||||
| Key Metrics | ||||
| Three Months Ended | ||||
| March 31, | ||||
| 2014 | 2013 | |||
| (unaudited) | ||||
| Other Financial and Operational Data: | ||||
| Gross Sending Volume | $ 1,576,690,682 | $ 1,055,847,000 | ||
| Transactions | 2,896,639 | 2,039,000 | ||
| Active Customers | 1,130,367 | 841,819 | ||
| New Customers | 117,095 | 109,631 | ||
| Cost Per Acquisition of a New Customer | $ 56 | $ 40 | ||
| Adjusted EBITDA (in thousands) | $ 3,523 | $ 1,574 | ||
| XOOM CORPORATION AND SUBSIDIARIES | ||||
| Reconciliation of GAAP to Non-GAAP Operating Results | ||||
| Three Months Ended | ||||
| March 31, | ||||
| 2014 | 2013 | |||
| (In thousands, except per share data) | ||||
| (unaudited) | ||||
| Non-GAAP net income (loss) per share: | ||||
| GAAP net income (loss) | $ 352 | $ (79) | ||
| Add back: stock-based compensation | 1,924 | 778 | ||
| Add back: amortization of acquired intangible asset | 204 | -- | ||
| Non-GAAP net income | $ 2,480 | $ 699 | ||
| Non-GAAP diluted net income per share | $ 0.06 | $ 0.02 | ||
| Non-GAAP diluted shares | 41,710 | 34,459 | ||
| Reconciliation of Adjusted EBITDA: | ||||
| Net income (loss) | $ 352 | $ (79) | ||
| Provision for income taxes | 12 | 2 | ||
| Interest expense | 328 | 447 | ||
| Interest income | (76) | (36) | ||
| Amortization of acquired intangible asset | 204 | -- | ||
| Depreciation and other amortization expense | 779 | 462 | ||
| Stock-based compensation | 1,924 | 778 | ||
| Adjusted EBITDA | $ 3,523 | $ 1,574 | ||
| XOOM CORPORATION AND SUBSIDIARIES | ||||
| Forward-Looking Guidance | ||||
| Three Months Ending | Twelve Months Ending | |||
| June 30, 2014 | December 31, 2014 | |||
| From | To | From | To | |
| (In thousands, except per share data) | ||||
| Net income (loss) per share: | ||||
| GAAP net income (loss) | $ (1,673) | $ 325 | $ (3,615) | $ (618) |
| Add back: stock-based compensation | 2,253 | 2,253 | 9,283 | 9,283 |
| Add back: amortization of acquired intangible asset | 204 | 204 | 814 | 814 |
| Non-GAAP net income | $ 784 | $ 2,782 | $ 6,482 | $ 9,479 |
| GAAP diluted net income (loss) per share | $ (0.04) | $ 0.01 | $ (0.09) | $ (0.02) |
| Non-GAAP diluted net income per share | $ 0.02 | $ 0.06 | $ 0.15 | $ 0.22 |
| GAAP diluted shares | 38,294 | 43,128 | 38,625 | 38,625 |
| Non-GAAP diluted shares | 43,128 | 43,128 | 43,029 | 43,029 |
| Adjusted EBITDA: | ||||
| GAAP net income (loss) | $ (1,673) | $ 325 | $ (3,615) | $ (618) |
| Provision for income taxes | -- | -- | 12 | 12 |
| Interest expense | 350 | 351 | 1,379 | 1,381 |
| Interest income | (101) | (100) | (377) | (376) |
| Amortization of acquired intangible asset | 204 | 204 | 814 | 814 |
| Depreciation and other amortization expense | 967 | 967 | 4,504 | 4,504 |
| Stock-based compensation | 2,253 | 2,253 | 9,283 | 9,283 |
| Adjusted EBITDA | $ 2,000 | $ 4,000 | $ 12,000 | $ 15,000 |
