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Active Network Reports First Quarter 2012 Results

• First Quarter Revenue Increases 30% Year-Over-Year to $94.4 Million
• Number of Registrations Increased 23% Year-Over-Year to 18.2 Million
• Company Reiterates Full Year 2012 Guidance

SAN DIEGO, CALIF. – May 3, 2012 – Active Network (NYSE: ACTV), the leader in cloud-based activity and participant management™ solutions, today announced its financial results for the first quarter of 2012.

Q1 2012 Financial Highlights:

(All comparisons are made to the first quarter of 2011)

• Total net revenue was $94.4 million, up 30% from $72.7 million.
• Technology revenue constituted 89%, or $84.1 million of total net revenue, up 33% from $63.1 million.
• Marketing Services revenue constituted 11%, or $10.3 million of total net revenue.
• Loss from operations was $21.0 million compared to a loss of $8.8 million.
• Net loss was $20.3 million compared to a net loss of $10.9 million.
• Adjusted EBITDA, a non-GAAP financial measure, was negative $3.0 million. Excluding the impact of business combination accounting rules related to deferred revenue, Adjusted EBITDA was $1.6 million.

"Our first quarter was a fantastic start to 2012, with record revenue up 30% over the prior year period, as we continued to execute on our strategy to expand our customer base, drive innovation in our ActiveWorks® technology platform and penetrate new markets,” said Dave Alberga, CEO of Active Network. “StarCite® is proving to complement our existing event technology and has helped attract new customers and strengthen our position as the leading SaaS technology provider for professional events. During the quarter, we orchestrated a record-breaking Marine Corps Marathon rush event which processed over 30,000 registrations - demonstrating the strength and deep functionality of the ActiveWorks platform. We also renewed numerous strategic partnerships including Cisco GSX and Schwab, and added new customers including the State of New Jersey Department of Environment Protection, City of Bellingham, WA, City of Wassau, WI and the Harlem Globetrotters - emphasizing the diversity of our solutions and expansion into adjacent markets.”

"We delivered a strong quarter – exceeding both our top and bottom line expectations," explained Scott Mendel, CFO of Active Network. “As a result of our SaaS model and long-term exclusive customer contracts we have recurring revenue with a high degree of predictability. In the first quarter, registrations, one of our key drivers, accelerated over 23% from the prior year period, reflecting the strength across all verticals, including strong performance by our hunting and fishing customers.”

Q1 2012 Key Business Highlights

• The Company partnered with the City of San Diego to manage its parks and recreation assets and to handle everything from facility reservations, park permitting, payment processing and e-commerce operations making it easier for San Diegans to get active in their community.
• The Company worked with the North Carolina Division of Parks and Recreation to help them successfully launch their online camping reservations system. This online reservation system will allow customers to view photos of parks and sites, check availability, and make reservations at more than 3,000 sites in 29 North Carolina State Parks.
Kevin Biggs was appointed as Executive Vice President of Global Technology Sales to lead the sales organization spanning across North America, Europe and Asia-Pacific.

Business Outlook

For the second quarter of 2012, Active Network is targeting total revenue to be in the range of $117 million to $121 million. Registrations are expected to grow approximately 11% to 13% and revenue per registration growth of approximately 3% to 5% compared to the same period in the prior year. The Company expects Adjusted EBITDA in the range of $19 million to $21 million. Excluding the impact of business combination accounting rules, Adjusted EBITDA is expected to be in the range of $23 million to $25 million. The Company expects a net (loss)/income of $(3) million to $1 million.

The Company reiterates full year 2012 guidance of total revenue in the range of $425 million to $435 million and Adjusted EBITDA in the range of $46 million to $50 million. Excluding the impact of business combination accounting rules, Adjusted EBITDA is expected to be in the range of $58.5 million to $62.5 million. The Company now expects net loss in the range of $39 million to $30 million.

Conference Call Information

Active Network will host a conference call to discuss first quarter 2012 results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The conference call dial-in number is (800) 901-5259 for domestic participants and (617) 786-4514 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 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time) on May 3, 2012 through 11:59 p.m. Eastern Time (8:59 p.m. Pacific Time) on May 7, 2012. To listen to the replay, dial (888) 286-8010 or (617) 801-6888 outside of the United States and use the passcode 6499-6238. 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™, our ActiveWorks® 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.

Forward-Looking Statements

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.

THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2012 2011
Net Revenue:
Technology revenue $ 84,120 $ 63,108
Marketing services revenue 10,318 9,604
Total net revenue 94,438 72,712
Cost of net revenue:
Cost of technology revenue 45,655 32,988
Cost of marketing services revenue 1,316 1,162
Total cost of net revenue 46,971 34,150
Gross profit 47,467 38,562
Operating expenses:
Sales and marketing 25,024 16,940
Research and development 21,209 16,176
General and administrative 16,544 10,588
Amortization of intangibles 5,692 3,703
Total operating expenses 68,469 47,407
Loss from operations (21,002 ) (8,845 )
Interest income 25 30
Interest expense (151 ) (1,284 )
Other income (expense), net 1,401 (51 )
Loss before provision for income taxes (19,727 ) (10,150 )
Provision for income taxes 611 792
Net loss (20,338 ) (10,942 )
Accretion of redeemable convertible preferred stock - (7,410 )
Net loss attributable to common stockholders $ (20,338 ) $ (18,352 )
Net loss per share attributable to common stockholders:
Basic and diluted $ (0.36 ) $ (2.16 )

Weighted-average shares used to compute net loss per share attributable to common stockholders:

Basic and diluted 56,982 8,514
THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

March 31,

December 31,
2012 2011
Assets
Current assets:
Cash and cash equivalents $ 95,014 $ 108,699
Restricted cash 1,502 1,502
Accounts receivable, net 85,154 66,469
Inventories 3,080 1,662
Prepaid expenses and other current assets 7,288 6,179
Total current assets 192,038 184,511
Property and equipment, net 34,416 33,830
Software development costs, net 46,816 45,093
Goodwill 243,797 243,320
Intangible assets, net 83,489 90,340
Deposits and other assets 1,971 2,133
Total assets $ 602,527 $ 599,227
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable

$

8,293

$

8,516
Registration fees payable 110,174 72,405
Accrued expenses 42,775 41,106
Deferred revenue 66,270 54,919
Current portion of debt 10,000 5,000
Capital lease obligations, current portion 2,385 3,317
Other current liabilities 4,113 42,613

Total current liabilities

244,010 227,876
Capital lease obligations, net of current portion 1,023 1,652
Other long-term liabilities 5,862 6,147
Deferred tax liability 17,608 16,913
Total liabilities 268,503 252,588
Stockholders’ equity:
Common stock 60 58
Treasury stock (11,959 ) (11,959 )
Additional paid-in capital 632,710 625,875
Accumulated other comprehensive income 8,809 7,923
Accumulated deficit (295,596 ) (275,258 )
Total stockholders’ equity 334,024 346,639
Total liabilities and stockholders’ equity $ 602,527 $ 599,227
THE ACTIVE NETWORK, INC.
SUPPLEMENTARY DATA
(In thousands, except revenue per registration)
(Unaudited)
Operational Data:
Three Months Ended
March 31, %
2012 2011 change
Net registration revenue $ 63,519 $ 51,433 23%
Registrations 18,223 14,859 23%
Net registration revenue per registration $ 3.49 $ 3.46 1%
Gross Profit Margin:
Three Months Ended % or
March 31, bps
2012 2011 change
Total net revenue $ 94,438 $ 72,712 30%

Add back: impact of business combination accounting rules

4,616 333
Non-GAAP Total net revenue 99,054 73,045 36%
GAAP gross profit 47,467 38,562
Add back: stock-based compensation 60 16
Add back: depreciation & amortization 7,718 5,355

Add back: impact of business combination accounting rules

4,616 333
Non-GAAP gross profit 59,861 44,266 35%
Gross profit margin:
GAAP gross profit margin 50.3 % 53.0 % (270) bps
Non-GAAP gross profit margin 60.4 % 60.6 % (20) bps
Stock-based compensation: Three Months Ended
March 31,
2012 2011
Cost of net revenue $ 60 $ 16
Sales and marketing 696 187
Research and development 452 118
General and administrative 1,821 423
Total $ 3,029 $ 744
THE ACTIVE NETWORK, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
2012 2011
Non-GAAP net loss:
GAAP net loss $ (20,338 ) $ (10,942 )
Add back: stock-based compensation 3,029 744
Add back: amortization of intangibles 7,157 5,096

Add back: impact of business combination accounting rules

4,616 333
Income tax effect (5,181 ) (2,161 )
Non-GAAP net loss $ (10,717 ) $ (6,930 )
Non-GAAP net loss per share:
Non-GAAP net loss $ (10,717 ) $ (6,930 )
GAAP shares - basic and diluted 56,982 8,514
Add: preferred stock conversion - 34,632
Non-GAAP shares - basic and diluted 56,982 43,146
Non-GAAP net loss per share - basic and diluted $ (0.19 ) $ (0.16 )
Three Months Ended
March 31,
2012 2011
Adjusted EBITDA:
Net loss $ (20,338 ) $ (10,942 )
Interest expense, net 126 1,254
Provision for income taxes 611 792
Depreciation & amortization 14,976 10,671
Stock-based compensation 3,029 744
Other expense (income), net (1,401 ) 51
Adjusted EBITDA $ (2,997 ) $ 2,570

Impact of business combination accounting rules

4,616 333

Adjusted EBITDA excluding the impact of business combination accounting rules

$ 1,619 $ 2,903
THE ACTIVE NETWORK, INC.
FUTURE PERFORMANCE - 2ND QUARTER AND FULL YEAR 2012 OUTLOOK
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands)
Estimated Estimated
2nd Quarter 2012 Full Year 2012
Low End High End Low End High End
Net loss

$

(3,000

)

$ 1,000 $ (39,000 ) $ (30,000 )
Interest, taxes & other 1,000 1,000 3,000 2,000
Depreciation & amortization 16,000 15,000 62,000 60,000
Stock-based compensation 5,000 4,000 20,000 18,000
Adjusted EBITDA $ 19,000 $ 21,000 $ 46,000 $ 50,000

Impact of business combination accounting rules

4,000 4,000 12,500 12,500

Adjusted EBITDA excluding the impact of business combination accounting rules

$ 23,000 $ 25,000 $ 58,500 $ 62,500

###

© 2012 The Active Network, Inc. All rights reserved. Active.com, ActiveWorks and StarCite are registered trademarks of The Active Network, Inc. Active Network is a trademark of The Active Network, Inc. All other trademarks are the property of their respective owners.

Media Contact:

Mona Klausing, Active Network
Mona.Klausing@ActiveNetwork.com
1-858-964-3813

Investor Contact:

Brinlea Johnson, The Blueshirt Group
Brinlea@BlueshirtGroup.com
1-212-331-8424

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