Qumu Reports Fourth Quarter and Full Year 2020 Financial Results
Qumu Corporation (Nasdaq: QUMU) reported a strong Q4 2020, with total revenue rising 10% to $6.9 million. Subscription revenue increased 23% to $5.4 million, contributing to a Subscription Annual Recurring Revenue (ARR) of $11.6 million, up 29% year-over-year. Qumu's gross margin improved to 76%, while the net loss widened to $(4.0) million due to non-cash expenses. The company closed a $23.1 million public offering to support its strategic roadmap and reiterated guidance for at least 20% revenue growth in 2021, aiming for approximately $35 million in total revenue.
- Subscription, maintenance, and support revenue increased 23% to $5.4 million in Q4 2020.
- Total revenue rose 10% to $6.9 million in Q4 2020.
- Subscription ARR increased 29% to $11.6 million.
- Gross margin improved to 76%, up from 69% year-over-year.
- Reiterated financial guidance of at least 20% revenue growth for 2021.
- Net loss widened to $(4.0) million in Q4 2020, compared to $(1.7) million in Q4 2019.
- Significant non-cash expenses impacted net loss, including $1.1 million related to warrant liability fair value.
Qumu Corporation (Nasdaq: QUMU), a leading provider of cloud-based enterprise video technology for organizations of all sizes, today reported financial results for the fourth quarter and full year ended December 31, 2020.
Q4 2020 and Recent Operational Highlights
-
Hosted 32 million viewers on Qumu Cloud during the quarter, up
6% from Q3 2020 and up880% from Q4 2019. - Implemented a “Work from Wherever, Forever” policy for Qumu employees, phasing out dedicated office space in Minneapolis, London and Hyderabad and significantly reducing financial overhead in future years.
- Leveraged new geography-agnostic policy to attract major executive talent, strengthening and diversifying leadership team across sales, marketing, and customer success.
- Named a leader in 2021 Aragon Research Globe for Enterprise Video for the sixth time.
- Launched new Diversity, Equity and Inclusion Committee focused on increasing internal and third-party diversity and helping ensure a fully inclusive work environment.
-
Solidified the balance sheet with the closing of a public offering of common stock on January 29, 2021, which provided approximately
$23.1 million in cash to accelerate the company’s strategic roadmap. -
Secured a
$10 million revolving credit facility with Wells Fargo Bank with availability determined by recurring revenue, maturing January 15, 2023; the company received an advance of$1.8 million and repaid the face amount of the note payable to ESW Holdings, Inc. -
Reiterated financial guidance for 2021 of at least
20% revenue growth compared to 2020.
Q4 2020 Financial Highlights
-
Subscription, maintenance, and support revenue in Q4 2020 increased
23% to$5.4 million , compared to$4.4 million in Q4 2019. -
Total revenue in Q4 2020 increased
10% to$6.9 million , compared to$6.2 million in Q4 2019. -
Gross margin improved to
76% in Q4 2020 from69% in Q4 2019.
Q4 2020 Key Performance Indicators
-
Subscription Annual Recurring Revenue (ARR) increased
29% to$11.6 million in Q4 2020 from$9.0 million in Q4 2019. -
Software-as-a-Service (SaaS) customer retention:
-
Gross Renewal Rate (GRR):
94% at end of Q4 2020 compared to90% at end of Q4 2019. -
Net Renewal Rate (NRR):
128% at end of Q4 2020 compared to115% at end of Q4 2019. -
Dollar Value Retention:
103% at end of Q4 2020 compared to90% at end of Q4 2019.
-
Gross Renewal Rate (GRR):
Management Commentary
“In a transformative period for our business and the world, we finished the year strong and are well-positioned to meet our long-term growth goals,” said Qumu President and CEO TJ Kennedy. “Our improved quarterly and annual financial results demonstrate traction that is driving high-margin subscription ARR, which increased
“Qumu continues to benefit from the continuing shift to remote and permanent hybrid work, and the increasing need for businesses to manage large scale streaming video and video content libraries. As a leading provider of cloud-based enterprise video technology, we expect to play a vital role in the ongoing transformation for how organizations communicate and work.
“These market dynamics have been favorable to Qumu and put us on track to achieve our financial and operational objectives in 2021. We are confident that the investments we have made in our long-term strategic roadmap will accelerate the evolution of Qumu’s subscription business model and expansion into new market opportunities. Longer term, we believe our building momentum and the successful execution of our strategic roadmap will translate to improved, high-margin long term recurring revenues.”
Fourth Quarter 2020 Financial Results
Revenue for Q4 2020 was
Subscription, maintenance, and support revenue for Q4 2020 increased
Gross margin in Q4 2020 was
Net loss in Q4 2020 was
Adjusted EBITDA loss, a non-GAAP measure, in Q4 2020 was
Cash and cash equivalents totaled
Full Year 2020 Financial Highlights
-
Subscription, maintenance, and support revenue for 2020 increased
7% to$19.6 million , compared to$18.2 million in 2019 -
Revenue increased
15% to$29.1 million in 2020, compared to$25.4 million in 2019 -
Gross margin was
71.3% in 2020, compared to72.2% in 2019
Full Year 2020 Financial Results
Revenue for the full year of 2020 increased
Subscription, maintenance, and support revenue for the full year of 2020 increased
Gross margin for the full year of 2020 was
Net loss for full-year 2020 was
Adjusted EBITDA loss, a non-GAAP measure, for the full year of 2020 was
Business Outlook
Qumu provides revenue guidance based on current market conditions and expectations, including the unknown financial impact that COVID-19 and related recovery will have on economies and enterprises around the world. Based on the company’s Q4 2020 financial results, business pipeline, and strategic roadmap implementation progress, Qumu management expects at least
Conference Call
Qumu executive management will host a conference call today (March 4, 2021) at 4:30 p.m. Eastern time.
U.S. Dial-In Number: +1.833.644.0679
International Dial-In Number: +1.918.922.6755
Investors can also access a webcast of the live conference call by linking through the investor relations section of the Qumu website at https://ir.qumu.com. The webcast will be archived on Qumu’s website for one year.
Non-GAAP Information
To supplement the company's condensed consolidated financial statements presented on a GAAP basis, the company uses adjusted EBITDA, a non-GAAP measure, which excludes certain items from net loss, a GAAP measure. Adjusted EBITDA excludes items related to interest income and expense, the impact of income-based taxes, depreciation and amortization, stock-based compensation, change in fair value of warrant liabilities, foreign currency gains and losses, other non-operating income and expenses, non-cash office lease surrender costs and transaction-related expenses.
The company uses both GAAP and non-GAAP measures when planning, monitoring, and evaluating the company’s performance. The company believes that adjusted EBITDA is useful to investors because it provides supplemental information that allows investors to review the company's results of operations from the same perspective as management and the company's board of directors. Non-GAAP results are presented for supplemental informational purposes only for understanding our operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.
See the attached Supplemental Financial Information for a reconciliation of net loss, a GAAP measure, to adjusted EBITDA, a non-GAAP measure, for the three and 12 months ended December 31, 2020 and 2019.
About Qumu
Qumu (Nasdaq: QUMU) is a leading provider of best-in-class tools to create, manage, secure, distribute and measure the success of live and on-demand video for the enterprise. Backed by the most trusted and experienced team in the industry, the Qumu Cloud platform enables global organizations to drive employee engagement, increase access to video, and modernize the workplace by providing a more efficient and effective way to share knowledge.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” or “estimate” or comparable terminology are intended to identify forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements.
Such forward-looking statements include, for example, statements about: the expected use and adoption of video in the enterprise, the impact of COVID-19 on the use and adoption of video in the enterprise, the Company’s future revenue and operating performance, cash balances, future product mix or the timing of recognition of revenue, the demand for the Company’s products or software, or the success of go-to-market strategies or the other initiatives in the Company’s strategic roadmap. The risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements include the risk factors described in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, any subsequently filed Form 10-Q and Current Reports on Form 8-K and other filings with the Securities and Exchange Commission.
The forward-looking statements in this press release speak only as of the date of this press release. Except as required by law, Qumu assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, except as required by law.
QUMU CORPORATION
|
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Software licenses and appliances |
$ |
613 |
|
|
$ |
1,247 |
|
|
$ |
6,762 |
|
|
$ |
4,903 |
|
Service |
6,268 |
|
|
4,981 |
|
|
22,310 |
|
|
20,459 |
|
||||
Total revenues |
6,881 |
|
|
6,228 |
|
|
29,072 |
|
|
25,362 |
|
||||
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Software licenses and appliances |
184 |
|
|
545 |
|
|
2,528 |
|
|
1,911 |
|
||||
Service |
1,488 |
|
|
1,401 |
|
|
5,825 |
|
|
5,148 |
|
||||
Total cost of revenues |
1,672 |
|
|
1,946 |
|
|
8,353 |
|
|
7,059 |
|
||||
Gross profit |
5,209 |
|
|
4,282 |
|
|
20,719 |
|
|
18,303 |
|
||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
2,279 |
|
|
1,999 |
|
|
8,252 |
|
|
7,360 |
|
||||
Sales and marketing |
2,612 |
|
|
2,062 |
|
|
9,055 |
|
|
8,709 |
|
||||
General and administrative |
3,004 |
|
|
1,789 |
|
|
10,059 |
|
|
6,787 |
|
||||
Amortization of purchased intangibles |
165 |
|
|
170 |
|
|
657 |
|
|
757 |
|
||||
Total operating expenses |
8,060 |
|
|
6,020 |
|
|
28,023 |
|
|
23,613 |
|
||||
Operating loss |
(2,851 |
) |
|
(1,738 |
) |
|
(7,304 |
) |
|
(5,310 |
) |
||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
(35 |
) |
|
(100 |
) |
|
(73 |
) |
|
(754 |
) |
||||
Decrease (increase) in fair value of derivative liability |
(1 |
) |
|
— |
|
|
103 |
|
|
— |
|
||||
Decrease (increase) in fair value of warrant liability |
(1,096 |
) |
|
611 |
|
|
(1,826 |
) |
|
(141 |
) |
||||
Gain on sale of BriefCam, Ltd. |
— |
|
|
— |
|
|
— |
|
|
41 |
|
||||
Loss on extinguishment of debt |
— |
|
|
(348 |
) |
|
— |
|
|
(348 |
) |
||||
Other, net |
(154 |
) |
|
(157 |
) |
|
(406 |
) |
|
(125 |
) |
||||
Total other income (expense), net |
(1,286 |
) |
|
6 |
|
|
(2,202 |
) |
|
(1,327 |
) |
||||
Loss before income taxes |
(4,137 |
) |
|
(1,732 |
) |
|
(9,506 |
) |
|
(6,637 |
) |
||||
Income tax benefit |
(159 |
) |
|
(61 |
) |
|
(306 |
) |
|
(194 |
) |
||||
Net loss |
$ |
(3,978 |
) |
|
$ |
(1,671 |
) |
|
$ |
(9,200 |
) |
|
$ |
(6,443 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share – basic: |
|
|
|
|
|
|
|
||||||||
Net loss per share – basic |
$ |
(0.29 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.62 |
) |
Weighted average shares outstanding – basic |
13,781 |
|
|
12,096 |
|
|
13,612 |
|
|
10,395 |
|
||||
Net loss per share – diluted: |
|
|
|
|
|
|
|
||||||||
Loss attributable to common shareholders |
$ |
(3,978 |
) |
|
$ |
(2,134 |
) |
|
$ |
(9,494 |
) |
|
$ |
(6,548 |
) |
Net loss per share – diluted |
$ |
(0.29 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.63 |
) |
Weighted average shares outstanding – diluted |
13,781 |
|
|
12,392 |
|
|
13,627 |
|
|
10,414 |
|
QUMU CORPORATION
|
|||||||
|
December 31, |
||||||
Assets |
2020 |
|
2019 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
11,878 |
|
|
$ |
10,639 |
|
Receivables, net |
5,612 |
|
|
4,586 |
|
||
Contract assets |
467 |
|
|
1,089 |
|
||
Income taxes receivable |
479 |
|
|
338 |
|
||
Prepaid expenses and other current assets |
2,302 |
|
|
1,981 |
|
||
Total current assets |
20,738 |
|
|
18,633 |
|
||
Property and equipment, net |
249 |
|
|
596 |
|
||
Right of use assets – operating leases |
332 |
|
|
1,746 |
|
||
Intangible assets, net |
2,143 |
|
|
3,075 |
|
||
Goodwill |
7,455 |
|
|
7,203 |
|
||
Deferred income taxes, non-current |
19 |
|
|
21 |
|
||
Other assets, non-current |
490 |
|
|
442 |
|
||
Total assets |
$ |
31,426 |
|
|
$ |
31,716 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and other accrued liabilities |
$ |
2,705 |
|
|
$ |
2,816 |
|
Accrued compensation |
2,145 |
|
|
1,165 |
|
||
Deferred revenue |
12,918 |
|
|
10,140 |
|
||
Operating lease liabilities |
735 |
|
|
587 |
|
||
Financing obligations |
406 |
|
|
157 |
|
||
Note payable |
1,800 |
|
|
— |
|
||
Derivative liability |
37 |
|
|
— |
|
||
Warrant liability |
2,910 |
|
|
2,939 |
|
||
Total current liabilities |
23,656 |
|
|
17,804 |
|
||
Long-term liabilities: |
|
|
|
||||
Deferred revenue, non-current |
3,488 |
|
|
1,449 |
|
||
Income taxes payable, non-current |
608 |
|
|
585 |
|
||
Operating lease liabilities, non-current |
554 |
|
|
1,587 |
|
||
Financing obligations, non-current |
75 |
|
|
83 |
|
||
Other liabilities, non-current |
160 |
|
|
— |
|
||
Total long-term liabilities |
4,885 |
|
|
3,704 |
|
||
Total liabilities |
28,541 |
|
|
21,508 |
|
||
Stockholders’ equity: |
|
|
|
||||
Common stock |
138 |
|
|
136 |
|
||
Additional paid-in capital |
79,489 |
|
|
78,061 |
|
||
Accumulated deficit |
(74,328 |
) |
|
(65,128 |
) |
||
Accumulated other comprehensive loss |
(2,414 |
) |
|
(2,861 |
) |
||
Total stockholders’ equity |
2,885 |
|
|
10,208 |
|
||
Total liabilities and stockholders’ equity |
$ |
31,426 |
|
|
$ |
31,716 |
|
QUMU CORPORATION
|
|||||||
|
Year Ended
|
||||||
|
2020 |
|
2019 |
||||
Operating activities: |
|
|
|
||||
Net loss |
$ |
(9,200 |
) |
|
$ |
(6,443 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
1,518 |
|
|
1,526 |
|
||
Stock-based compensation |
1,178 |
|
|
857 |
|
||
Accretion of debt discount and issuance costs |
85 |
|
|
471 |
|
||
Loss on debt extinguishment |
— |
|
|
348 |
|
||
Gain on sale of BriefCam, Ltd. |
— |
|
|
(41 |
) |
||
Gain on lease modification |
— |
|
|
(21 |
) |
||
Decrease in fair value of derivative liability |
(103 |
) |
|
— |
|
||
Increase in fair value of warrant liability |
1,826 |
|
|
141 |
|
||
Deferred income taxes |
2 |
|
|
31 |
|
||
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
(938 |
) |
|
1,720 |
|
||
Contract assets |
645 |
|
|
(604 |
) |
||
Income taxes receivable / payable |
(102 |
) |
|
13 |
|
||
Prepaid expenses and other assets |
157 |
|
|
522 |
|
||
Accounts payable and other accrued liabilities |
682 |
|
|
174 |
|
||
Accrued compensation |
972 |
|
|
(389 |
) |
||
Deferred revenue |
4,688 |
|
|
181 |
|
||
Other non-current liabilities |
160 |
|
|
(24 |
) |
||
Net cash provided by (used in) operating activities |
1,570 |
|
|
(1,538 |
) |
||
Investing activities: |
|
|
|
||||
Proceeds from sale of BriefCam, Ltd. |
— |
|
|
41 |
|
||
Purchases of property and equipment |
(128 |
) |
|
(168 |
) |
||
Net cash used in investing activities |
(128 |
) |
|
(127 |
) |
||
Financing activities: |
|
|
|
||||
Proceeds from issuance of common stock |
— |
|
|
8,201 |
|
||
Proceeds from issuance of common stock under employee stock plans |
440 |
|
|
46 |
|
||
Principal payments on term loan |
— |
|
|
(4,000 |
) |
||
Payment of debt issuance costs |
— |
|
|
(250 |
) |
||
Principal payments on financing obligations |
(372 |
) |
|
(320 |
) |
||
Common stock repurchases to settle employee withholding liability |
(188 |
) |
|
(75 |
) |
||
Net cash provided by (used in) financing activities |
(120 |
) |
|
3,602 |
|
||
Effect of exchange rate changes on cash |
(83 |
) |
|
66 |
|
||
Net increase in cash and cash equivalents |
1,239 |
|
|
2,003 |
|
||
Cash and cash equivalents, beginning of period |
10,639 |
|
|
8,636 |
|
||
Cash and cash equivalents, end of period |
$ |
11,878 |
|
|
$ |
10,639 |
|
QUMU CORPORATION
|
|||||||||||||||
A summary of revenue is as follows: |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Software licenses and appliances |
$ |
613 |
|
|
$ |
1,247 |
|
|
$ |
6,762 |
|
|
$ |
4,903 |
|
Service |
|
|
|
|
|
|
|
||||||||
Subscription, maintenance and support |
5,373 |
|
|
4,366 |
|
|
19,555 |
|
|
18,249 |
|
||||
Professional services and other |
895 |
|
|
615 |
|
|
2,755 |
|
|
2,210 |
|
||||
Total service |
6,268 |
|
|
4,981 |
|
|
22,310 |
|
|
20,459 |
|
||||
Total revenue |
$ |
6,881 |
|
|
$ |
6,228 |
|
|
$ |
29,072 |
|
|
$ |
25,362 |
|
A reconciliation from GAAP results to adjusted EBITDA is as follows: |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net loss |
$ |
(3,978 |
) |
|
$ |
(1,671 |
) |
|
$ |
(9,200 |
) |
|
$ |
(6,443 |
) |
Interest expense, net |
35 |
|
|
100 |
|
|
73 |
|
|
754 |
|
||||
Income tax benefit |
(159 |
) |
|
(61 |
) |
|
(306 |
) |
|
(194 |
) |
||||
Depreciation and amortization expense: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization in operating expenses(1) |
344 |
|
|
71 |
|
|
575 |
|
|
314 |
|
||||
Total depreciation and amortization expense |
344 |
|
|
71 |
|
|
575 |
|
|
314 |
|
||||
Amortization of intangibles included in cost of revenues |
74 |
|
|
115 |
|
|
286 |
|
|
455 |
|
||||
Amortization of intangibles included in operating expenses |
165 |
|
|
170 |
|
|
657 |
|
|
757 |
|
||||
Total amortization of intangibles expense |
239 |
|
|
285 |
|
|
943 |
|
|
1,212 |
|
||||
Total depreciation and amortization expense |
583 |
|
|
356 |
|
|
1,518 |
|
|
1,526 |
|
||||
EBITDA |
(3,519 |
) |
|
(1,276 |
) |
|
(7,915 |
) |
|
(4,357 |
) |
||||
Gain on sale of BriefCam, Ltd. |
— |
|
|
— |
|
|
— |
|
|
(41 |
) |
||||
Loss on extinguishment of debt |
— |
|
|
348 |
|
|
— |
|
|
348 |
|
||||
Increase (decrease) in fair value of derivative liability |
1 |
|
|
— |
|
|
(103 |
) |
|
— |
|
||||
Increase (decrease) in fair value of warrant liability |
1,096 |
|
|
(611 |
) |
|
1,826 |
|
|
141 |
|
||||
Other expense (income), net |
154 |
|
|
157 |
|
|
406 |
|
|
125 |
|
||||
Stock-based compensation expense: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation included in cost of revenues |
14 |
|
|
6 |
|
|
36 |
|
|
26 |
|
||||
Stock-based compensation included in operating expenses |
544 |
|
|
207 |
|
|
1,142 |
|
|
831 |
|
||||
Total stock-based compensation expense |
558 |
|
|
213 |
|
|
1,178 |
|
|
857 |
|
||||
Non-cash office lease surrender costs |
637 |
|
|
— |
|
|
637 |
|
|
— |
|
||||
Transaction-related expenses |
— |
|
|
— |
|
|
1,623 |
|
|
— |
|
||||
Adjusted EBITDA |
$ |
(1,073 |
) |
|
$ |
(1,169 |
) |
|
$ |
(2,348 |
) |
|
$ |
(2,927 |
) |
_________________________________________________ |
|||||||||||||||
(1) Includes |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210304005977/en/
FAQ
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