Press Releases

RetailMeNot Announces First Quarter 2015 Financial Results
- Mobile Online Transaction Net Revenues grew 137% over the prior year period
- Advertising + In-Store Net Revenues grew 100% over the prior year period
- GAAP EPS of $0.07; non-GAAP EPS of $0.20
- Adjusted EBITDA of $18.7 million; EBITDA margins of 31%

AUSTIN, Texas, May 5, 2015 /PRNewswire/ -- RetailMeNot, Inc. (NASDAQ:SALE), the operator of the world's largest marketplace for digital offers, today announced its financial results for the first quarter ended March 31, 2015.

RetailMeNot, Inc.

First Quarter Financial Results Highlights and Key Operating Metrics

(All comparisons are made to the first quarter of 2014 unless otherwise noted)

  • Total net revenues declined 1% to $60.4 million.
  • Mobile online transaction net revenues increased 137% to $5.6 million, representing 9% of total net revenues. 
  • Advertising + in-store net revenues increased 100% to $7.7 million, representing 13% of total net revenues.
  • Desktop online transaction net revenues, which includes desktop and tablet, declined 14%, to $47.1 million, representing 78% of total net revenues.
  • Net revenues from international markets were flat, totaling $13.7 million, representing 23% of total net revenues.
  • GAAP net income was $4.1 million, reflecting a decrease of 33%, compared to $6.1 million.
  • Non-GAAP net income was $10.8 million, reflecting a decrease of 15%, compared to $12.6 million.
  • EPS was $0.07 per share, based on 55.0 million fully-diluted, weighted-average shares outstanding.
  • Non-GAAP EPS was $0.20 per share, based on 55.0 million fully-diluted, weighted-average shares outstanding.
  • Adjusted EBITDA was $18.7 million, down 13% and representing 31% of total net revenues.
  • Total visits grew 16% to 179.9 million.
  • Monthly mobile unique visitors grew 55% totaling 18.4 million.

"We made solid progress this quarter in executing on our plans to further monetize our fast growing mobile audience," said Cotter Cunningham, CEO & Founder, RetailMeNot, Inc.  "In 2015, we continue to focus on innovating and investing in our highest growth areas such as in-store and mobile, increasing our audience of consumers coming directly to our marketplace, investing in a strong sales organization to deepen our relationships with retailers and looking for ways to help more consumers save money across the growing omni-channel landscape."

Business Outlook

Second Quarter 2015

  • Total net revenues are expected to be in the range of $55.0 to $58.0 million, or a decline of 5% at the mid-point.
  • Adjusted EBITDA is expected to be in the range of $12.0 to $14.0 million, or adjusted EBITDA margins of 23% at the mid-point. 

Full Year 2015

The company is reiterating guidance for the year:

  • Total net revenues are expected to be in the range of $275 to $285 million, or growth of 6% at the mid-point.
  • Adjusted EBITDA is expected to be in the range of $92 to $100 million, or adjusted EBITDA margins of 34% at the mid-point.

The above statements are based on current expectations and actual results may differ materially as explained in "Forward-looking Statements" below.  Information about RetailMeNot's use of non-GAAP financial measures is provided below under the caption "Use of Non-GAAP Financial Measures".

Quarterly Conference Call

RetailMeNot will host a webcast to discuss its first quarter 2015 financial results and business outlook today at 7:00 a.m Central Time (8:00 a.m. Eastern Time). 

A live webcast of the conference call can be accessed within the investor relations section of the RetailMeNot website at http://investor.retailmenot.com.  This webcast will contain forward-looking statements and other material information regarding the company's financial and operating results. Additionally, in advance of the conference call, RetailMeNot will post first quarter 2015 Management Commentary that can be accessed at http://investor.retailmenot.com

Following completion of the call, a recorded replay of the webcast will be available on the website at http://investor.retailmenot.com.  A replay of the call will be available beginning at 10:30 a.m. Central Time on May 5, 2015 through May 12, 2015 at 10:59 p.m. Central Time.  To listen to the telephone replay, call (855) 859-2056 within the US, or (404) 537-3406 if calling internationally.  Access Code 22584279.

About RetailMeNot, Inc. 

RetailMeNot, Inc. (http://www.retailmenot.com/corp/) operates the world's largest marketplace for digital offers. The company enables consumers across the globe to find hundreds of thousands of digital offers for their favorite retailers and brands. During the 12 months ended March 31, 2015, RetailMeNot, Inc. experienced over 720 million visits its websites, and during the three months ended March 31, 2015, monthly mobile unique visitors totaled 18.4 million. In 2014, RetailMeNot, Inc. estimates $4.4 billion in paid retailer sales were attributable to consumer traffic from digital offers in its marketplace. The RetailMeNot, Inc. portfolio includes RetailMeNot.com, the largest digital offer marketplace in the United States; RetailMeNot.ca in Canada; VoucherCodes.co.uk, the largest digital offers marketplace in the United Kingdom; Deals.com in Germany; Actiepagina.nl, a leading digital offers site in the Netherlands; Bons-de-Reduction.com and Ma-Reduc.com, leading digital offers sites in France; Poulpeo.com, a leading digital offers site with cash back in France; andDeals2Buy.com, a digital offers site in North America. RetailMeNot, Inc. is listed on the NASDAQ stock exchange under the ticker symbol "SALE." Investors interested in learning more about the company can visit http://investor.retailmenot.com.

Key Operating Metrics

Visits. RetailMeNot defines a visit as a group of interactions that take place on one of RetailMeNot's websites from computers, smartphones, tablets or other mobile devices within a given time frame as measured by Google Analytics, a product that provides digital marketing intelligence. A single visit can contain multiple page views, events, social interactions and e-commerce transactions. A single visitor can open multiple visits. Visits can occur on the same day, or over several days, weeks or months. As soon as one visit ends, there is then an opportunity to start a new visit. A visit ends either through the passage of time or a campaign change, with a campaign generally meaning arrival via search engine, referring site or campaign-tagged information. A visit ends through passage of time either after 30 minutes of inactivity or at midnight Pacific Time. A visit ends through a campaign change if a visitor arrives via one campaign or source, leaves the site, and then returns via another campaign or source.  Visits for the period do not include interactions through our mobile applications.

Monthly Mobile Unique Visitors.  This amount represents the average number of monthly mobile unique visitors for the three month period ending March 31, 2015.  RetailMeNot counts each of the following as a monthly mobile unique visitor: (i) the first time a specific mobile device accesses one of our mobile applications during a calendar month, and (ii) the first time a specific mobile device accesses one of our mobile websites using a specific web browser during a calendar month. If a mobile device accesses more than one of our mobile websites or mobile applications in a single calendar month, the first access to each such mobile website or mobile application is counted as a monthly mobile unique visitor as they are tracked separately for each mobile domain. We measure monthly mobile unique visitors with a combination of internal data sources and Google Analytics data.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share, all of which are non-GAAP financial measures.  For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the tables provided in this release below.

RetailMeNot defines adjusted EBITDA as net income plus depreciation, amortization of intangible assets, stock-based compensation expense, third-party acquisition-related costs, other non-cash operating expenses (including compensation arrangements entered into in connection with acquisitions), net interest expense, other non-operating income or expense (including net foreign exchange gains and losses) and income taxes.

RetailMeNot discloses adjusted EBITDA because it is a key measure used by RetailMeNot and its board of directors to understand and evaluate RetailMeNot's financial and operating performance, establish budgets and operational goals and as an element in determining executive compensation.  RetailMeNot believes it also facilitates period-to-period comparisons of operations that could otherwise be masked by the effect of the expenses that RetailMeNot excludes in this non-GAAP financial measure and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. 

Our presentation of non-GAAP net income and non-GAAP net income per share excludes the impact of amortization of purchased intangible assets, stock-based compensation expense, third party acquisition-related costs, other non-cash operating expenses (including compensation arrangements entered into in connection with acquisitions) and income taxes, net of the tax effect of the adjustments above.  These measures are not key metrics used by RetailMeNot or its board of directors to measure financial or operating performance or otherwise manage the business. However, RetailMeNot provides non-GAAP net income and non-GAAP net income per share as supplemental information for investors, as they facilitate period-to-period comparisons of operations that could otherwise be masked by the effect of the expenses that RetailMeNot excludes in these non-GAAP financial measures and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. 

Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of RetailMeNot's results as reported under GAAP. Because of these limitations, you should consider Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share alongside other financial performance measures, including various cash flow metrics, net income and RetailMeNot's other GAAP results.

Forward-looking Statements               

This release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding RetailMeNot's strategy, future operations, future financial position, future net revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would" and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management's estimates regarding future net revenues and financial performance, visits, monthly mobile unique visitors, e-mail subscribers, other consumer engagement metrics and other statements about management's beliefs, intentions or goals. RetailMeNot may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on RetailMeNot's forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to, (1) RetailMeNot's ability to attract visitors to its websites from search engines; (2) RetailMeNot's ability to monetize digital offers available through its mobile solutions; (3) RetailMeNot's ability to attract and retain paid retailers and maintain its relationships with performance marketing networks; (4) risks related to RetailMeNot's ability to manage its growth, including accurately planning and forecasting its financial results; (5) RetailMeNot's ability to obtain and maintain digital offer content and maintain the positive perception of its brand; (6) the competitive environment for RetailMeNot's business; (7) changes in consumer sentiment regarding RetailMeNot's use of cookies; (8) RetailMeNot's need to manage regulatory, tax and litigation risks, including regulations imposing sales tax on e-commerce or m-commerce; (9) RetailMeNot's ability to protect consumer data and its intellectual property; (10) RetailMeNot's ability to manage international business uncertainties; (11) the impact and integration of recent and future acquisitions; and (12) other risks and potential factors that could affect RetailMeNot's business and financial results identified in RetailMeNot's filings with the Securities and Exchange Commission (the "SEC"), including its annual report on Form 10-K filed with the SEC on February 25, 2015.  Additional information will also be set forth in RetailMeNot's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that RetailMeNot makes with the SEC. RetailMeNot does not intend or undertake any duty to release publicly any updates or revisions to any forward-looking statements contained herein.

Investor Contact
Michael Magaro
RetailMeNot, Inc.
mmagaro@rmn.com 
(512) 777-2899

Media Contact
Brian Hoyt
RetailMeNot, Inc.
bhoyt@rmn.com 
(512) 777-2957

-- RMNSALE-F –

 

RetailMeNot, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)







Three Months Ended March 31,



2015


2014







Net revenues

$60,384


$61,270


Costs and expenses:





Cost of net revenues(1) 

5,346


4,430


Product development(1) 

13,320


10,706


Sales and marketing(1) 

21,641


21,172


General and administrative(1) 

9,570


9,347


Amortization of purchased intangible assets

2,626


3,443


Other operating expenses

765


1,348


Total costs and expenses

53,268


50,446


Income from operations

7,116


10,824







Other income (expense):





Interest expense, net

(421)


(531)


Other income (expense), net

(243)


28







Income before income taxes

6,452


10,321


Provision for income taxes

(2,393)


(4,246)







Net income

4,059


6,075







Preferred stock dividends on participating preferred stock

-


-







Total undistributed earnings (loss)

4,059


6,075


Undistributed earnings allocated to participating preferred stock

-


-







Net income (loss) attributable to common stockholders

4,059


6,075







Net income (loss) per share attributable to common stockholders:





Basic

$0.08


$0.11


Diluted

$0.07


$0.11







Weighted average number of shares used in computing net income (loss) per share:





Basic 

54,029


53,149


Diluted 

55,035


55,562












RetailMeNot, Inc.

Condensed Consolidated Statements of Operations (continued)

(Unaudited, in thousands)







Three Months Ended March 31,



2015


2014


(1) Includes stock-based compensation as follows: 





Cost of net revenues

$589


$341


Product development

2,259


1,324


Sales and marketing

1,422


1,238


General and administrative

2,543


2,111


 Total 

$6,813


$5,014

















RetailMeNot, Inc.

Reconciliation of Adjusted EBITDA

(Unaudited, in thousands)







Three Months Ended March 31,



2015


2014







 Net income 

$    4,059


$    6,075


 Depreciation and amortization 

3,926


4,204


 Stock-based compensation expense 

6,813


5,014


 Third party acquisition-related costs 

55


-


 Other operating expenses 

765


1,348


 Interest expense, net 

421


531


 Other income (expense), net 

243


(28)


 Provision for income taxes 

2,393


4,246







 Adjusted EBITDA 

$  18,675


$  21,390

















RetailMeNot, Inc.

Reconciliation of Non-GAAP Net Income and  Non-GAAP Diluted EPS

(Unaudited, in thousands, except per share data)












Three Months Ended March 31,



2015


2014


GAAP Income before income taxes

6,452


10,321


GAAP provision for income taxes

(2,393)


(4,246)


GAAP Net income

$    4,059


$    6,075


Non-GAAP adjustments to net income:





 Amortization of purchased intangibles 

2,626


3,443


 Stock-based compensation expense 

6,813


5,014


 Third party acquisition-related costs 

55


-


 Other operating expenses 

765


1,348


 Less: Tax effect of adjustments above 

(3,544)


(3,263)


 Total non-GAAP net income 

$  10,774


$  12,617







Diluted net income per share





GAAP  

$       0.07


$       0.11


Non-GAAP

$      0.20


$       0.23







Shares used in non-GAAP diluted EPS calculation:





Weighed-average shares outstanding used in calculating GAAP diluted EPS

55,035


55,562


Additional dilutive securities for non-GAAP diluted EPS

-


-


Weighted-average shares from assumed conversion of preferred stock prior to IPO

-


-


Weighted-average shares outstanding used in calculating non-GAAP diluted EPS

55,035


55,562







Reconciliation of non-GAAP effective tax rate:





GAAP Effective tax rate

37.1%


41.1%


Tax effect of non-GAAP adjustments to net income

-1.6%


-3.8%


Non-GAAP effective tax rate

35.5%


37.3%


 

RetailMeNot, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)


 As of March 31, 


 As of December 31, 


2015


2014

 Assets 




 Current assets: 




 Cash and cash equivalents 

$               280,315


$                        244,482

 Accounts receivable, net 

45,521


69,603

 Prepaids and other current assets, net 

14,244


14,930

 Total current assets 

340,080


329,015





 Property and equipment, net 

17,903


16,949

 Intangible assets, net 

67,247


70,819

 Goodwill 

174,628


176,927

 Other assets, net 

4,885


5,394

 Total assets 

$               604,743


$                        599,104





 Liabilities, Redeemable Convertible Preferred Stock
 and Stockholders' Equity (Deficit) 




 Current liabilities: 




   Accounts payable 

$                    4,655


$                             5,482

   Accrued compensation and benefits 

6,327


12,138

   Accrued expenses and other current liabilities 

8,389


6,110

   Income taxes payable 

3,016


9,032

   Current maturities of long term debt 

10,000


10,000

 Total current liabilities 

32,387


42,762





 Derivatives liability 

-


-

 Deferred tax liability--noncurrent 

4,991


3,404

 Long term debt 

70,000


40,000

 Other noncurrent liabilities 

8,008


8,183

   Total liabilities 

115,386


94,349





 Stockholders' equity (deficit): 




 Common stock 

53


54

 Additional paid-In capital 

500,896


517,421

 Accumulated other comprehensive loss 

(4,873)


(1,942)

 Accumulated deficit 

(6,719)


(10,778)

   Total stockholders' equity (deficit) 

489,357


504,755

 Liabilities, Redeemable Convertible Preferred Stock
 and Stockholders' Equity (Deficit) 

$               604,743


$                        599,104

 

RetailMeNot, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)







Three Months Ended March 31,



2015


2014


 Cash flows from operating activities: 





Net income

$4,059


$6,075


 Adjustments to reconcile net income to cash provided by
 operating activities: 





  Depreciation and amortization expense

3,926


4,204


  Stock based compensation expense

6,813


5,014


  Excess income tax benefit from stock-based compensation and other

(755)


(8,314)


  Deferred income tax expense (benefit) 

1,698


(4)


  Non-cash interest expense

102


97


  Amortization of deferred compensation

768


1,347


  Other non-cash (gains) losses, net

1,038


55


  Provision for doubtful accounts receivable

(252)


375


Changes in operating assets and liabilities:





Accounts receivable, net

23,142


15,567


Prepaid expenses and other current assets, net

(843)


(987)


Accounts payable

376


(1,977)


Accrued expenses and other current liabilities

(10,084)


(3,975)


Other noncurrent assets and liabilities

634


830


 Net cash provided by (used in) operating activities 

$30,622


18,307


 Cash flows from investing activities: 





  Payments for acquisition of businesses, net of acquired cash

-


-


  Purchase of other assets

(2)


-


  Purchase of property and equipment

(2,332)


(2,393)


 Net cash used in investing activities 

(2,334)


(2,393)


 Cash flows from financing activities: 





    Proceeds from notes payable, net of issuance costs

29,950


-


    Payments on notes payable

-


(1,750)


    Payments of preferred stock dividends

-


-


    Proceeds from public offerings, net of offering costs

-


(64)


    Excess income tax benefit from stock-based compensation and other

755


8,314


    Payments of principal on capital lease arrangements

(3)


(3)


    Payments for repurchase of common stock

(24,473)


(6)


    Proceeds from issuance of common stock, net of shares withheld for taxes

2,393


8,139


 Net cash provided by (used in) financing activities 

8,622


14,630


 Effect of exchange rate changes on cash 

(1,077)


41


 Change in cash and cash equivalents 

35,833


30,585


  Cash and cash equivalents, beginning of period 

244,482


165,881







  Cash and cash equivalents, end of period 

$280,315


$196,466


 

Logo - http://photos.prnewswire.com/prnh/20130626/DA38415LOGO

 

SOURCE RetailMeNot, Inc.


Media Contacts

North America
RetailMeNot PR Department
Media Inquiries: +1 512 777 2957
France
Sophie Cazaux
RetailMeNot, France, S.A.S
+33 (0) 1 42 61 15 80