- Third Quarter Revenue Increases 22% to $109.2 Million
- Year-to-Date Revenue Up 24% to $325.2 Million
- Third Quarter Adjusted EBITDA $15.4 Million
SAN DIEGO, CALIF. – November 1, 2012 – ACTIVE Network (NYSE: ACTV), the leader in cloud-based Activity and Participant Management™ (APM) solutions, today announced its financial results for the third quarter ended September 30, 2012.
Q3 2012 Financial Highlights:
(All comparisons are made to the third quarter of 2011)
- Total net revenue up 22% to $109.2 million.
- Technology revenue increased 26% and constituted 88%, or $96.2 million, of total net revenue.
- Net registration revenue increased 19% to $72.7 million with the number of registrations up 7% and the revenue per registration up 11%.
- Marketing services revenue constituted 12%, or $13.0 million, of total net revenue.
- Net loss was $6.0 million compared to a net loss of $1.4 million.
- Adjusted EBITDA, a non-GAAP financial measure, was $15.4 million. Excluding the impact of business combination accounting rules related to deferred revenue, Adjusted EBITDA was $18.0 million, up 40%.
"We delivered strong third quarter results and continued to make progress expanding our customer base, driving innovation in our horizontal ActiveWorks® platform and penetrating new markets,” said Matt Landa, CEO of ACTIVE Network. “We added a number of new high profile customers, including NYSE Euronext, the Philadelphia Zoo, and The PGA of America. Additionally, we expanded our presence in the Outdoors market with the addition of Saskatchewan and Puerto Rico, who have agreed to implement our ActiveWorks platform to automate their respective hunting and fishing permitting operations.”
ACTIVE Network Executive Chairman, Dave Alberga, stated, “Looking ahead, we believe the organizational changes we recently implemented will help leverage the exceptional talent we have at ACTIVE, expand our capabilities and drive long-term growth. Our team will be laser focused on product innovation and sales execution.”
Q3 2012 Key Business Highlights
- The NYSE EURONEXT selected ACTIVE to manage its corporate events with its leading event management solution.
- ACTIVE entered into a partnership with The PGA of America to create a new online registration system for the PGA’s nationwide “Get Golf Ready” campaign, which will allow PGA Professionals to promote their golf camps, tournaments and clinics via PGA.com and ACTIVE.com.
- The Company announced that the Philadelphia Zoo has chosen its resorts and attractions technology solution to power its Zoo operations—from ticketing and point of sale to food and beverage sales.
Fourth Quarter 2012 - For the fourth quarter of 2012, ACTIVE Network expects total revenue to be in the range of $93 million to $97 million. Registrations are expected to grow approximately 5% to 10% and revenue per registration is expected to grow approximately 8% to 10% compared to the same period in the prior year. The Company expects Adjusted EBITDA in the range of $5 million to $7 million. Excluding the impact of business combination accounting rules, Adjusted EBITDA is expected to be in the range of $6.6 million to $8.6 million. The Company expects a net loss of $18 million to $13 million.
Full Year 2012 - For full year 2012, ACTIVE Network expects total revenue to be in the range of $418 million to $422 million. Registrations are expected to grow approximately 11% to 13% and revenue per registration is expected to grow approximately 6% to 8% compared to last year. The Company expects Adjusted EBITDA in the range of $37.5 million to $39.5 million. Excluding the impact of business combination accounting rules, Adjusted EBITDA is expected to be in the range of $50 million to $52 million. The Company expects a net loss of $47 million to $42 million.
Full Year 2013 - ACTIVE Network also introduced initial financial guidance for full year 2013. Total revenue is expected to be in the range of $470 million to $480 million and Adjusted EBITDA is expected to be in the range of $50 million to $54 million. The Company expects a net loss of $38 million to $31 million.
“We delivered strong third quarter revenue growth of 22%, gross margins expanded 110 basis points to 56.6% and Adjusted EBITDA came in at $15.4 million,” said Scott Mendel, CFO of ACTIVE Network. “Based on our year-to-date financial results and assumptions for the balance of the year, we believe it is appropriate to provide our 2013 forecast for revenue and Adjusted EBITDA at this time. Our outlook assumes overall growth rates of 12% to 14%, which is comparable to our expectations for 2012.”
Conference Call Information
ACTIVE Network will host a conference call to discuss third quarter 2012 results today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number is (866) 788-0546 for domestic participants and (857) 350-1684 for international participants. A live webcast of the conference call will also be available and can be accessed within the investor relations section of the ACTIVE Network corporate website at: http://investors.ACTIVEnetwork.com.
A replay of the call will be available starting at 7:00 p.m. Eastern Time (4:00 p.m. Pacific Time) on November 1, 2012 through 11:59 p.m. Eastern Time (8:59 p.m. Pacific Time) on November 8, 2012. To listen to the replay, dial (888) 286-8010 or (617) 801-6888 outside of the United States and use the passcode 83008684. The replay will also be available via webcast at: http://investors.activenetwork.com/.
About ACTIVE Network
ACTIVE Network (NYSE: ACTV) is on a mission to make the world a more active place. With deep expertise in Activity and Participant Management™ (APM), our ACTIVE Works® cloud technology helps organizations transform and grow their businesses. We do this through technology solutions that power the world’s activities and through online destinations such as ACTIVE.com® that connect people with the things they love to do. Serving over 50,000 global business customers and driving over 80 million transactions annually, we help organizations get participants, manage their events and build communities. ACTIVE Network is headquartered in San Diego, California and has over 30 offices worldwide. Learn more at ACTIVENetwork.com or ACTIVE.com and engage with us on Twitter @ACTIVEnetwork, @ACTIVE and on Facebook.
Note With Respect to Non-GAAP Financial Measures
In addition to using GAAP financial results, the Company's management measures and reports non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share. The most directly comparable GAAP financial results for these non-GAAP financial measures are Net income (loss), Net income (loss) and Net income (loss) per share, respectively. Management uses these non-GAAP financial measures to evaluate the Company's performance and operations. Management also uses these non-GAAP financial measures for business planning, to evaluate acquisition opportunities and as a measurement to create incentives and to compensate the Company's management team. In addition, management believes the exclusion or inclusion of certain amounts in calculating these non-GAAP financial measures can provide a useful measure to investors for period-to-period comparisons. These non-GAAP financial measures, however, should be used in addition to, and in conjunction with, the Company's financial results presented in accordance with GAAP. The Company strongly encourages investors to review its financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare the Company's results with other companies' non-GAAP financial measures having the same or similar names. Please see Reconciliation of GAAP to Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP financial measures.
The Active Network, Inc. cautions you that the statements included in this press release that are not a description of historical facts are forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to substantial risks and uncertainties, including the Company's ability to generate revenue and control expenses in order to achieve and maintain profitability, the Company's ability to maintain an adequate rate of growth, including growing its registrations and revenue from registrations, and the Company's ability to successfully manage its acquisitions and investments in businesses, applications and technologies, as well as the other risks detailed from time to time in the reports it files with the Securities and Exchange Commission. As a result of these risks and uncertainties, the Company's actual results may differ materially from those expressed in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.
© 2012 The Active Network, Inc. All rights reserved. Active.com and Active Works are registered trademarks of The Active Network, Inc. Active Network and Activity and Participant Management is a trademark of The Active Network, Inc. All other trademarks are the property of their respective owners.