Medallia Reports Record Fourth Quarter Fiscal 2021 Revenue

Rhea-AI Summary

Medallia Inc. (NYSE: MDLA) reported Q4 and full-year results for fiscal 2021. The company achieved quarterly revenue of $128 million, a 16% increase year-over-year, with subscription revenue hitting $103.8 million, up 20%. Despite these gains, the net loss for Q4 was $48.8 million, worsening from a loss of $31.9 million last year. For fiscal 2021, total revenue rose 19% to $477.2 million, but the annual net loss increased to $148.7 million. Looking ahead, Medallia expects Q1 FY 2022 subscription revenue between $103-$104 million, with guidance of 16%-17% growth.

Positive

• Quarterly subscription revenue exceeded $100 million.
• Total annual revenue run rate surpassed $500 million.
• Total revenue for the fiscal year 2021 increased 19% to $477.2 million.
• Subscription revenue for FY 2021 rose 23% to $382.6 million.
• Non-GAAP income from operations improved to $8.6 million for FY 2021.

Negative

• Net loss for Q4 was $48.8 million, increasing from $31.9 million last year.
• Annual net loss for FY 2021 was $148.7 million, worsening from a loss of $112.3 million.

Medallia Inc. (NYSE: MDLA), the global leader in experience management, today announced financial results for the quarter and year ended January 31, 2021.

“During Q4, we achieved important milestones with quarterly subscription revenue exceeding $100 million and total annual revenue run rate exceeding the $500 million mark,” said Leslie Stretch, President and CEO of Medallia. “We are out-innovating competitors and continue to invest in global sales coverage and product development. Markets are being disrupted by exponential forces putting customers and employees at the center of digital transformation. Medallia is the only platform that makes all other applications customer and employee aware, transforming value for partners, customers, citizens, patients and employees.”

Financial Highlights for the Fourth Quarter of Fiscal 2021

• Total revenue for the quarter was $128.0 million, an increase of 16% from the same period last year. Subscription revenue was $103.8 million, an increase of 20% from the same period last year.
• Loss from operations for the quarter was $41.2 million, compared to loss from operations of $32.8 million in the same period last year. Non-GAAP income from operations for the fourth quarter was $549,000, compared to $3,000 in the same period last year.
• Net loss for the quarter was $48.8 million, or $(0.32) per share, basic and diluted, compared to net loss of $31.9 million, or $(0.25) per share, basic and diluted, in the same period last year. Non-GAAP net loss was $1.4 million, or $(0.01) per share, basic and diluted, compared to non-GAAP net income of $491,000, or $0.00 per share, basic and diluted, in the same period last year.
• Cash, cash equivalents and marketable securities were $682.4 million as of January 31, 2021.

Financial Highlights for the Full Fiscal Year 2021

• Total revenue for fiscal year 2021 was $477.2 million, an increase of 19% from the prior year. Subscription revenue was $382.6 million, an increase of 23% from the prior year.
• Loss from operations for the fiscal year 2021 was $138.0 million, compared to loss from operations of $114.9 million in fiscal year 2020. Non-GAAP income from operations for the fiscal year 2021 was $8.6 million, compared to a loss of $2.4 million in the same period last year.
• Net loss for the fiscal year 2021 was $148.7 million, or $(1.03) per share, basic and diluted, compared to net loss of $112.3 million, or $(1.35) per share, basic and diluted, in the same period last year. Non-GAAP net income was $3.9 million, or $0.02 per share, diluted, compared to non-GAAP net loss of $1.6 million, or $(0.02) per share, basic and diluted, in the prior year.

For information regarding the non-GAAP financial measures discussed in this press release, please see the section titled “Non-GAAP Financial Measures.” Reconciliations between GAAP and non-GAAP financial measures are provided in the tables of this press release.

Recent Company Highlights

• Announced recent wins with customers, including: A&W Canada, Aimbridge Hospitality, ARC Europe Group, Avast, Dave & Buster’s, Federal Student Aid, Focus Brands, Huhtamäki Oyj, Office Depot Mexico, Nebraska's Emergency Management Agency, OXXO, Reachdesk, Saks Fifth Avenue, Salvatore Ferragamo, Volvo Cars and Y-12 Federal Credit Union.
• Acquired Decibel, a leader in digital experience analytics.
• Fastest growing ISV within Salesforce’s ecosystem.
• ServiceNow named Medallia application developer partner of the year.
• Acknowledged by Adobe as the fastest growing and most widely engaged tech partner in Adobe’s revenue sharing program.
• Medallia for Microsoft Dynamics 365 is now live on Microsoft’s AppSource.
• Signed IBM as a new go-to-market partner.
• Achieved HIPAA compliance for LivingLens video feedback.
• Announced an integration with Slack to revolutionize employee engagement and collaboration.

Financial Outlook

Medallia is providing the following guidance for the first quarter ending April 30, 2021 and for the full year ending January 31, 2022 (stated in millions, except percentages):

		Q1 of FY 2022 ending April 30, 2021		FY 2022 ending January 31, 2022
Subscription revenue		$103.0 to $104.0		$465.0 to $469.0
Subscription revenue growth YoY		16% to 17%		22% to 23%
Total revenue		$126.0 to $128.0		$563.0 to $567.0
Total revenue growth YoY		12% to 14%		18% to 19%
GAAP loss from operations		$(54.0) to $(45.5)		$(204.0) to $(181.0)
Non-GAAP loss from operations		$(12.0) to $(11.0)		$(22.0) to $(20.0)

Conference Call

Medallia will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss the fourth quarter and fiscal 2021 results and outlook for the first quarter and full fiscal year 2022. The conference call will be available via live webcast and replay at the Investor Relations section of Medallia’s website: https://investor.medallia.com/events-and-presentations/default.aspx.

About Medallia

Medallia (NYSE: MDLA) is the pioneer and market leader in customer, employee, citizen and patient experience. The company’s award-winning SaaS platform, Medallia Experience Cloud, is becoming the experience system of record that makes all other applications customer and employee aware. The platform captures billions of experience signals across interactions including all voice, video, digital, IOT, social media and corporate messaging tools. Medallia uses proprietary artificial intelligence and machine learning technology to automatically reveal predictive insights that drive powerful business actions and outcomes. Medallia customers reduce churn, turn detractors into promoters and buyers, create in-the-moment cross-sell and up-sell opportunities and drive revenue-impacting business decisions, providing clear and potent returns on investment. For more information visit www.medallia.com.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit and gross margin, non-GAAP subscription revenue gross profit and gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss) and weighted average basic and diluted shares. Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes they are useful to investors, as a supplement to the corresponding GAAP financial measures, in evaluating our ongoing operational performance and trends and in comparing our financial measures with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. In addition, other companies may utilize metrics that are not similar to ours.

The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results. Management encourages investors and others to review Medallia’s financial information in its entirety and not rely on a single financial measure.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.

Employer payroll tax expense related to stock-based compensation. We exclude cash expenses for employer payroll taxes related to stock-based compensation, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of exercise or vesting, which may vary from period to period independent of the operating performance of our business.

Amortization of acquired intangible assets. We exclude amortization of acquired intangible assets, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of intangible assets are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

Acquisition-related costs. We exclude costs related to acquisitions from our non-GAAP financial measures. These costs include transaction and integration related costs associated with acquisition activities.

Restructuring and other. We exclude restructuring and other from certain of our non-GAAP financial measures. Restructuring and other primarily consists of lease impairments and related implications from the adoption of Accounting Standards Codification Topic 842.

Amortization of debt discount and issuance costs. We exclude costs related to the amortization of debt discount together with the issuance costs of the debt from certain of our non-GAAP financial measures. Under GAAP, we are required to separately account for liability (debt) and equity (conversion option) components of the convertible senior notes that were issued in a private placement in September 2020 and recognize the effective interest expense on our convertible senior notes and amortize the issuance costs over the term of these notes. The expense for the amortization of debt discount and debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Income tax benefits. We exclude tax benefits related to acquisitions from our non-GAAP financial measures. These tax benefits realized consist of the change in the valuation allowance resulting from acquisitions. In addition, we exclude tax benefits related to our stock option exercise deductions and certain discrete and one-time events.

Non-GAAP Supplemental Financial Information

Subscription billings: We define subscription billings, a non-GAAP financial measure, as total subscription revenue plus the change in subscription deferred revenue and contract assets, excluding acquired contract assets.

Note on Forward-Looking Statements

The forward-looking statements included in this press release and in the accompanying conference call, including for example, the quotations of management, the statements under the heading “Financial Outlook” above, the information provided in the “Financial Outlook” section of the tables below, strategies, discussion of our commercial prospects, partnerships, estimates of future revenues, operating income/loss and expenses, stock-based compensation expense and related employer payroll tax expense, amortization of acquired intangible assets, acquisitions and acquisition-related costs, restructuring and other expenses, amortization of debt discount and issuance costs and income tax benefits, reflect management’s best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions including from an economic downturn or recession in the United States or in other countries around the world, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, including as a result of the COVID-19 pandemic and related public health measures, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, developments in and the duration of the COVID-19 pandemic and the resulting impact on our business and operations, and the business of our customers and partners, including the economic impact of safety measures to mitigate the impacts of COVID-19, our potential inability to manage effectively any growth we experience, our ability or inability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in registration statements and periodic reports we filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed with the SEC on March 19, 2020 and our Quarterly Report on Form 10-Q filed with the SEC on December 9, 2020, which may be obtained on the Investor Relations section of Medallia’s website (https://investor.medallia.com/financials/sec-filings/default.aspx). Additionally, these forward-looking statements involve risk, uncertainties, and assumptions, including those related to the impacts of COVID-19 on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and are changing rapidly, including, but not limited to, the timeframes for and severity of social distancing and other mitigation requirements, the impact of COVID-19 on our customers’ purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by COVID-19. Significant variation from the assumptions underlying our forward-looking statements could cause our actual results to vary, and the impact could be significant. All forward-looking statements in this press release are based on information available to us as of the date hereof. We undertake no obligation, and do not intend, to update the information contained in this press release or the accompanying conference call, except as required by law.

© 2021 Medallia, Inc. All rights reserved. Medallia®, the Medallia logo, and the names and marks associated with Medallia’s products are trademarks of Medallia. All other trademarks are the property of their respective owners.

Medallia, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
		January 31, 2021				January 31, 2020
Assets
Current assets:
Cash and cash equivalents		$	428,328			$	226,866
Marketable securities		254,061				116,833
Trade and other receivables, net		181,431				150,661
Deferred commissions, current		31,107				22,455
Prepaid expenses and other current assets		23,835				22,492
Total current assets		918,762				539,307
Property and equipment, net		40,668				34,879
Operating lease right-of-use assets (1)		39,050				—
Deferred commissions, noncurrent		68,929				51,540
Goodwill		262,942				79,324
Intangible assets, net		60,623				21,306
Other noncurrent assets		10,675				5,293
Total assets		$	1,401,649			$	731,649
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	11,904			$	3,608
Accrued expenses and other current liabilities		39,756				20,268
Accrued compensation		42,292				37,160
Deferred revenue, current		293,231				263,115
Total current liabilities		387,183				324,151
Convertible senior notes, net		448,064				—
Deferred revenue, noncurrent		1,396				1,407
Lease liability, noncurrent (1)		47,631				—
Other liabilities		9,134				8,295
Total liabilities		893,408				333,853
Stockholders' equity:
Common stock		150				132
Additional paid-in capital		1,136,534				878,843
Accumulated other comprehensive loss		1,186				(206		)
Accumulated deficit		(629,629		)		(480,973		)
Total stockholders' equity		508,241				397,796
Total liabilities and stockholders' equity		$	1,401,649			$	731,649
(1) In the fourth quarter of fiscal year 2021, we adopted Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2020 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption.

Medallia, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
		Three Months Ended January 31,								Twelve Months Ended January 31,
		2021				2020				2021				2020
Revenue:
Subscription		$	103,814			$	86,160			$	382,573			$	312,168
Professional services		24,233				23,940				94,648				90,295
Total revenue		128,047				110,100				477,221				402,463
Cost of revenue:
Subscription		22,837				16,913				80,376				61,369
Professional services		23,264				22,203				90,308				83,820
Total cost of revenue		46,101				39,116				170,684				145,189
Gross profit		81,946				70,984				306,537				257,274
Operating expenses:
Research and development		29,597				27,348				117,800				95,978
Sales and marketing		63,124				53,559				225,414				180,711
General and administrative		30,428				22,843				101,351				95,515
Total operating expenses		123,149				103,750				444,565				372,204
Loss from operations		(41,203		)		(32,766		)		(138,028		)		(114,930		)
Other income (expense), net		(7,030		)		555				(10,550		)		3,129
Loss before provision for (benefits from) income taxes		(48,233		)		(32,211		)		(148,578		)		(111,801		)
Provision for (benefits from) income taxes		537				(341		)		78				532
Net loss		$	(48,770	)		$	(31,870	)		$	(148,656	)		$	(112,333	)
Net loss per share attributable to common stockholders, basic and diluted		$	(0.32	)		$	(0.25	)		$	(1.03	)		$	(1.35	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		151,663				129,365				144,563				83,269

GAAP to Non-GAAP Reconciliations

GAAP to Non-GAAP adjustments include stock-based compensation expense and related employer payroll tax expense, amortization of acquired intangible assets, acquisition-related costs, restructuring and other, amortization of debt discount and issuance costs and income tax benefits as follows:

		Three Months Ended January 31,								Twelve Months Ended January 31,
		2021				2020				2021				2020
Cost of revenue:
Subscription		$	3,146			$	1,834			$	10,264			$	4,933
Professional services		2,475				2,876				10,819				8,943
Operating expenses:
Research and development		5,610				6,889				28,176				18,422
Sales and marketing		11,700				10,251				44,225				29,327
General and administrative		18,820				10,919				53,182				50,922
Other income (expense), net		5,979				—				8,741				—
Income tax benefits		(336		)		(408		)		(2,894		)		(1,783		)
Total		$	47,394			$	32,361			$	152,513			$	110,764

Medallia, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
		Twelve Months Ended January 31,
		2021				2020
Operating activities
Net loss		$	(148,656	)		$	(112,333	)
Adjustments to reconcile net loss to net cash (provided by) used in operating activities:
Depreciation and amortization			29,047				15,611
Amortization of deferred commissions			26,761				19,030
Non-cash lease expense (1)			11,827				—
Stock-based compensation expense			104,805				109,456
Gain on property and equipment, and lease termination			—				(13,783	)
Lease exit costs			16,838				—
Amortization of debt discount and issuance costs			8,742				—
Other			1,832				(698	)
Changes in assets and liabilities:
Trade and other receivables			(30,391	)			(43,268	)
Deferred commissions			(52,802	)			(41,424	)
Prepaid expenses and other current assets			1,666				(6,198	)
Other noncurrent assets			(1,864	)			(252	)
Accounts payable			5,579				2,097
Deferred revenue			24,665				49,749
Accrued expenses and other current liabilities			6,973				20,282
Other noncurrent liabilities			(3,370	)			137
Net cash provided by (used in) operating activities			1,652				(1,594	)
Investing activities
Purchases of property, equipment and other			(20,822	)			(22,009	)
Purchase of marketable securities			(394,774	)			(182,389	)
Maturities of marketable securities			256,233				65,853
Proceeds from sale of marketable securities			1,100				511
Acquisitions, net of cash acquired			(223,647	)			(76,532	)
Other			—				(1,500	)
Net cash used in investing activities			(381,910	)			(216,066	)
Financing activities
Proceeds from issuance of convertible senior notes, net of issuance costs			558,237				—
Purchase of capped calls related to convertible senior notes			(61,870	)			—
Proceeds from initial public offering net of issuance costs, underwriters discounts and commissions, and concurrent private placement			—				319,572
Proceeds from Series F convertible preferred stock, net of issuance costs			—				69,848
Proceeds from revolving line of credit			43,000				—
Repayment of revolving line of credit			(43,000	)			—
Proceeds from exercise of stock options			78,595				34,009
Payments for employee taxes withheld upon vesting of restricted stock units			—				(17,907	)
Proceeds from share purchase plan			17,828				—
Principal payments on financing leases			(4,937	)			(3,540	)
Repayment of debt assumed in acquisitions and other			(6,445	)			(2,297	)
Net cash provided by financing activities			581,408				399,685
Effect of exchange rate changes on cash and cash equivalents			312				(35	)
Net increase in cash and cash equivalents			201,462				181,990
Cash and cash equivalents at beginning of period			226,866				44,876
Cash and cash equivalents at end of period		$	428,328			$	226,866
(1) In the fourth quarter of fiscal year 2021, we adopted Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2020 and elected the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption.

Medallia, Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
		Three Months Ended January 31,										Twelve Months Ended January 31,
		2021					2020					2021					2020
Non-GAAP gross profit reconciliation:
GAAP gross profit		$	81,946				$	70,984				$	306,537				$	257,274
GAAP gross margin		64			%		64			%		64			%		64			%
Add:
Stock-based compensation		3,237					3,823					13,916					11,882
Employer payroll tax expense related to stock-based compensation		268					7					825					119
Amortization of acquired intangible assets		2,116					880					6,342					1,875
Non-GAAP gross profit		$	87,567				$	75,694				$	327,620				$	271,150
Non-GAAP gross margin		68			%		69			%		69			%		67			%

		Three Months Ended January 31,										Twelve Months Ended January 31,
		2021					2020					2021					2020
Non-GAAP subscription revenue gross profit reconciliation:
GAAP subscription revenue gross profit		$	80,977				$	69,247				$	302,197				$	250,799
GAAP subscription revenue gross margin		78			%		80			%		79			%		80			%
Add:
Stock-based compensation		925					954					3,650					3,058
Employer payroll tax expense related to stock-based compensation		105					—					272					—
Amortization of acquired intangible assets		2,116					880					6,342					1,875
Non-GAAP subscription revenue gross profit		$	84,123				$	71,081				$	312,461				$	255,732
Non-GAAP subscription revenue gross margin		81			%		82			%		82			%		82			%

Medallia, Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
		Three Months Ended January 31,										Twelve Months Ended January 31,
		2021					2020					2021					2020
Non-GAAP operating expenses reconciliation:
GAAP operating expenses		$	123,149				$	103,750				$	444,565				$	372,204
GAAP operating expenses, as a % of total revenue		96			%		94			%		93			%		92			%
Add (subtract):
Stock-based compensation		(20,115			)		(25,336			)		(90,889			)		(97,574			)
Employer payroll tax expense related to stock-based compensation		(2,599			)		(823			)		(7,628			)		(1,369			)
Amortization of acquired intangible assets		(1,893			)		(326			)		(4,378			)		(441			)
Acquisition-related costs		(347			)		(1,027			)		(3,391			)		(2,793			)
Restructuring and other		(11,177			)		(547			)		(19,298			)		3,506
Non-GAAP operating expenses		$	87,018				$	75,691				$	318,981				$	273,533
Non-GAAP operating expenses, as a % of total revenue		68			%		69			%		67			%		68			%

		Three Months Ended January 31,										Twelve Months Ended January 31,
		2021					2020					2021					2020
Non-GAAP income (loss) from operations reconciliation:
GAAP loss from operations		$	(41,203		)		$	(32,766		)		$	(138,028		)		$	(114,930		)
GAAP loss from operations, as a % of total revenue		(32			)%		(30			)%		(29			)%		(29			)%
Add (subtract):
Stock-based compensation		23,352					29,159					104,805					109,456
Employer payroll tax expense related to stock-based compensation		2,867					830					8,453					1,488
Amortization of acquired intangible assets		4,009					1,206					10,719					2,316
Acquisition-related costs		347					1,027					3,391					2,793
Restructuring and other		11,177					547					19,298					(3,506			)
Non-GAAP income (loss) from operations		$	549				$	3				$	8,638				$	(2,383		)
Non-GAAP income (loss) from operations, as a % of total revenue		—			%		—			%		2			%		(1			)%

Medallia, Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
		Three Months Ended January 31,										Twelve Months Ended January 31,
		2021					2020					2021					2020
Non-GAAP net loss reconciliation:
GAAP net loss		$	(48,770		)		$	(31,870		)		$	(148,656		)		$	(112,333		)
GAAP net loss as a % of total revenue		(38			)%		(29			)%		(31			)%		(28			)%
Add (subtract):
Stock-based compensation		23,352					29,159					104,805					109,456
Employer payroll tax expense related to stock-based compensation		2,867					830					8,453					1,488
Amortization of acquired intangible assets		4,009					1,206					10,719					2,316
Acquisition-related costs		347					1,027					3,391					2,793
Restructuring and other		11,177					547					19,298					(3,506			)
Amortization of debt discount and issuance costs		5,979					—					8,741					—
Income tax benefits		(336			)		(408			)		(2,894			)		(1,783			)
Non-GAAP net income (loss)		$	(1,375		)		$	491				$	3,857				$	(1,569		)
Non-GAAP net income (loss) as a % of total revenue		(1			)%		—			%		1			%		—			%
Weighted average shares - basic		151,663					129,365					144,563					83,269
Weighted average shares - diluted		151,663					171,436					174,824					83,269

Medallia, Inc.
Non-GAAP Supplemental Financial Information
(in thousands, except percentages)
(unaudited)
		Trailing Twelve Months Ended January 31,
		2021			2020
		(in thousands, except percentages)
Subscription revenue		$	382,573		$	312,168
Increase in subscription deferred revenue		31,597			47,549
(Increase) decrease in contract assets		(2,646)			1,052
Subscription billings		$	411,524		$	360,769
Subscription billings growth rate		14%			25%

Medallia, Inc.
Financial Outlook
(in thousands, except percentages)
(unaudited)

The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because our future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and we assume no obligation to update.

Reconciliation of GAAP to Non-GAAP Forward Looking Guidance Measures
		Three Months Ended April 30, 2021						Twelve Months Ended January 31, 2022
		Low			High			Low			High
GAAP loss from operations		$	(54,000)		$	(45,500)		$	(204,000)		$	(181,000)
Stock-based compensation		27,000			25,000			127,000			125,000
Employer payroll tax expense related to stock-based compensation		5,000			3,000			16,000			10,000
Amortization of acquired intangible assets		6,000			5,000			25,000			23,000
Acquisition-related costs		2,000			1,000			6,000			1,000
Restructuring and other		2,000			500			8,000			2,000
Non-GAAP loss from operations		$	(12,000)		$	(11,000)		$	(22,000)		$	(20,000)

 

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FAQ

What were Medallia's financial results for Q4 FY 2021?

Medallia reported total revenue of $128 million for Q4 FY 2021, an increase of 16% year-over-year, and subscription revenue of $103.8 million, up 20%.

What is Medallia's guidance for Q1 FY 2022?

Medallia expects Q1 FY 2022 subscription revenue to be between $103 million and $104 million, with year-over-year growth of 16% to 17%.

How much did Medallia's total revenue grow in FY 2021?

Medallia's total revenue grew by 19% in FY 2021, reaching $477.2 million.

What was Medallia's net loss in FY 2021?

Medallia reported a net loss of $148.7 million for the fiscal year 2021, worsening from a loss of $112.3 million in the previous year.