Qumu Studies Second Quarter 2022 Monetary Outcomes
Qumu Studies 10% Improve in Quarterly SaaS Income and SaaS Annual Recurring Income for Second Quarter 2022
Firm Reiterated its SaaS Development Expectations for 2022 and 2023
MINNEAPOLIS – August 10, 2022 – Qumu Company (Nasdaq: QUMU), a number one supplier of cloud-based enterprise video know-how, in the present day 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 complete 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 stability 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 total recurring income combine by the top of 2022, with focused development to roughly 75% of recurring income combine by the top 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 complete 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:
â—¦Gross Retention Charge (GRR): 90% at finish of Q2 2022 in comparison with 81% at finish of Q2 2021
â—¦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 display the continued execution of our technique to develop our cloud enterprise and scale our SaaS income base,” stated Qumu President and CEO Rose Bentley. “Highlighting our success in Q2 was a 10% enhance in each SaaS income and SaaS ARR, placing us properly on monitor to realize our SaaS development 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 degree we count on to construct on as SaaS turns into a higher portion of our total topline.”
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Qumu CFO Tom Krueger commented: “Qumu’s enhancing monetary efficiency and powerful SaaS KPIs mirror the rising success and momentum of our partner-led gross sales technique in addition to our present prospects rising their funding. In actual fact, in Q2 we added new prospects at twice the speed of Q1 and greater than 80% of recent bookings within the first half of 2022 had been sourced or influenced by our companions. Moreover, during the last 12 months, our prospects have added 51% extra licensed customers to our platform, and now we have 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 rising by 474% within the first half of 2022. Triple-digit development in contract measurement demonstrates our means to ship higher worth by extra use circumstances 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: “Total, Qumu’s transformation is properly 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 accessible sources that present ample runway to execute our development technique. We entered Q3 with a document 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 document variety of new logos in 2022.
“Trying forward we proceed to count on our SaaS recurring income as a proportion of our complete recurring income to be not less than 65% by the top of 2022 and 75% by the top 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 as a result of 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 answer. Subscription and assist 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 the next 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 primary and diluted share. This compares to web lack of $(4.6) million, or $(0.26) loss per primary and diluted share, for Q1 2022 and web lack of $(4.3) million, or $(0.24) loss per primary 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.
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Enterprise Outlook
Qumu offers steerage based mostly on present market situations and expectations. The corporate emphasizes that its steerage is topic to numerous necessary cautionary components referenced within the part entitled “Ahead-Trying Statements” beneath, together with dangers and uncertainties related to the corporate’s strategic plan, transition to SaaS recurring income by channel companions, and the COVID-19 pandemic, equivalent to developments in distributed distant and hybrid work impacting enterprise know-how adoption and procurement.
To offer perception into the progress of Qumu’s SaaS enterprise transformation, the corporate offers 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 total recurring income combine by the top of 2022, with focused development to roughly 75% of recurring income combine by the top of 2023.
Convention Name
Qumu govt administration will host a convention name in the present day (August 10, 2022) at 4:30 p.m. Jap time. Register right here to affix the convention name:
Traders may entry a webcast of the stay convention name by linking by 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 12 months.
Non-GAAP Data
To complement the corporate’s condensed consolidated monetary statements offered on a GAAP foundation, the corporate makes use of Adjusted EBITDA, a non-GAAP measure, which excludes sure gadgets from web loss, a GAAP measure. Adjusted EBITDA excludes gadgets associated to curiosity revenue and expense, the affect of income-based taxes, depreciation and amortization, stock-based compensation, change in truthful worth of spinoff and warrant liabilities, overseas forex positive factors 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 beneficial to buyers as a result of it offers supplemental data that enables buyers to assessment the corporate’s outcomes of operations from the identical perspective as administration and the corporate’s board of administrators. Non-GAAP outcomes are offered for supplemental informational functions just for understanding our working outcomes. The non-GAAP outcomes shouldn’t be thought-about an alternative choice to monetary data offered in accordance with usually accepted accounting ideas and could also be totally different from non-GAAP measures utilized by different firms.
See the connected 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 stay and on-demand video for the enterprise. The Qumu Cloud platform allows international 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 method to share information.
Ahead-Trying Statements
This press launch accommodates forward-looking statements which can be made pursuant to the secure 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 truth could also be deemed to be forward-looking statements. With out limiting the foregoing, phrases equivalent to “might,” “will,” “count on,” “imagine,” “anticipate,” or “estimate” or comparable terminology are meant to
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determine forward-looking statements. Ahead-looking statements are topic to numerous dangers and uncertainties that would trigger precise outcomes to vary materially from these expressed or implied in such statements.
Such forward-looking statements embody, 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 power to acquire extra capital as wanted, the power to draw and retain essential personnel, the affect 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 would trigger precise outcomes to vary materially from these expressed or implied in these forward-looking statements embody the danger components described within the firm’s Annual Report on Type 10-Okay for the 12 months ended December 31, 2021, and different components set forth within the firm’s filings with the Securities and Alternate Fee.
The forward-looking statements on this press launch converse solely as of the date of this press launch. Besides as required by regulation, Qumu assumes no obligation to replace or revise these forward-looking statements for any cause, even when new data turns into accessible sooner or later, besides as required by regulation.
Firm Contact:
Tom Krueger
Chief Monetary Officer
Qumu Company
Tom.Krueger@qumu.com
+1.612.638.9100
Investor Contact:
Matt Glover or Tom Colton
Gateway Investor Relations
QUMU@gatewayir.com
+1.949.574.3860
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QUMU CORPORATION
Condensed Consolidated Statements of Operations
(unaudited – in 1000’s, besides per share information)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Revenues: | ||||||||
| Software program licenses and home equipment | $ | 278 | $ | 138 | $ | 389 | $ | 246 |
| Service | 4,853 | 5,729 | 9,682 | 11,441 | ||||
| Whole revenues | 5,131 | 5,867 | 10,071 | 11,687 | ||||
| Value of revenues: | ||||||||
| Software program licenses and home equipment | 48 | 63 | 79 | 127 | ||||
| Service | 1,212 | 1,486 | 2,591 | 2,989 | ||||
| Whole price of revenues | 1,260 | 1,549 | 2,670 | 3,116 | ||||
| Gross revenue | 3,871 | 4,318 | 7,401 | 8,571 | ||||
| Working bills: | ||||||||
| Analysis and improvement | 1,930 | 2,184 | 3,755 | 4,214 | ||||
| Gross sales and advertising and marketing | 2,687 | 5,173 | 6,495 | 9,649 | ||||
| Common and administrative | 2,251 | 2,142 | 4,694 | 4,669 | ||||
| Amortization of bought intangibles | 153 | 163 | 309 | 325 | ||||
| Whole working bills | 7,021 | 9,662 | 15,253 | 18,857 | ||||
| Working loss | (3,150) | (5,344) | (7,852) | (10,286) | ||||
| Different revenue (expense): | ||||||||
| Worker Retention Credit score revenue | 649 | – | 649 | – | ||||
| Curiosity expense, web | (39) | (15) | (109) | (69) | ||||
| Lower in truthful worth of spinoff legal responsibility | – | – | – | 37 | ||||
| Lower in truthful worth of warrant legal responsibility | 51 | 1,018 | 117 | 1,375 | ||||
| Different, web | (156) | (89) | (184) | (27) | ||||
| Whole different revenue (expense), web | 505 | 914 | 473 | 1,316 | ||||
| Loss earlier than revenue taxes | (2,645) | (4,430) | (7,379) | (8,970) | ||||
| Earnings tax profit | (23) | (109) | (117) | (199) | ||||
| Internet loss | $ | (2,622) | $ | (4,321) | $ | (7,262) | $ | (8,771) |
| Internet loss per share – primary: | ||||||||
| Internet loss per share – primary | $ | (0.15) | $ | (0.24) | $ | (0.40) | $ | (0.51) |
| Weighted common shares excellent – primary | 18,072 | 17,741 | 18,042 | 17,096 | ||||
| Internet loss per share – diluted: | ||||||||
| Loss attributable to widespread shareholders | $ | (2,622) | $ | (5,339) | $ | (7,262) | $ | (10,146) |
| Internet loss per share – diluted | $ | (0.15) | $ | (0.30) | $ | (0.40) | $ | (0.59) |
| Weighted common shares excellent – diluted | 18,072 | 17,899 | 18,042 | 17,299 |
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QUMU CORPORATION
Condensed Consolidated Stability Sheets
(unaudited – in 1000’s)
| June 30, | December 31, | |||
| Property | 2022 | 2021 | ||
| Present belongings: | ||||
| Money and money equivalents | $ | 6,435 | $ | 20,563 |
| Receivables, web | 3,467 | 3,709 | ||
| Contract belongings | 676 | 446 | ||
| Earnings taxes receivable | 658 | 556 | ||
| Different receivable | 649 | – | ||
| Pay as you go bills and different present belongings | 2,094 | 2,184 | ||
| Whole present belongings | 13,979 | 27,458 | ||
| Property and tools, web | 222 | 337 | ||
| Proper of use belongings – working leases | 45 | 146 | ||
| Intangible belongings, web | 1,049 | 1,388 | ||
| Goodwill | 6,639 | 7,388 | ||
| Deferred revenue taxes, non-current | 17 | 17 | ||
| Different belongings, non-current | 320 | 362 | ||
| Whole belongings | $ | 22,271 | $ | 37,096 |
| Liabilities and Stockholders’ Fairness | ||||
| Present liabilities: | ||||
| Accounts payable and different accrued liabilities | $ | 3,521 | $ | 2,742 |
| Accrued compensation | 1,380 | 1,725 | ||
| Deferred income | 9,604 | 10,862 | ||
| Working lease liabilities | 192 | 597 | ||
| Financing obligations | 152 | 5,502 | ||
| Warrant legal responsibility | 684 | 801 | ||
| Whole present liabilities | 15,533 | 22,229 | ||
| Lengthy-term liabilities: | ||||
| Deferred income, non-current | 1,102 | 1,507 | ||
| Earnings taxes payable, non-current | 641 | 630 | ||
| Working lease liabilities, non-current | – | 21 | ||
| Financing obligations, non-current | 87 | 113 | ||
| Whole long-term liabilities | 1,830 | 2,271 | ||
| Whole liabilities | 17,363 | 24,500 | ||
| Stockholders’ fairness: | ||||
| Widespread inventory | 179 | 178 | ||
| Further paid-in capital | 105,785 | 105,655 | ||
| Accrued deficit | (97,955) | (90,693) | ||
| Accrued different complete loss | (3,101) | (2,544) | ||
| Whole stockholders’ fairness | 4,908 | 12,596 | ||
| Whole liabilities and stockholders’ fairness | $ | 22,271 | $ | 37,096 |
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QUMU CORPORATION
Condensed Consolidated Statements of Money Flows
(unaudited – in 1000’s)
|
Six Months Ended June 30, |
||||
| 2022 | 2021 | |||
| Working actions: | ||||
| Internet loss | $ | (7,262) | $ | (8,771) |
| Changes to reconcile web loss to web money utilized in working actions: | ||||
| Depreciation and amortization | 427 | 492 | ||
| Loss on disposal of property and tools | – | 3 | ||
| Inventory-based compensation | 150 | 1,155 | ||
| Accretion of debt low cost and issuance prices | 27 | 33 | ||
| Lower in truthful worth of spinoff legal responsibility | – | (37) | ||
| Lower in truthful worth of warrant legal responsibility | (117) | (1,375) | ||
| Adjustments in working belongings and liabilities: | ||||
| Receivables | 138 | 1,802 | ||
| Contract belongings | (230) | 238 | ||
| Earnings taxes receivable / payable | (152) | 221 | ||
| Different receivable | (649) | – | ||
| Pay as you go bills and different belongings | 151 | (105) | ||
| Accounts payable and different accrued liabilities | 658 | (242) | ||
| Accrued compensation | (322) | (1,305) | ||
| Deferred income | (1,360) | (3,724) | ||
| Internet money utilized in working actions | (8,541) | (11,615) | ||
| Investing actions: | ||||
| Purchases of property and tools | (8) | (216) | ||
| Internet money utilized in investing actions | (8) | (216) | ||
| Financing actions: | ||||
| Principal funds on line of credit score | (5,000) | (1,840) | ||
| Proceeds from line of credit score | – | 1,840 | ||
| Principal funds on time period mortgage | – | (1,833) | ||
| Cost for line of credit score issuance prices | (86) | – | ||
| Principal funds on financing obligations | (376) | (219) | ||
| Internet proceeds from widespread inventory issuance | – | 23,085 | ||
| Proceeds from issuance of widespread inventory underneath worker inventory plans | – | 226 | ||
| Widespread inventory repurchases to settle worker withholding legal responsibility | (19) | (6) | ||
| Internet money supplied by (utilized in) financing actions | (5,481) | 21,253 | ||
| Impact of trade fee modifications on money | (98) | 28 | ||
| Internet enhance (lower) in money and money equivalents | (14,128) | 9,450 | ||
| Money and money equivalents, starting of interval | 20,563 | 11,878 | ||
| Money and money equivalents, finish of interval | $ | 6,435 | $ | 21,328 |
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QUMU CORPORATION
Supplemental Monetary Data
(unaudited – in 1000’s)
A abstract of income is as follows:
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Software program licenses and home equipment | $ | 278 | $ | 138 | $ | 389 | $ | 246 |
| Service | ||||||||
| Subscription and assist | 2,764 | 2,512 | 5,419 | 4,827 | ||||
| Upkeep and assist | 1,769 | 2,570 | 3,562 | 5,234 | ||||
| Subscription, upkeep and assist | 4,533 | 5,082 | 8,981 | 10,061 | ||||
| Skilled companies and different | 320 | 647 | 701 | 1,380 | ||||
| Whole service | 4,853 | 5,729 | 9,682 | 11,441 | ||||
| Whole income | $ | 5,131 | $ | 5,867 | $ | 10,071 | $ | 11,687 |
A reconciliation from GAAP outcomes to Adjusted EBITDA is as follows:
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Internet loss | $ | (2,622) | $ | (4,321) | $ | (7,262) | $ | (8,771) |
| Curiosity expense, web | 39 | 15 | 109 | 69 | ||||
| Earnings tax profit | (23) | (109) | (117) | (199) | ||||
| Depreciation and amortization expense: | ||||||||
| Depreciation and amortization in working bills | 58 | 59 | 118 | 113 | ||||
| Whole depreciation and amortization expense | 58 | 59 | 118 | 113 | ||||
| Amortization of intangibles included in price of revenues | – | 27 | – | 54 | ||||
| Amortization of intangibles included in working bills | 153 | 163 | 309 | 325 | ||||
| Whole amortization of intangibles expense | 153 | 190 | 309 | 379 | ||||
| Whole depreciation and amortization expense | 211 | 249 | 427 | 492 | ||||
| EBITDA | (2,395) | (4,166) | (6,843) | (8,409) | ||||
| Worker Retention Credit score revenue | (649) | – | (649) | – | ||||
| Lower in truthful worth of spinoff legal responsibility | – | – | – | (37) | ||||
| Lower in truthful worth of warrant legal responsibility | (51) | (1,018) | (117) | (1,375) | ||||
| Different expense (revenue), web | 156 | 89 | 184 | 27 | ||||
| Inventory-based compensation expense: | ||||||||
| Inventory-based compensation included in price of revenues | 17 | 17 | 36 | 32 | ||||
| Inventory-based compensation included in working bills | (223) | 549 | 114 | 1,123 | ||||
| Whole stock-based compensation expense | (206) | 566 | 150 | 1,155 | ||||
| Adjusted EBITDA | $ | (3,145) | $ | (4,529) | $ | (7,275) | $ | (8,639) |
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Disclaimer
Qumu Company printed this content material on 12 August 2022 and is solely chargeable for the knowledge contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 10:10:17 UTC.
Publicnow 2022
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Technical evaluation developments QUMU CORPORATION
| Quick Time period | Mid-Time period | Lengthy Time period | |
| Tendencies | Bullish | Bearish | Bearish |
Earnings Assertion Evolution
|
Promote
Purchase |
|
| Imply consensus | OUTPERFORM |
| Variety of Analysts | 2 |
| Final Shut Worth | 0,84Â $ |
| Common goal worth | 4,00Â $ |
| Unfold / Common Goal | 378% |
