Qumu Stories Second Quarter 2022 Monetary Outcomes

MINNEAPOLIS–(BUSINESS WIRE)–Qumu Company (Nasdaq: QUMU), a number one supplier of cloud-based enterprise video expertise, right this moment reported monetary outcomes for the second quarter ended June 30, 2022.

Q2 2022 and Current Operational Highlights

• Chosen by Proprep for video administration and distribution of e-learning Content material to STEM college students worldwide
• Named a High Function-Constructed Streaming Platform by Wainhouse Analysis
• Gained fourth consecutive Stevie® Award in 2022 for Buyer Service

Q2 2022 Monetary Highlights

• Software program as a Service (SaaS) income elevated 10% to $2.Eight million, in comparison with $2.5 million in Q2 2021
• SaaS Annual Recurring Income (SaaS ARR) grew to $13.Three million, up 10% year-over-year
• SaaS income accounted for 54% of whole income, in comparison with 54% in Q1 2022 and 43% in Q2 2021
• Gross margin improved to 75.4%, in comparison with 71.5% for Q1 2022 and 73.6% for Q2 2021
• Working bills decreased 15% sequentially and 27% year-over-year
• Internet money utilized in working actions decreased to $3.7 million, an enchancment in comparison with $4.9 million in Q1 2022 and $6.1 million in Q2 2021
• Strong steadiness sheet with $6.Four million of money and money equivalents and no debt at quarter finish
• Firm reiterated its expectation that SaaS recurring income will comprise roughly 65% of its general recurring income combine by the tip of 2022, with focused progress to roughly 75% of recurring income combine by the tip of 2023

Q2 2022 Key Efficiency Indicators

• SaaS income accounted for 61% of recurring income, up from 60% in Q1 2022 and 49% in Q2 2021
• SaaS income accounted for 54% of whole income, in comparison with 54% in Q1 2022 and 43% in Q2 2021
• SaaS ARR elevated to $13.Three million from $13.Zero million in Q1 2022 and $12.2 million in Q2 2021
• SaaS buyer retention metrics:
  • Gross Retention Charge (GRR): 90% at finish of Q2 2022 in comparison with 81% at finish of Q2 2021
  • Internet Retention Charge (NRR): 103% at finish of Q2 2022 in comparison with 144% at finish of Q2 2021

Administration Commentary

“Our sturdy outcomes for the second quarter and first half of 2022 exhibit the continued execution of our technique to develop our cloud enterprise and scale our SaaS income base,” mentioned Qumu President and CEO Rose Bentley. “Highlighting our success in Q2 was a 10% enhance in each SaaS income and SaaS ARR, placing us nicely on observe to realize our SaaS progress targets for 2022 and 2023. Our cloud transformation initiatives and elevated SaaS contributions additionally helped produce a sturdy gross margin of 75.4% in Q2, a stage we count on to construct on as SaaS turns into a larger portion of our general topline.”

Qumu CFO Tom Krueger commented: “Qumu’s bettering monetary efficiency and powerful SaaS KPIs replicate the growing success and momentum of our partner-led gross sales technique in addition to our present prospects rising their funding. In reality, in Q2 we added new prospects at twice the speed of Q1 and greater than 80% of latest bookings within the first half of 2022 have been sourced or influenced by our companions. Moreover, over the past 12 months, our prospects have added 51% extra approved customers to our platform, and we have now seen a rise of asynchronous video views enhance by over 30%. The rising funding from our prospects is exemplified by our common annual contract worth growing by 474% within the first half of 2022. Triple-digit progress in contract dimension demonstrates our means to ship larger worth by means of further use instances once we purchase new prospects. As we proceed to develop our cloud enterprise, construct our associate ecosystem, and additional transition to a purely subscription-based mannequin, we count on our monetary efficiency to enhance all through 2022 and past.”

Bentley continued: “General, Qumu’s transformation is nicely underway, and our previous investments are yielding sturdy returns. Our enterprise is optimized and now hitting its stride. Our plan is supported by a strong money place and out there sources that present adequate runway to execute our progress technique. We entered Q3 with a file pipeline of alternatives that we’re changing at an escalating tempo. Our partner-led gross sales technique is gaining momentum and creating repeatable gross sales motions that give us confidence in our means to safe a file variety of new logos in 2022.

“Wanting forward we proceed to count on our SaaS recurring income as a proportion of our whole recurring income to be at the very least 65% by the tip of 2022 and 75% by the tip of 2023. We additionally proceed to count on to crossover to money move breakeven in 2023. We stay assured Qumu will emerge as a 100% subscription firm working at scale, benefiting from high-margin recurring revenues, rising money move and adjusted EBITDA and web revenue profitability.”

Second Quarter 2022 Monetary Outcomes

Income for Q2 2022 was $5.1 million, in comparison with $4.9 million in Q1 2022 and $5.9 million in Q2 2021. The year-over-year lower was because of the firm’s strategic shift away from perpetual license gross sales, and the associated upkeep income, and towards SaaS gross sales.

Service income for Q2 2022 was $4.9 million, in comparison with $4.Eight million in Q1 2022 and $5.7 million in Q2 2021. The year-over-year lower resulted from buyer contracts sunsetting, which impacted upkeep income related to the corporate’s on-premise resolution. Subscription and help income, which is included in service income and includes the corporate’s SaaS income, was $2.Eight million for Q2 2022, in comparison with $2.7 million in Q1 2022 and $2.5 million in Q2 2021. The corporate expects subscription income will proceed to develop as Qumu executes on its cloud transformation technique.

Gross margin in Q2 2022 was 75.4%, in comparison with gross margin of 71.5% for Q1 2022 and 73.6% for Q2 2021. The gross margin proportion improved due primarily to raised margins on SaaS income acknowledged in Q2 2022 in comparison with Q1 2022 and to a better proportion of SaaS income contributing to the general gross sales combine in comparison with Q2 2021.

Internet loss in Q2 2022 totaled $(2.6) million, or $(0.15) loss per fundamental and diluted share. This compares to web lack of $(4.6) million, or $(0.26) loss per fundamental and diluted share, for Q1 2022 and web lack of $(4.3) million, or $(0.24) loss per fundamental share and $(0.30) loss per diluted share, in Q2 2021.

Adjusted EBITDA loss, a non-GAAP measure, in Q2 2022 was $(3.1) million, in comparison with $(4.1) million in Q1 2022 and $(4.5) million in Q2 2021.

As of June 30, 2022, the corporate had money and money equivalents of $6.Four million.

Enterprise Outlook

Qumu supplies steerage based mostly on present market circumstances and expectations. The corporate emphasizes that its steerage is topic to numerous vital cautionary elements referenced within the part entitled “Ahead-Wanting Statements” under, together with dangers and uncertainties related to the corporate’s strategic plan, transition to SaaS recurring income by means of channel companions, and the COVID-19 pandemic, akin to tendencies in distributed distant and hybrid work impacting enterprise expertise adoption and procurement.

To provide perception into the progress of Qumu’s SaaS enterprise transformation, the corporate supplies a enterprise outlook based mostly on the share of recurring income comprised of SaaS income. Qumu’s administration reiterated its expectation that SaaS recurring income will comprise roughly 65% of its general recurring income combine by the tip of 2022, with focused progress to roughly 75% of recurring income combine by the tip of 2023.

Convention Name

Qumu govt administration will host a convention name right this moment (August 10, 2022) at 4:30 p.m. Japanese time. Register right here to affix the convention name:

https://register.vevent.com/register/BIb213b80569034b4e953e038a9d64a33f.

Traders also can entry a webcast of the reside convention name by linking by means of the investor relations part of the Qumu web site at https://ir.qumu.com. The webcast will likely be archived on Qumu’s web site for one yr.

Non-GAAP Data

To complement the corporate’s condensed consolidated monetary statements introduced on a GAAP foundation, the corporate makes use of Adjusted EBITDA, a non-GAAP measure, which excludes sure objects from web loss, a GAAP measure. Adjusted EBITDA excludes objects associated to curiosity revenue and expense, the influence of income-based taxes, depreciation and amortization, stock-based compensation, change in honest worth of spinoff and warrant liabilities, international forex beneficial properties and losses, Worker Retention Credit score revenue and different non-operating revenue and bills.

The corporate makes use of each GAAP and non-GAAP measures when planning, monitoring, and evaluating the corporate’s efficiency. The corporate believes that Adjusted EBITDA is helpful to traders as a result of it supplies supplemental info that permits traders to evaluation the corporate’s outcomes of operations from the identical perspective as administration and the corporate’s board of administrators. Non-GAAP outcomes are introduced for supplemental informational functions just for understanding our working outcomes. The non-GAAP outcomes shouldn’t be thought-about an alternative choice to monetary info introduced in accordance with usually accepted accounting ideas and could also be totally different from non-GAAP measures utilized by different corporations.

See the hooked up Supplemental Monetary Data for a reconciliation of web loss, a GAAP measure, to Adjusted EBITDA, a non-GAAP measure, for the three and 6 months ended June 30, 2022 and 2021.

About Qumu

Qumu (Nasdaq: QUMU) is a number one supplier of best-in-class instruments to create, handle, safe, distribute and measure the success of reside and on-demand video for the enterprise. The Qumu Cloud platform permits world organizations to drive human engagement, enhance entry to and insights from video use, and modernize the office by offering a extra environment friendly and efficient approach to share data.

Ahead-Wanting Statements

This press launch incorporates forward-looking statements which are made pursuant to the protected harbor provisions of the Non-public Securities Litigation Reform Act of 1995. Any statements contained on this press launch that aren’t statements of historic reality could also be deemed to be forward-looking statements. With out limiting the foregoing, phrases akin to “might,” “will,” “count on,” “consider,” “anticipate,” or “estimate” or comparable terminology are meant to determine forward-looking statements. Ahead-looking statements are topic to numerous dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed or implied in such statements.

Such forward-looking statements embrace, for instance, statements about: the success of go-to-market methods or the opposite initiatives within the firm’s strategic plan, the corporate’s means to proceed as a going concern, the anticipated use and adoption of video within the enterprise, the flexibility to acquire further capital as wanted, the flexibility to draw and retain essential personnel, the influence of COVID-19 on the use and adoption of video within the enterprise, the corporate’s future income and working efficiency, money balances, future product combine or the timing of recognition of income, or the demand for the corporate’s merchandise or software program. The dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed or implied in these forward-looking statements embrace the chance elements described within the firm’s Annual Report on Kind 10-Okay for the yr ended December 31, 2021, and different elements set forth within the firm’s filings with the Securities and Trade Fee.

The forward-looking statements on this press launch communicate solely as of the date of this press launch. Besides as required by legislation, Qumu assumes no obligation to replace or revise these forward-looking statements for any motive, even when new info turns into out there sooner or later, besides as required by legislation.