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ACTIVE Network Reports Fourth Quarter and Fiscal Year 2012 Financial Results

  • Fourth Quarter Revenue Increases 23% to $93.7 Million
  • 2012 Revenue Increases 24% to $418.9 Million
  • 2012 Registrations Up 12% and Revenue Per Registration Up 8%
  • Reaffirming Full Year 2013 Guidance

SAN DIEGO, CALIF. – February 14, 2013 – ACTIVE Network (NYSE: ACTV), the leader in cloud-based Activity and Participant Management™ (APM) solutions, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2012.   

 
Q4 2012 Financial Highlights:
(All comparisons are made to the fourth quarter of 2011)

  • Total net revenue up 23% to $93.7 million.
  • Technology revenue increased 25% and constituted 88%, or $82.0 million, of total net revenue.
  • Net registration revenue increased 20% to $55.8 million with the number of registrations up 7% and the revenue per registration up 13%.
  • Marketing services revenue constituted 12%, or $11.6 million, of total net revenue.
  • Net loss was $14.3 million compared to a net loss of $8.5 million.
  • Adjusted EBITDA, a non-GAAP financial measure, was $5.9 million up from $0.4 million in 2011 (Adjusted EBITDA in 2011 included $1.9 million of severance costs associated with the acquisition of StarCite).

Fiscal Year 2012 Financial Highlights:
(All comparisons are made to fiscal year 2011)

  • Total net revenue up 24% to $418.9 million.
  • Technology revenue increased 28% and constituted 88%, or $370.5 million, of total net revenue.
  • Net registration revenue increased 21% to $275.8 million with the number of registrations up 12% and the revenue per registration up 8%.
  • Approximately 55,000 organizations utilized the Company’s technology solutions, up 7%.
  • Marketing services revenue constituted 12%, or $48.4 million, of total net revenue.
  • Net loss was $43.0 million compared to a net loss of $27.1 million.
  • Adjusted EBITDA, a non-GAAP financial measure, was $38.4 million. Excluding the impact of business combination accounting rules related to deferred revenue, Adjusted EBITDA was $50.8 million.

“In 2012, we achieved the key technology milestones we established at the beginning of the year.  Our first Hunting and Fishing customer went live on our ActiveWorks® platform, we made strong progress in transitioning our Endurance customers onto ActiveWorks®, and we delivered on our data center consolidation targets.  We continue to drive innovation and adoption of our horizontal ActiveWorks® platform,” commented Executive Chairman of ACTIVE Network, Dave Alberga

“We delivered 23% revenue growth in the fourth quarter and 24% for the full year 2012,” added Matt Landa, CEO of ACTIVE Network.  “In the fourth quarter, our cross-selling efforts gained momentum as we brought in a number of Fortune 500 customers that now use our combined Strategic Meetings Management and Conference solution.  We generated positive operating cash flow of $27 million and ended the year with a strong balance sheet.  As we enter 2013, I am excited about our leading market position and our ability to capitalize on new opportunities.  During the year, we will continue to make targeted investments in our sales capabilities to drive increased adoption of our APM technology.”   

Q4 2012 Key Business Highlights

  • Marquee customer highlights included wins from City of Santa Monica, San Antonio YMCA, and Sun Valley Resort and strong technology successes with Loews Hotels and Nestlè.
  • ACTIVE launched Registration Protector in partnership with Allianz Global to protect registration fees for both event organizers and participants when participants can’t show up on race day.
  • ACTIVE Access, a new enhanced developer center, brought together all aspects of ACTIVE Network's distribution offerings in a single, user-friendly site, developer.active.com.
  • Internationally, ACTIVE expanded its footprint announcing that it has become the exclusive technology partner for RUN Ireland, the largest source for running events in that region.
  • We extended our ActiveWorks Endurance platform to Australia in October and are experiencing strong initial adoption.

Financial Outlook
First Quarter 2013 - For the first quarter of 2013, ACTIVE Network expects total revenue to be in the range of $102 million to $107 million. Registrations are expected to grow approximately 2% to 7% and revenue per registration is expected to grow approximately 7% to 9% compared to the same period in the prior year. The Company expects Adjusted EBITDA in the range of $2 million to $5 million. The Company expects a net loss of $21 million to $17 million.  
Full Year 2013 - Active Network reiterated 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.

“Our fourth quarter results were in-line with our guidance -  as registrations, one of our main drivers, accelerated 7% and revenue per registration grew 13% from the prior year period,” said Scott Mendel, CFO of ACTIVE Network. “During 2012, approximately 55,000 organizations used our technology solutions to manage their events and activities, up 7% over 2011.”

Conference Call Information
ACTIVE Network will host a conference call to discuss fourth quarter and fiscal year 2012 results today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number is (800) 573-4840 for domestic participants and (617) 224-4326 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 6:30 p.m. Eastern Time (3:30 p.m. Pacific Time) on February 14, 2013 through 11:59 p.m. Eastern Time (8:59 p.m. Pacific Time) on February 21, 2013. To listen to the replay, dial (888) 286-8010 or (617) 801-6888 outside of the United States and use the passcode 38594946. 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, as well as 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.
                                                                    ###

© 2013 The Active Network, Inc. All rights reserved. ACTIVE.com, ACTIVE Works 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:                                           
Megan Lavine, ACTIVE Network               
PR@ACTIVEnetwork.com                          
1-858-652-6133                                            

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

Allise Furlani, The Blueshirt Group         
Allise@BlueshirtGroup.com
1-212-331-8433

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