Qumu Reports Fourth Quarter and Full Year 2021 Financial Results
Qumu Corporation (QUMU) has reported a 35% increase in SaaS revenue, reaching $10.2 million for 2021, and a 16% growth in SaaS Annual Recurring Revenue (ARR) to $12.8 million. Despite a net loss of $(16.4 million) for the year, the company is seeing positive momentum with 90% Gross Retention Rate and 114% Net Retention Rate. The leadership is optimistic, setting a goal for SaaS recurring revenue to reach 65% by the end of 2022. Cash and equivalents stood at $20.6 million at year-end.
- SaaS revenue grew by 35% to $10.2 million in 2021.
- SaaS ARR increased 16% to $12.8 million.
- Gross margin improved to 74% in 2021 from 71% in 2020.
- Overall operating expenses decreased by 4% in Q4 2021 compared to Q3 2021.
- Achieved a 40% CAGR in SaaS ARR from 2019 to 2021.
- Net loss increased to $(16.4 million) in 2021 from $(9.2 million) in 2020.
- Revenue for full year 2021 declined to $24 million from $29.1 million in 2020.
- Adjusted EBITDA loss widened to $(15.2 million) in 2021 from $(2.3 million) in 2020.
- Revenue for Q4 2021 was $5.9 million, lower than $6.9 million in Q4 2020.
Continued Execution of Cloud Growth Strategy Drives
Q4 2021 and Recent Operational Highlights
-
Recognized by
Aragon Research in the “Leader” category of the 2022Aragon Research Globe for Enterprise Video. - Partnered with Kollective, a provider of enterprise content delivery networking, and introduced the new Qumu Partner Program to meet growing enterprise video needs of global organizations.
- Unveiled the latest capabilities for the Qumu Video Engagement Platform that provides system administrators with improved monitoring and management capabilities.
- Named a finalist in the 2021-2022 Cloud Awards, the international cloud computing awards program.
-
Strengthened the leadership team with the appointment of
Tom Krueger as the company’s new CFO to drive success of Qumu’s continued SaaS transformation. -
Partnered with
GovSmart to bring Qumu’s Video Engagement Platform to government agencies as they work to modernize IT systems and communicate via video with their wide networks.
Q4 2021 and Full Year 2021 Financial Highlights
-
Software-as-a-Service (SaaS) ARR growth from 2019 to 2021 resulted in a
40% compound annual growth rate (CAGR). -
SaaS revenue increased
35% to in 2021, compared to$10.2 million in 2020.$7.6 million -
SaaS Annual Recurring Revenue (SaaS ARR) grew to
, up$12.8 million 16% year-over-year. -
Q4 2021 operating expenses decreased
4% compared to Q3 2021. -
of cash and cash equivalents at quarter end.$20.6 million
Q4 2021 Key Performance Indicators
-
SaaS revenue accounted for
56% of recurring revenue, exceeding the company’s guidance of50% for 2021. -
SaaS ARR increased
16% to in Q4 2021 from$12.8 million in Q4 2020.$11.1 million -
SaaS customer retention metrics:
-
Gross Retention Rate (GRR):
91% at end of Q4 2021 compared to80% at end of Q4 2020. -
Net Retention Rate (NRR):
114% at end of Q4 2021 compared to141% at end of Q4 2020.
-
Gross Retention Rate (GRR):
Management Commentary
“Our results for the fourth quarter and full year demonstrate the continued execution of our strategic roadmap, which emphasizes growing our cloud business and scaling our SaaS revenue base,” said
Qumu CFO
Kennedy continued: “2021 was a transformative year for our organization, and I am incredibly proud of what the team accomplished. We scaled our cloud offerings, expanded our partner network, converted key on-prem customers, and delivered robust SaaS revenue growth, all of which allowed us to enter 2022 with solid momentum.
“Looking ahead, the progress we’re making with partners and strategic alliances is gaining traction, which we believe will translate to even more results starting in the second quarter of this year. As we continue to transform our business, we are focused on delivering robust SaaS revenue growth, which will be driven by new customer and expansion bookings sourced through the channel in 2022. Based on our success driving SaaS revenue and ARR in 2021, we are increasing our goals for 2022. We now expect our SaaS recurring revenue as a percentage of our recurring revenue to be at least
Fourth Quarter 2021 Financial Results
Revenue for Q4 2021 was
Service revenue for Q4 2021 was
Gross margin in Q4 2021 was
Net loss in Q4 2021 totaled
Adjusted EBITDA loss, a non-GAAP measure, in Q4 2021 was
As of
Full Year 2021 Financial Results
Revenue for full year 2021 was
Service revenue for full year 2021 was
Gross margin in 2021 was
Net loss in 2021 totaled
Adjusted EBITDA loss, a non-GAAP measure, in 2021 was
Business Outlook
To give insight into the progress of Qumu’s SaaS business transformation, the company provides a business outlook based on the percentage of recurring revenue comprised of SaaS revenue.
Conference Call
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
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 derivative and warrant liabilities, foreign currency gains and losses, other non-operating income and expenses, 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 months and year ended
About
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 plan. 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 Annual Report on Form 10-K for the year ended
The forward-looking statements in this press release speak only as of the date of this press release. Except as required by law,
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(unaudited - in thousands, except per share data) |
||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Revenues: |
|
|
|
|
|
|
|
|||||||||
Software licenses and appliances |
$ |
95 |
|
|
$ |
811 |
|
|
$ |
1,186 |
|
|
$ |
7,547 |
|
|
Service |
|
5,815 |
|
|
|
6,070 |
|
|
|
22,836 |
|
|
|
21,525 |
|
|
Total revenues |
|
5,910 |
|
|
|
6,881 |
|
|
|
24,022 |
|
|
|
29,072 |
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|||||||||
Software licenses and appliances |
|
32 |
|
|
|
184 |
|
|
|
222 |
|
|
|
2,528 |
|
|
Service |
|
1,476 |
|
|
|
1,488 |
|
|
|
5,946 |
|
|
|
5,825 |
|
|
Total cost of revenues |
|
1,508 |
|
|
|
1,672 |
|
|
|
6,168 |
|
|
|
8,353 |
|
|
Gross profit |
|
4,402 |
|
|
|
5,209 |
|
|
|
17,854 |
|
|
|
20,719 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Research and development |
|
1,907 |
|
|
|
2,279 |
|
|
|
8,426 |
|
|
|
8,252 |
|
|
Sales and marketing |
|
4,339 |
|
|
|
2,612 |
|
|
|
18,478 |
|
|
|
9,055 |
|
|
General and administrative |
|
2,046 |
|
|
|
3,004 |
|
|
|
8,596 |
|
|
|
10,059 |
|
|
Amortization of purchased intangibles |
|
161 |
|
|
|
165 |
|
|
|
649 |
|
|
|
657 |
|
|
Total operating expenses |
|
8,453 |
|
|
|
8,060 |
|
|
|
36,149 |
|
|
|
28,023 |
|
|
Operating loss |
|
(4,051 |
) |
|
|
(2,851 |
) |
|
|
(18,295 |
) |
|
|
(7,304 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
(19 |
) |
|
|
(35 |
) |
|
|
(100 |
) |
|
|
(73 |
) |
|
Decrease (increase) in fair value of derivative liability |
|
— |
|
|
|
(1 |
) |
|
|
37 |
|
|
|
103 |
|
|
Decrease (increase) in fair value of warrant liability |
|
80 |
|
|
|
(1,096 |
) |
|
|
1,549 |
|
|
|
(1,826 |
) |
|
Gain on sale of BriefCam |
|
— |
|
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
Other, net |
|
25 |
|
|
|
(154 |
) |
|
|
2 |
|
|
|
(406 |
) |
|
Total other income (expense), net |
|
86 |
|
|
|
(1,286 |
) |
|
|
1,538 |
|
|
|
(2,202 |
) |
|
Loss before income taxes |
|
(3,965 |
) |
|
|
(4,137 |
) |
|
|
(16,757 |
) |
|
|
(9,506 |
) |
|
Income tax benefit |
|
(116 |
) |
|
|
(159 |
) |
|
|
(392 |
) |
|
|
(306 |
) |
|
Net loss |
$ |
(3,849 |
) |
|
$ |
(3,978 |
) |
|
$ |
(16,365 |
) |
|
$ |
(9,200 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per share – basic: |
|
|
|
|
|
|
|
|||||||||
Net loss per share – basic |
$ |
(0.21 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.93 |
) |
|
$ |
(0.68 |
) |
|
Weighted average shares outstanding – basic |
|
17,978 |
|
|
|
13,781 |
|
|
|
17,514 |
|
|
|
13,612 |
|
|
Net loss per share – diluted: |
|
|
|
|
|
|
|
|||||||||
Loss attributable to common shareholders |
$ |
(3,849 |
) |
|
$ |
(3,978 |
) |
|
$ |
(17,913 |
) |
|
$ |
(9,494 |
) |
|
Net loss per share – diluted |
$ |
(0.21 |
) |
|
$ |
(0.29 |
) |
|
$ |
(1.01 |
) |
|
$ |
(0.70 |
) |
|
Weighted average shares outstanding – diluted |
|
17,978 |
|
|
|
13,781 |
|
|
|
17,650 |
|
|
|
13,627 |
|
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(unaudited - in thousands) |
||||||||
|
|
|
|
|||||
Assets |
2021 |
|
2020 |
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
20,563 |
|
|
$ |
11,878 |
|
|
Receivables, net |
|
3,709 |
|
|
|
5,612 |
|
|
Contract assets |
|
446 |
|
|
|
467 |
|
|
Income taxes receivable |
|
556 |
|
|
|
479 |
|
|
Prepaid expenses and other current assets |
|
2,184 |
|
|
|
2,302 |
|
|
Total current assets |
|
27,458 |
|
|
|
20,738 |
|
|
Property and equipment, net |
|
337 |
|
|
|
249 |
|
|
Right of use assets – operating leases |
|
146 |
|
|
|
332 |
|
|
Intangible assets, net |
|
1,388 |
|
|
|
2,143 |
|
|
|
|
7,388 |
|
|
|
7,455 |
|
|
Deferred income taxes, non-current |
|
17 |
|
|
|
19 |
|
|
Other assets, non-current |
|
362 |
|
|
|
490 |
|
|
Total assets |
$ |
37,096 |
|
|
$ |
31,426 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable and other accrued liabilities |
$ |
2,742 |
|
|
$ |
2,705 |
|
|
Accrued compensation |
|
1,725 |
|
|
|
2,145 |
|
|
Deferred revenue |
|
10,862 |
|
|
|
12,918 |
|
|
Operating lease liabilities |
|
597 |
|
|
|
735 |
|
|
Financing obligations |
|
5,502 |
|
|
|
406 |
|
|
Note payable |
|
— |
|
|
|
1,800 |
|
|
Derivative liability |
|
— |
|
|
|
37 |
|
|
Warrant liability |
|
801 |
|
|
|
2,910 |
|
|
Total current liabilities |
|
22,229 |
|
|
|
23,656 |
|
|
Long-term liabilities: |
|
|
|
|||||
Deferred revenue, non-current |
|
1,507 |
|
|
|
3,488 |
|
|
Income taxes payable, non-current |
|
630 |
|
|
|
608 |
|
|
Operating lease liabilities, non-current |
|
21 |
|
|
|
554 |
|
|
Financing obligations, non-current |
|
113 |
|
|
|
75 |
|
|
Other liabilities, non-current |
|
— |
|
|
|
160 |
|
|
Total long-term liabilities |
|
2,271 |
|
|
|
4,885 |
|
|
Total liabilities |
|
24,500 |
|
|
|
28,541 |
|
|
Stockholders’ equity: |
|
|
|
|||||
Common stock |
|
178 |
|
|
|
138 |
|
|
Additional paid-in capital |
|
105,655 |
|
|
|
79,489 |
|
|
Accumulated deficit |
|
(90,693 |
) |
|
|
(74,328 |
) |
|
Accumulated other comprehensive loss |
|
(2,544 |
) |
|
|
(2,414 |
) |
|
Total stockholders’ equity |
|
12,596 |
|
|
|
2,885 |
|
|
Total liabilities and stockholders’ equity |
$ |
37,096 |
|
|
$ |
31,426 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(unaudited - in thousands) |
||||||||
|
Year Ended
|
|||||||
|
2021 |
|
2020 |
|||||
Operating activities: |
|
|
|
|||||
Net loss |
$ |
(16,365 |
) |
|
$ |
(9,200 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
983 |
|
|
|
1,518 |
|
|
Loss on disposal of property and equipment |
|
5 |
|
|
|
— |
|
|
Stock-based compensation |
|
2,067 |
|
|
|
1,178 |
|
|
Accretion of debt discount and issuance costs |
|
40 |
|
|
|
85 |
|
|
Gain on sale of |
|
(50 |
) |
|
|
— |
|
|
Decrease in fair value of derivative liability |
|
(37 |
) |
|
|
(103 |
) |
|
Increase (decrease) in fair value of warrant liability |
|
(1,549 |
) |
|
|
1,826 |
|
|
Deferred income taxes |
|
2 |
|
|
|
2 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Receivables |
|
1,911 |
|
|
|
(938 |
) |
|
Contract assets |
|
21 |
|
|
|
645 |
|
|
Income taxes receivable / payable |
|
(50 |
) |
|
|
(102 |
) |
|
Prepaid expenses and other assets |
|
752 |
|
|
|
157 |
|
|
Accounts payable and other accrued liabilities |
|
(530 |
) |
|
|
682 |
|
|
Accrued compensation |
|
(419 |
) |
|
|
972 |
|
|
Deferred revenue |
|
(4,029 |
) |
|
|
4,688 |
|
|
Other non-current liabilities |
|
(160 |
) |
|
|
160 |
|
|
Net cash provided by (used in) operating activities |
|
(17,408 |
) |
|
|
1,570 |
|
|
Investing activities: |
|
|
|
|||||
Proceeds from sale of |
|
50 |
|
|
|
— |
|
|
Purchases of property and equipment |
|
(239 |
) |
|
|
(128 |
) |
|
Net cash used in investing activities |
|
(189 |
) |
|
|
(128 |
) |
|
Financing activities: |
|
|
|
|||||
Proceeds from line of credit |
|
6,840 |
|
|
|
— |
|
|
Payment on line of credit |
|
(1,840 |
) |
|
|
— |
|
|
Principal payments on term loan |
|
(1,833 |
) |
|
|
— |
|
|
Principal payments on financing obligations |
|
(445 |
) |
|
|
(372 |
) |
|
Payment of debt issuance costs |
|
(25 |
) |
|
|
— |
|
|
Net proceeds from common stock issuance |
|
23,085 |
|
|
|
— |
|
|
Proceeds from issuance of common stock under employee stock plans |
|
545 |
|
|
|
440 |
|
|
Common stock repurchases to settle employee withholding liability |
|
(51 |
) |
|
|
(188 |
) |
|
Net cash provided by (used in) financing activities |
|
26,276 |
|
|
|
(120 |
) |
|
Effect of exchange rate changes on cash |
|
6 |
|
|
|
(83 |
) |
|
Net increase in cash and cash equivalents |
|
8,685 |
|
|
|
1,239 |
|
|
Cash and cash equivalents, beginning of period |
|
11,878 |
|
|
|
10,639 |
|
|
Cash and cash equivalents, end of period |
$ |
20,563 |
|
|
$ |
11,878 |
|
|
||||||||||||
Supplemental Financial Information |
||||||||||||
(unaudited - in thousands) |
||||||||||||
A summary of revenue is as follows: |
||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||
Software licenses and appliances |
$ |
95 |
|
$ |
811 |
|
$ |
1,186 |
|
$ |
7,547 |
|
Service |
|
|
|
|
|
|
|
|||||
Subscription, maintenance and support |
|
5,036 |
|
|
5,175 |
|
|
20,074 |
|
|
18,770 |
|
Professional services and other |
|
779 |
|
|
895 |
|
|
2,762 |
|
|
2,755 |
|
Total service |
|
5,815 |
|
|
6,070 |
|
|
22,836 |
|
|
21,525 |
|
Total revenue |
$ |
5,910 |
|
$ |
6,881 |
|
$ |
24,022 |
|
$ |
29,072 |
A reconciliation from GAAP results to Adjusted EBITDA is as follows: |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net loss |
$ |
(3,849 |
) |
|
$ |
(3,978 |
) |
|
$ |
(16,365 |
) |
|
$ |
(9,200 |
) |
Interest expense, net |
|
19 |
|
|
|
35 |
|
|
|
100 |
|
|
|
73 |
|
Income tax benefit |
|
(116 |
) |
|
|
(159 |
) |
|
|
(392 |
) |
|
|
(306 |
) |
Depreciation and amortization expense: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization in operating expenses |
|
58 |
|
|
|
344 |
|
|
|
228 |
|
|
|
575 |
|
Total depreciation and amortization expense |
|
58 |
|
|
|
344 |
|
|
|
228 |
|
|
|
575 |
|
Amortization of intangibles included in cost of revenues |
|
26 |
|
|
|
74 |
|
|
|
106 |
|
|
|
286 |
|
Amortization of intangibles included in operating expenses |
|
161 |
|
|
|
165 |
|
|
|
649 |
|
|
|
657 |
|
Total amortization of intangibles expense |
|
187 |
|
|
|
239 |
|
|
|
755 |
|
|
|
943 |
|
Total depreciation and amortization expense |
|
245 |
|
|
|
583 |
|
|
|
983 |
|
|
|
1,518 |
|
EBITDA |
|
(3,701 |
) |
|
|
(3,519 |
) |
|
|
(15,674 |
) |
|
|
(7,915 |
) |
Gain on sale of |
|
— |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Increase (decrease) in fair value of derivative liability |
|
— |
|
|
|
1 |
|
|
|
(37 |
) |
|
|
(103 |
) |
Increase (decrease) in fair value of warrant liability |
|
(80 |
) |
|
|
1,096 |
|
|
|
(1,549 |
) |
|
|
1,826 |
|
Other expense (income), net |
|
(25 |
) |
|
|
154 |
|
|
|
(2 |
) |
|
|
406 |
|
Stock-based compensation expense: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation included in cost of revenues |
|
27 |
|
|
|
14 |
|
|
|
71 |
|
|
|
36 |
|
Stock-based compensation included in operating expenses |
|
637 |
|
|
|
544 |
|
|
|
1,996 |
|
|
|
1,142 |
|
Total stock-based compensation expense |
|
664 |
|
|
|
558 |
|
|
|
2,067 |
|
|
|
1,178 |
|
Non-cash office lease surrender costs |
|
— |
|
|
|
637 |
|
|
|
— |
|
|
|
637 |
|
Transaction-related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,623 |
|
Adjusted EBITDA |
$ |
(3,142 |
) |
|
$ |
(1,073 |
) |
|
$ |
(15,245 |
) |
|
$ |
(2,348 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005822/en/
Company Contact:
Chief Financial Officer
Tom.Krueger@qumu.com
+1.612.638.9100
Investor Contact:
Gateway Investor Relations
QUMU@gatewayir.com
+1.949.574.3860
Source:
FAQ
What were Qumu's SaaS revenue results for 2021?
How much did Qumu's SaaS Annual Recurring Revenue (ARR) grow in Q4 2021?
What are Qumu's financial losses for the year 2021?