[February 06, 2014] |
|
Medidata Reports Record Full Year and Fourth Quarter 2013 Results
NEW YORK --(Business Wire)--
Medidata (NASDAQ:MDSO), the leading global provider of cloud-based
solutions for clinical research in life sciences, today announced its
financial results for the fourth quarter and full year 2013, and
provided detailed financial guidance for the full year 2014.
"Record revenues of $277 million in 2013 led to Medidata's best year of
growth since we went public in 2009. Subscription revenue growth of 33%
was driven by accelerating customer adoption and market share gains,"
said Tarek Sherif, Medidata's chairman and chief executive officer. "Our
cloud platform is built on best-in-class technology supported by a deep
understanding of clinical development, while our benchmarking and
analytic capabilities are powered by the largest, unique data repository
in our industry. This has made Medidata a key technology partner to the
life sciences industry as we focus on optimizing value throughout the
clinical development process. Given our healthy backlog, momentum and a
great pipeline of opportunities, we are well positioned for another year
of exciting growth."
Fourth Quarter 2013 Results
-
Total revenue for the fourth quarter of 2013 was $74.6 million, an
increase of $16.0 million, or 27%, compared with $58.6 million in
2012. Subscription revenue was $63.0 million, an increase of 32%,
compared with the same period last year.
-
GAAP operating (loss)* for the quarter was ($1.5) million, compared
with income of $9.3 million in the fourth quarter of 2012. Non-GAAP
operating income** for the fourth quarter of 2013 increased to $17.3
million, up 24%, compared with $14.0 million a year ago.
-
For the fourth quarter and full year of 2013, GAAP results* include
$9.3 million of additional stock-based compensation expense relating
to long-term performance-based restricted stock units.
-
GAAP net income* for the fourth quarter of 2013 was $0.6 million, or
$0.01 per diluted share, compared with $6.6 million, or $0.13 per
diluted share, in the fourth quarter of 2012. Adjusted non-GAAP net
income** for the fourth quarter of 2013 was $12.5 million, or $0.23
per diluted share, up 37%, compared with $9.1 million, or $0.17 per
diluted share, in the fourth quarter of 2012. See the non-GAAP
reconciliation included in this release for full details of the
non-GAAP adjustments.
-
Cash flow from operations was $20.1 million in the fourth quarter, up
$23.6 million compared with negative cash flow of ($3.5) million a
year ago.
Full Year 2013 Results
-
Total revenue for the full year 2013 was $276.8 million, an increase
of $58.5 million, or 27%, compared with $218.3 million in 2012.
Subscription revenue was $227.9 million, an increase of 33% over 2012.
-
GAAP operating income* for the full year 2013 was $23.9 million,
compared with $27.9 million in 2012. Non-GAAP operating income** for
the full year increased to $67.2 million, up 43%, compared with $47.1
million in 2012.
-
GAAP net income* for the full year 2013 was $16.7 million, or $0.31
per diluted share, compared with $18.0 million, or $0.35 per diluted
share, in 2012. Adjusted non-GAAP net income** for the full year 2013
was $41.8 million, or $0.77 per diluted share, up 58%, compared with
$26.4 million, or $0.52 per diluted share, in 2012. See the non-GAAP
reconciliation included in this release for full details of the
non-GAAP adjustments.
-
Total cash, cash equivalents and marketable securities were $436.3
million at the end of 2013, an increase of $313.7 million, or 256%,
compared with $122.6 million at the end of 2012, primarily due to net
proceeds of $279.4 million from the convertible senior notes issued
during 2013 and record cash flows.
-
Cash flow from operations was a record $69.6 million for the full year
2013, up 427% year over year.
Additional Highlights
-
Subscription backlog grew to a record $228 million, up 23% year
over year. Subscription backlog does not include intra-year
renewals.
-
Medidata's revenue retention rate for the year was over 98%. The
renewal rate for all its large enterprise customers over the last
several years was 100%.
-
49% of customers had committed to multiple products at the end of
2013, up from 38% at the end of the previous year.
-
Medidata's customer base grew to 397 in the fourth quarter of 2013, up
13% from the end of 2012.
-
Non-Rave revenues increased 114% year-over-year, driven by adoption of
Medidata's innovative solutions for medical coding, randomization and
trial supply management, safety data capture, and data-driven metrics
and benchmarking.
"Medidata delivered another strong year of accelerated revenue growth
and margin expansion, while continuing to invest in corporate
initiatives designed to drive sustainable growth," said Cory Douglas,
chief financial officer. "Our fourth quarter and full year 2013 results
demonstrate the cash flow potential, leverage and scalable nature of our
vertically focused business model. Our revenue guidance for 2014
represents the highest growth rate we have provided at the start of a
new year since our IPO."
Financial Outlook
For the full year 2014, the company now expects:
-
Revenues between $340.0 and $345.0 million.
-
Professional services revenues in the low-to-mid $50.0 million range.
-
Non-GAAP operating income between $80.0 and $83.0 million. Based on
current estimates, this would equate to GAAP operating income between
$33.5 and $36.5 million.
-
Adjusted non-GAAP net income, which includes the tax affected
adjustments primarily from stock-based compensation, non-cash interest
expense associated with convertible senior notes, and amortization at
a 40% effective tax rate, between $41.0 and $44.0 million. Based on
current estimates, this would equate to GAAP net income between $12.0
and $15.0 million.
-
While changes in the stock price could change the fully diluted share
count, the company is assuming 55.7 million fully diluted shares.
Conference Call
The company plans to host its investor conference call today at 8:00
a.m. Eastern. The investor conference call will be available via live
webcast on the "Investor" section of Medidata's web site at http://investor.mdsol.com.
To participate by telephone, domestic participants may dial 877-303-2528
and international participants may dial 847-829-0023. Those interested
in participating in the conference call should dial in at least 10
minutes prior to the call to register. Participants can also join the
call via a simultaneous live audio webcast, which will be made available
on the "Investor" section of Medidata's web site at http://investor.mdsol.com.
A replay of the conference call can be accessed until Thursday, February
20, 2014, by dialing 800-585-8367 domestically or 404-537-3406
internationally, with the passcode 45357210. An archive of the call will
also be hosted on the "Investor" section of Medidata's web site, http://investor.mdsol.com,
for a limited period of time.
About Medidata
Medidata
is the leading global provider of cloud-based solutions for clinical
research in life sciences, transforming clinical development through its
advanced applications and intelligent data analytics. The Medidata
Clinical Cloud™ brings new levels of productivity and quality to the
clinical testing of promising medical treatments, from study design and
planning through execution, management and reporting. We are committed
to advancing the competitive and scientific goals of global customers,
which include over 90% of the top 25 global pharmaceutical companies;
innovative biotech, diagnostic and device firms; leading academic
medical centers; and contract research organizations.
Cautionary Statement
Certain statements made in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve significant risks and uncertainties
about Medidata Solutions, Inc. ("Medidata"), including but not limited
to statements about Medidata's forecast of financial performance,
products and services, business model, strategy and growth
opportunities, and competitive position. Such statements are subject to
risks and uncertainties that could cause actual performance or results
to differ materially from those expressed in these statements. In
particular, the risks and uncertainties include, among other things,
risks associated with possible fluctuations in our financial and
operating results; errors, interruptions or delays in our service or our
Web hosting; the financial impact of any future acquisitions; our
ability to continue to release, and gain customer acceptance of, new and
improved versions of our products; changes in our sales and
implementation cycles; competition; our ability to retain and expand our
customer base or increase new business from those customers; our ability
to hire, retain and motivate our employees and manage our growth;
regulatory developments; litigation; and general developments in the
economy. For additional disclosure regarding these and other risks faced
by the company, see disclosures contained in Medidata's public filings
with the Securities and Exchange Commission including, the "Risk
Factors" section of Medidata's Annual Report on Form 10-K for the year
ended December 31, 2012. You should consider these factors in evaluating
the forward-looking statements included in this press release and not
place undue reliance on such statements. The forward-looking statements
are made as of the date hereof, and Medidata undertakes no obligation to
update such statements as a result of new information.
*GAAP results include $9.3 million of stock-based compensation expense
recognized during the fourth quarter of 2013 for the full year impact
relating to long-term performance-based restricted stock units (units).
These units contain performance targets measured on Medidata's three
year compound annual revenue growth rate and total stockholder return.
The recognition of expense for these units was based upon management's
assessment of the probability for achieving the predetermined
performance targets and an estimate of the number of performance shares
that will ultimately become earned on December 31, 2015. The $9.3
million of stock-based compensation expense represents approximately
one-third of the estimated current value of these awards. The remaining
expense will be recognized ratably over 2014 and 2015.
**Non-GAAP Financial Information
Medidata provides non-GAAP operating income, net income and net
income per share applicable to common stockholders data as additional
information for its operating results. These measures are not in
accordance with, or an alternative for, generally accepted accounting
principles and may be different from non-GAAP measures used by other
companies. Non-GAAP operating income excludes the impact of
depreciation, amortization of intangible assets associated with
acquisitions, stock-based compensation expense, and an adjustment to the
fair value of contingent consideration. Non-GAAP net income excludes the
impact of amortization of intangible assets associated with
acquisitions, stock-based compensation expense, an adjustment to the
fair value of contingent consideration, and non-cash interest expense on
convertible senior notes. Adjusted non-GAAP net income excludes the
impact of tax-affected amortization of intangible assets associated with
acquisitions, stock-based compensation expense, an adjustment to the
fair value of contingent consideration, and non-cash interest expense on
convertible senior notes. Management uses these non-GAAP measures to
evaluate its financial results, develop budgets, manage expenditures,
and as an important factor in determining variable compensation. In
addition, investors frequently have requested information from
management regarding depreciation, amortization and other non-cash
charges, such as share-based compensation, and management believes,
based on discussions with investors, that these non-GAAP measures
enhance investors' ability to assess Medidata's historical and projected
future financial performance. While management believes these non-GAAP
financial measures provide useful supplemental information to investors,
there are limitations associated with the use of non-GAAP financial
measures. One limitation of non-GAAP operating income is that it
excludes depreciation and amortization, which represents the periodic
costs of certain capitalized tangible and intangible assets used in
generating revenues in our business. Medidata compensates for these
limitations by using these non-GAAP financial measures as supplements to
GAAP financial measures and by reviewing the reconciliations of the
non-GAAP financial measures to their most comparable GAAP financial
measures. Investors are encouraged to review the reconciliations of
these non-GAAP financial measures to the comparable GAAP results, which
are attached to this press release.
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Revenues
|
|
|
(unaudited)
|
|
|
|
|
Subscription (1)
|
|
|
$
|
62,977
|
|
|
$
|
47,737
|
|
|
|
$
|
227,921
|
|
|
$
|
171,647
|
|
|
Professional services
|
|
|
|
11,598
|
|
|
|
10,893
|
|
|
|
|
48,928
|
|
|
|
46,700
|
|
|
Total revenues
|
|
|
|
74,575
|
|
|
|
58,630
|
|
|
|
|
276,849
|
|
|
|
218,347
|
|
|
Cost of revenues (2)(3)
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
|
9,735
|
|
|
|
8,501
|
|
|
|
|
37,053
|
|
|
|
32,600
|
|
|
Professional services
|
|
|
|
8,863
|
|
|
|
7,872
|
|
|
|
|
32,856
|
|
|
|
30,062
|
|
|
Total cost of revenues
|
|
|
|
18,598
|
|
|
|
16,373
|
|
|
|
|
69,909
|
|
|
|
62,662
|
|
|
Gross profit
|
|
|
|
55,977
|
|
|
|
42,257
|
|
|
|
|
206,940
|
|
|
|
155,685
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (2)
|
|
|
|
14,062
|
|
|
|
10,454
|
|
|
|
|
51,202
|
|
|
|
42,276
|
|
|
Sales and marketing (2)(3)
|
|
|
|
20,150
|
|
|
|
12,946
|
|
|
|
|
66,337
|
|
|
|
47,739
|
|
|
General and administrative (2)
|
|
|
|
23,281
|
|
|
|
9,607
|
|
|
|
|
65,513
|
|
|
|
37,777
|
|
|
Total operating costs and expenses
|
|
|
|
57,493
|
|
|
|
33,007
|
|
|
|
|
183,052
|
|
|
|
127,792
|
|
|
Operating (loss) income
|
|
|
|
(1,516
|
)
|
|
|
9,250
|
|
|
|
|
23,888
|
|
|
|
27,893
|
|
|
Interest and other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(3,747
|
)
|
|
|
(18
|
)
|
|
|
|
(5,925
|
)
|
|
|
(138
|
)
|
|
Interest income
|
|
|
|
311
|
|
|
|
84
|
|
|
|
|
555
|
|
|
|
280
|
|
|
Other (expense) income, net
|
|
|
|
(54
|
)
|
|
|
51
|
|
|
|
|
(136
|
)
|
|
|
34
|
|
|
Total interest and other (expense) income, net
|
|
|
|
(3,490
|
)
|
|
|
117
|
|
|
|
|
(5,506
|
)
|
|
|
176
|
|
|
(Loss) income before income taxes
|
|
|
|
(5,006
|
)
|
|
|
9,367
|
|
|
|
|
18,382
|
|
|
|
28,069
|
|
|
Provision for income taxes
|
|
|
|
(5,588
|
)
|
|
|
2,774
|
|
|
|
|
1,721
|
|
|
|
10,049
|
|
|
Net income
|
|
|
$
|
582
|
|
|
$
|
6,593
|
|
|
|
$
|
16,661
|
|
|
$
|
18,020
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic (4)
|
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
|
$
|
0.33
|
|
|
$
|
0.37
|
|
|
Diluted (4)
|
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
|
$
|
0.31
|
|
|
$
|
0.35
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic (4)
|
|
|
|
51,685
|
|
|
|
49,960
|
|
|
|
|
51,060
|
|
|
|
49,092
|
|
|
Diluted (4)
|
|
|
|
54,825
|
|
|
|
51,896
|
|
|
|
|
54,118
|
|
|
|
50,938
|
|
|
(1) Subscription revenues, formerly known as application services
revenues, represent subscription fees from customers accessing our
enterprise cloud-based solutions, as well as other support
services.
|
|
(2) Stock-based compensation expense included in cost of revenues
and operating costs and expenses is as follows:
|
|
Cost of revenues
|
|
|
$
|
1,159
|
|
|
$
|
459
|
|
|
|
$
|
3,149
|
|
|
$
|
1,751
|
|
|
Research and development
|
|
|
|
858
|
|
|
|
262
|
|
|
|
|
2,397
|
|
|
|
1,049
|
|
|
Sales and marketing
|
|
|
|
4,318
|
|
|
|
743
|
|
|
|
|
8,859
|
|
|
|
2,871
|
|
|
General and administrative
|
|
|
|
10,363
|
|
|
|
1,287
|
|
|
|
|
21,738
|
|
|
|
5,243
|
|
|
Total stock-based compensation (5)
|
|
|
$
|
16,698
|
|
|
$
|
2,751
|
|
|
|
$
|
36,143
|
|
|
$
|
10,914
|
|
|
(3) Amortization expense of intangible assets included in costs of
revenues and operating costs and expenses is as follows:
|
|
Cost of revenues
|
|
|
$
|
105
|
|
|
$
|
321
|
|
|
|
$
|
589
|
|
|
$
|
1,276
|
|
|
Sales and marketing
|
|
|
|
36
|
|
|
|
129
|
|
|
|
|
215
|
|
|
|
516
|
|
|
Total amortization of intangible assets
|
|
|
$
|
141
|
|
|
$
|
450
|
|
|
|
$
|
804
|
|
|
$
|
1,792
|
|
|
(4) Prior period results have been adjusted to reflect the
two-for-one stock split which was effected in the form of a stock
dividend in December 2013.
|
|
(5) The three and twelve months ended December 31, 2013 include
$9.3 million of expense associated with long-term performance
based restricted stock units with a performance condition related
to compound annual revenue growth and a market condition related
to total stockholder return. For further information, refer to
Reconciliation of GAAP Operating Income and GAAP Net Income to
non-GAAP Operating Income, non-GAAP Net Income, and Adjusted
non-GAAP Net Income.
|
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
Reconciliation of GAAP Operating Income and GAAP Net Income to
Non-GAAP Operating Income, Non-GAAP Net Income, and Adjusted
Non-GAAP Net Income (Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Operating (loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating (loss) income
|
|
|
$
|
(1,516
|
)
|
|
$
|
9,250
|
|
|
|
$
|
23,888
|
|
|
$
|
27,893
|
|
|
GAAP operating margins
|
|
|
|
(2.0
|
)%
|
|
|
15.8
|
%
|
|
|
|
8.6
|
%
|
|
|
12.8
|
%
|
|
Stock-based compensation (1)
|
|
|
|
16,698
|
|
|
|
2,751
|
|
|
|
|
36,143
|
|
|
|
10,914
|
|
|
Depreciation and amortization
|
|
|
|
2,048
|
|
|
|
1,937
|
|
|
|
|
6,936
|
|
|
|
7,934
|
|
|
Contingent consideration adjustment (2)
|
|
|
|
59
|
|
|
|
42
|
|
|
|
|
239
|
|
|
|
319
|
|
|
Non-GAAP operating income
|
|
|
$
|
17,289
|
|
|
$
|
13,980
|
|
|
|
$
|
67,206
|
|
|
$
|
47,060
|
|
|
Non-GAAP operating margins
|
|
|
|
23.2
|
%
|
|
|
23.8
|
%
|
|
|
|
24.3
|
%
|
|
|
21.6
|
%
|
|
Net income:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
582
|
|
|
$
|
6,593
|
|
|
|
$
|
16,661
|
|
|
$
|
18,020
|
|
|
Stock-based compensation (1)
|
|
|
|
16,698
|
|
|
|
2,751
|
|
|
|
|
36,143
|
|
|
|
10,914
|
|
|
Amortization
|
|
|
|
141
|
|
|
|
450
|
|
|
|
|
804
|
|
|
|
1,792
|
|
|
Contingent consideration adjustment (2)
|
|
|
|
59
|
|
|
|
42
|
|
|
|
|
239
|
|
|
|
319
|
|
|
Non-cash interest expense on convertible senior notes (3)
|
|
|
|
3,019
|
|
|
|
-
|
|
|
|
|
4,715
|
|
|
|
-
|
|
|
Non-GAAP net income
|
|
|
|
20,499
|
|
|
|
9,836
|
|
|
|
|
58,562
|
|
|
|
31,045
|
|
|
Tax impact on add-back items (4)
|
|
|
|
(7,966
|
)
|
|
|
(776
|
)
|
|
|
|
(16,760
|
)
|
|
|
(4,689
|
)
|
|
Adjusted non-GAAP net income
|
|
|
$
|
12,533
|
|
|
$
|
9,060
|
|
|
|
$
|
41,802
|
|
|
$
|
26,356
|
|
|
GAAP basic earnings per share (5)
|
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
|
$
|
0.33
|
|
|
$
|
0.37
|
|
|
GAAP diluted earnings per share (5)
|
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
|
$
|
0.31
|
|
|
$
|
0.35
|
|
|
Non-GAAP basic earnings per share (5)
|
|
|
$
|
0.40
|
|
|
$
|
0.20
|
|
|
|
$
|
1.15
|
|
|
$
|
0.63
|
|
|
Non-GAAP diluted earnings per share (5)
|
|
|
$
|
0.37
|
|
|
$
|
0.19
|
|
|
|
$
|
1.08
|
|
|
$
|
0.61
|
|
|
Adjusted non-GAAP basic earnings per share (5)
|
|
|
$
|
0.24
|
|
|
$
|
0.18
|
|
|
|
$
|
0.82
|
|
|
$
|
0.54
|
|
|
Adjusted non-GAAP diluted earnings per share (5)
|
|
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
|
$
|
0.77
|
|
|
$
|
0.52
|
|
|
|
|
(1) Includes expense associated with long-term performance based
restricted stock units with a performance condition related to
compound annual revenue growth and a market condition related to
total stockholder return, allocated to cost of revenues and
operating costs and expenses as follows:
|
|
Cost of revenues
|
|
|
$
|
379
|
|
|
$
|
-
|
|
|
|
$
|
379
|
|
|
$
|
-
|
|
|
Research and development
|
|
|
|
361
|
|
|
|
-
|
|
|
|
|
361
|
|
|
|
-
|
|
|
Sales and marketing
|
|
|
|
2,680
|
|
|
|
-
|
|
|
|
|
2,680
|
|
|
|
-
|
|
|
General and administrative
|
|
|
|
5,905
|
|
|
|
-
|
|
|
|
|
5,905
|
|
|
|
-
|
|
|
Total
|
|
|
$
|
9,325
|
|
|
$
|
-
|
|
|
|
$
|
9,325
|
|
|
$
|
-
|
|
|
|
|
(2) Amount represents the effect of changes in fair value of
contingent consideration liability.
|
|
|
|
(3) During the third quarter of 2013, we issued $287.5 million in
convertible senior notes (the "Notes") with a coupon interest rate
of 1.00%. Interest is paid semiannually on February 1 and August 1
over the five-year term of the notes. In connection with the Notes,
we are required to recognize non-cash interest expense, including
amortization of debt discount and issuance costs, in accordance with
accounting guidance for convertible debt that may be settled in
cash. We exclude this incremental non-cash interest expense for
purposes of calculating non-GAAP net income and adjusted non-GAAP
net income. We believe that excluding these expenses from our
non-GAAP measures is useful to investors because such incremental
non-cash interest expense does not generate a cash outflow for the
company and the debt issuance costs do not represent a cash outflow
for the company except in the period the Notes were issued;
therefore both are not indicative of our continuing operations or
meaningful when comparing current results to past results.
|
|
|
|
(4) Tax impact calculated using tax rates of 40% and 36% for 2013
and 2012, respectively.
|
|
|
|
(5) Prior period results have been adjusted to reflect the
two-for-one stock split which was effected in the form of a stock
dividend in December 2013.
|
|
|
|
The table above presents a reconciliation of GAAP to non-GAAP
operating (loss) income, net income, and net income per share
applicable to common stockholders for the three and twelve months
ended December 31, 2013 and 2012. Non-GAAP operating income excludes
the impact of depreciation, amortization of intangible assets
associated with acquisitions, stock-based compensation expense, and
adjustment to the fair value of contingent consideration. Non-GAAP
net income excludes the impact of amortization of intangible assets
associated with acquisitions, stock-based compensation expense,
adjustment to the fair value of contingent consideration, and
non-cash interest expense on convertible senior notes. Adjusted
non-GAAP net income excludes the impact of tax affected amortization
of intangible assets associated with acquisitions, stock-based
compensation expense, adjustment to the fair value of contingent
consideration, and non-cash interest expense on convertible senior
notes.
|
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
December 31, 2013
|
|
December 31, 2012
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
22,328
|
|
|
$
|
32,683
|
|
|
Marketable securities
|
|
|
|
218,892
|
|
|
|
89,871
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,055 and $747, respectively
|
|
|
|
45,534
|
|
|
|
42,359
|
|
|
Prepaid commission expense
|
|
|
|
3,615
|
|
|
|
2,281
|
|
|
Prepaid expenses and other current assets
|
|
|
|
13,511
|
|
|
|
8,042
|
|
|
Deferred income taxes
|
|
|
|
665
|
|
|
|
7,465
|
|
|
Total current assets
|
|
|
|
304,545
|
|
|
|
182,701
|
|
|
Restricted cash
|
|
|
|
5,118
|
|
|
|
388
|
|
|
Furniture, fixtures and equipment, net
|
|
|
|
41,229
|
|
|
|
10,474
|
|
|
Marketable securities, long-term
|
|
|
|
195,105
|
|
|
|
-
|
|
|
Goodwill
|
|
|
|
15,487
|
|
|
|
15,382
|
|
|
Intangible assets, net
|
|
|
|
904
|
|
|
|
1,708
|
|
|
Deferred income taxes, long-term
|
|
|
|
345
|
|
|
|
11,055
|
|
|
Other assets
|
|
|
|
10,620
|
|
|
|
2,923
|
|
|
Total assets
|
|
|
$
|
573,353
|
|
|
$
|
224,631
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
7,524
|
|
|
$
|
2,998
|
|
|
Accrued payroll and other compensation
|
|
|
|
27,773
|
|
|
|
14,140
|
|
|
Accrued expenses and other
|
|
|
|
12,265
|
|
|
|
6,729
|
|
|
Deferred revenue
|
|
|
|
52,628
|
|
|
|
50,348
|
|
|
Total current liabilities
|
|
|
|
100,190
|
|
|
|
74,215
|
|
|
Noncurrent liabilities:
|
|
|
|
|
|
|
Convertible 1.00% senior notes, net
|
|
|
|
229,705
|
|
|
|
-
|
|
|
Deferred revenue, less current portion
|
|
|
|
1,430
|
|
|
|
4,323
|
|
|
Deferred tax liabilities
|
|
|
|
5,651
|
|
|
|
624
|
|
|
Other long-term liabilities
|
|
|
|
10,564
|
|
|
|
3,378
|
|
|
Total noncurrent liabilities
|
|
|
|
247,350
|
|
|
|
8,325
|
|
|
Total liabilities
|
|
|
|
347,540
|
|
|
|
82,540
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock, par value $0.01 per share; 5,000 shares
authorized, none issued and outstanding
|
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, par value $0.01 per share; 100,000 shares
authorized, 55,018 and 52,810 shares issued; 53,634 and
52,078 shares outstanding, respectively (1)
|
|
|
|
550
|
|
|
|
528
|
|
|
Additional paid-in capital (1)
|
|
|
|
248,336
|
|
|
|
160,373
|
|
|
Treasury stock, 1,384 and 732 shares, respectively
|
|
|
|
(26,414
|
)
|
|
|
(5,626
|
)
|
|
Accumulated other comprehensive loss
|
|
|
|
(199
|
)
|
|
|
(63
|
)
|
|
Retained earnings (accumulated deficit)
|
|
|
|
3,540
|
|
|
|
(13,121
|
)
|
|
Total stockholders' equity
|
|
|
|
225,813
|
|
|
|
142,091
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
573,353
|
|
|
$
|
224,631
|
|
|
|
|
|
|
|
|
|
(1) Prior period results have been adjusted to reflect the
two-for-one stock split which was effected in the form of a stock
dividend in December 2013.
|
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Amounts in thousands)
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2013
|
|
2012
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
16,661
|
|
|
$
|
18,020
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
6,936
|
|
|
|
7,934
|
|
|
Stock-based compensation
|
|
|
|
36,143
|
|
|
|
10,914
|
|
|
Amortization of discounts or premiums on marketable securities
|
|
|
|
3,075
|
|
|
|
1,573
|
|
|
Deferred income taxes
|
|
|
|
(816
|
)
|
|
|
3,123
|
|
|
Amortization of debt issuance costs
|
|
|
|
577
|
|
|
|
60
|
|
|
Amortization of debt discount
|
|
|
|
4,182
|
|
|
|
-
|
|
|
Excess tax benefit associated with equity awards
|
|
|
|
(4,531
|
)
|
|
|
(3,655
|
)
|
|
Contingent consideration adjustment
|
|
|
|
239
|
|
|
|
319
|
|
|
Provision for doubtful accounts
|
|
|
|
657
|
|
|
|
165
|
|
|
Loss on fixed asset disposal
|
|
|
|
241
|
|
|
|
-
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
1,249
|
|
|
|
(16,056
|
)
|
|
Prepaid commission expense
|
|
|
|
(535
|
)
|
|
|
(1,426
|
)
|
|
Prepaid expenses and other current assets
|
|
|
|
2,099
|
|
|
|
(2,553
|
)
|
|
Other assets
|
|
|
|
(3,697
|
)
|
|
|
(1,372
|
)
|
|
Accounts payable
|
|
|
|
(457
|
)
|
|
|
(823
|
)
|
|
Accrued payroll and other compensation
|
|
|
|
3,614
|
|
|
|
4,286
|
|
|
Accrued expenses and other
|
|
|
|
7,728
|
|
|
|
2,226
|
|
|
Deferred revenue
|
|
|
|
(5,465
|
)
|
|
|
(11,471
|
)
|
|
Other long-term liabilities
|
|
|
|
1,697
|
|
|
|
1,981
|
|
|
Net cash provided by operating activities
|
|
|
|
69,597
|
|
|
|
13,245
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchase of furniture, fixtures and equipment
|
|
|
|
(30,505
|
)
|
|
|
(5,742
|
)
|
|
Purchase of available-for-sale marketable securities
|
|
|
|
(446,745
|
)
|
|
|
(109,320
|
)
|
|
Proceeds from sale of available-for-sale marketable securities
|
|
|
|
119,470
|
|
|
|
80,370
|
|
|
Net increase in restricted cash
|
|
|
|
(4,956
|
)
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
|
(362,736
|
)
|
|
|
(34,692
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
|
10,452
|
|
|
|
9,328
|
|
|
Excess tax benefit associated with equity awards
|
|
|
|
4,531
|
|
|
|
3,655
|
|
|
Payment of acquisition-related earn-out
|
|
|
|
(380
|
)
|
|
|
(251
|
)
|
|
Repayment of obligations under capital leases
|
|
|
|
(75
|
)
|
|
|
(268
|
)
|
|
Proceeds from issuance of convertible senior notes
|
|
|
|
287,500
|
|
|
|
-
|
|
|
Payment of costs associated with issuance of convertible senior notes
|
|
|
|
(8,144
|
)
|
|
|
-
|
|
|
Acquisition of treasury stock
|
|
|
|
(10,828
|
)
|
|
|
(3,439
|
)
|
|
Repayment of notes payable
|
|
|
|
(249
|
)
|
|
|
(113
|
)
|
|
Net cash provided by financing activities
|
|
|
|
282,807
|
|
|
|
8,912
|
|
|
Net decrease in cash and cash equivalents
|
|
|
|
(10,332
|
)
|
|
|
(12,535
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(23
|
)
|
|
|
4
|
|
|
Cash and cash equivalents - Beginning of period
|
|
|
|
32,683
|
|
|
|
45,214
|
|
|
Cash and cash equivalents - End of period
|
|
|
$
|
22,328
|
|
|
$
|
32,683
|
|
|
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