Quotient Technology Inc. Announces Second Quarter 2022 Results

Rhea-AI Summary

Quotient Technology reported second quarter 2022 revenue of $69.3 million, a 44% decrease from the previous year. Promotions revenue fell 28% to $42.6 million, while Media revenue plummeted 59% to $26.6 million. Gross profit was $32.0 million, down from $41.7 million, though gross margin improved to 46.2%. The company experienced a net loss of $43.4 million and an adjusted EBITDA loss of $1.3 million. For Q3 2022, it forecasts revenue between $70 million and $80 million.

Positive

• Improved gross margin to 46.2%, up from 33.7% year-over-year.
• Generated $19.5 million in net cash from operations in Q2.
• Liquidity remains strong with $214.9 million in cash and cash equivalents.

Negative

• Revenue down 44% from Q2 2021.
• Promotions revenue decreased 28%, Media revenue down 59%.
• Operational loss increased to $(39.4) million from $(13.4) million year-over-year.

Second Quarter 2022

• Quarterly Revenue of $69.3M
• GAAP Net Loss of $43.4M
• Adjusted EBITDA Loss of $1.3M

SALT LAKE CITY--(BUSINESS WIRE)-- Quotient Technology Inc. (NYSE: QUOT), a leading digital media and promotions technology company, today reported financial results for the second quarter ended June 30, 2022.

“Our solid second quarter results demonstrate the early impact of the significant changes we are making across our organization to position the Company for consistent, profitable growth,” said Matt Krepsik, Chief Executive Officer. “In our view, the key to our success is delivering value to our customers and the consumers they serve. In the second quarter, we delivered $2.6 billion of savings to consumers, illustrating the power of our network. With our organizational realignment complete, we believe we are well positioned to execute on our growth pillars to serve our customers, expand our reach and deliver enhanced shareholder value.”

Second Quarter 2022 Financial Highlights

• Revenue: Total revenue for the second quarter of 2022 was $69.3 million, down 44% from the second quarter of 2021. Within total revenue, Promotions revenue was $42.6 million, down 28% from the second quarter of 2021, and Media revenue was $26.6 million, down 59% from the second quarter of 2021.
• Gross Profit: Gross profit for the second quarter of 2022 was $32.0 million, compared to $41.7 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 46.2%, compared to 33.7% for the second quarter of 2021. Non-GAAP gross profit for the second quarter of 2022 was $36.2 million, compared to $50.0 million for the second quarter of 2021. Non-GAAP gross margin was 52.3% for the second quarter of 2022, compared to 40.3% for the second quarter of 2021.
• Operating Income/(Loss): Operating loss for the second quarter of 2022 was $(39.4) million, compared to $(13.4) million for the second quarter of 2021. Non-GAAP operating loss for the second quarter of 2022 was $(3.4) million, compared to $2.8 million non-GAAP operating profit for the second quarter of 2021.
• Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2022 was $(1.3) million loss, compared to $4.3 million profit for the second quarter of 2021.
• Liquidity: As of June 30, 2022, cash and cash equivalents were $214.9 million. We generated $19.5 million in net cash from operations in the second quarter. We used $6.1 million in net cash from operations for year-to-date 2022.

Financial Outlook

Quotient is providing guidance for its third quarter and full year 2022 as follows:

Quotient's guidance for the third quarter 2022:

• Revenue: $70 million to $80 million
• Non-GAAP Gross Profit: $37 million to $42 million
• Adjusted EBITDA: $5 million to $10 million
• Operating Cash Flow: ($5) million to $0 million

Quotient's guidance for the full year 2022:

• Revenue: $295 million to $310 million
• Non-GAAP Gross Profit: $147 million to $160 million
• Adjusted EBITDA: $15 million to $20 million
• Operating Cash Flow: $0 million to $5 million

Call Information

The Company has posted an earnings presentation on the Investor Relations section of the Company’s website at: http://investors.quotient.com/. Management will host a conference call and live webcast to discuss the highlights of the quarter and address questions today at 5:00 p.m. ET/ 2:00 p.m. PT.

To access the call, we encourage you to pre-register to eliminate long wait times using this link: Quotient Q2 2022 Earnings Pre Registration. After registering, a confirmation will be sent via email and will include dial-in details and a unique PIN code for entry to the call. Registration will be open through the live call. You may also access the call and register with a live operator by dialing 1 (844) 200 6205, for Canada or +1 (929) 526 1599 for outside the U.S. You will be able to access the call by using code 366124. We suggest registering for call at least 15 minutes prior to the 2:00 p.m. PDT start time. The live webcast and all accompanying materials can be accessed on the Investor Relations section of the Company website at: http://investors.quotient.com/. A replay of the webcast will be available on the website following the conference call.

Use of Non-GAAP Financial Measures

Quotient reports its financial statements in accordance with generally accepted accounting principles in the United States (GAAP) and the rules of the Securities and Exchange Commission (SEC). To supplement its financial statements presented in accordance with GAAP, Quotient provides investors in this press release with non-GAAP Gross Profit, non-GAAP Gross Margin, Adjusted EBITDA, Adjusted EBITDA margin and non-GAAP Operating Expenses, each a non-GAAP financial measure. Quotient believes that these non-GAAP measures provide investors with additional useful information used by Quotient’s management and Board of Directors for financial and operating decision making. In particular, Quotient believes that the exclusion of certain income and expenses in calculating these metrics can provide useful measures for period-to-period comparisons of its core business as well as a useful comparison to peer companies.

Quotient defines non-GAAP Gross Profit as revenue less cost of revenues adjusted for stock-based compensation, amortization of acquired intangible assets, impairment of certain intangible assets, impairment of long-lived and right-of-use assets, and restructuring charges, and non-GAAP Gross Margin as non-GAAP Gross Profit divided by Revenue.

Quotient defines Adjusted EBITDA as net income (loss) adjusted for interest expense, provision for (benefit from) income taxes, other (income) expense, net, depreciation and amortization, stock-based compensation, change in fair value of contingent consideration, impairment of certain intangible assets, certain acquisition-related costs, impairment of certain long-lived and right-of-use assets, shareholder activism response costs, litigation settlements, and restructuring charges. In addition, Quotient defines Adjusted EBITDA margin as the ratio of Adjusted EBITDA and revenues; and non-GAAP operating expenses as operating expenses adjusted for stock-based compensation, amortization of acquired intangible assets, restructuring charges, acquisition related costs, impairment of certain long-lived and right-of-use assets, shareholder activism response costs, and litigation settlements.

Quotient excludes certain GAAP items from these measures because it believes these items are not indicative of ordinary results of operations and do not reflect expected future operating expenses. Additionally, certain items are inconsistent in size and frequency—making it difficult to contribute to a meaningful evaluation of Quotient's current or past operating performance.

There are a number of limitations related to the use of these non-GAAP financial measures. Quotient compensates for these limitations by providing specific information regarding the GAAP amount excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant GAAP financial measures.

These non-GAAP financial measures are not intended to be considered in isolation from, as substitute for, or as superior to the corresponding financial measure prepared in accordance with GAAP. Because of these and other limitations, the non-GAAP financial measures used in this press release should be considered along with other GAAP-based financial performance measures, including various cash flow metrics, net income (loss) and Quotient’s other GAAP financial results.

For a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP financial measures, see “Reconciliation of Net Loss to Adjusted EBITDA and Adjusted EBITDA Margin”, "Reconciliation of Gross Profit to Non-GAAP Gross Profit", "Reconciliation of Operating Expenses to Non-GAAP Operating Expenses" and “Reconciliation of Gross Profit to Non-GAAP Gross Profit (Forecasted)” included in this press release.

A reconciliation of the Adjusted EBITDA guidance metrics, which are non-GAAP guidance measures, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain (income) expense items that are excluded in calculating Adjusted EBITDA.

Forward-Looking Statements

This press release contains forward-looking statements concerning the Company’s current expectations and projections about future events and financial trends affecting its business. Forward-looking statements in this press release include the keys to the Company’s success as delivering value to customers and the consumers they serve; the Company’s belief that, given the completion of its organization realignment, the Company is well positioned to execute on its growth pillars to serve its customers, expand its reach, and deliver enhanced shareholder value; and the future financial performance of Quotient including estimates for the third quarter of 2022 and the full fiscal year 2022; Forward-looking statements are based on the Company’s current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the Company’s strategies relating to the growth of its platforms and its business, including pricing strategies; the Company’s expectations regarding the shift to digital promotions and advertising from off-line channels, and the size of the addressable market for the solutions the Company offers; the Company’s ability to adapt to CPGs and retailer's changes in marketing goals, strategies and budgets and the timing of their spending on media and promotions solutions; the rate at which transitions in the Company’s business model will occur and the expected benefits to advertisers and retail partners; the Company’s ability to successfully and timely implement changes in its business model, including transitioning the pricing of promotions offerings from cost-per-acquisition to duration-based pricing and increasing the proportion of self-service and automated solutions on the Company’s platforms; the Company’s ability to maintain and grow the size of its targetable audience; the Company’s ability to expand the use of its media and promotions offerings by consumers; the Company’s ability to innovate its consumer solutions and experiences to retain and grow its consumer base; the Company’s ability to increase revenues from CPGs already on its platforms, as well as expand its CPG base of customers; the Company’s ability to increase the number of smaller CPG advertisers that use, or desire to use, the Company’s solutions; the extent of, and duration of, the reduction in overall advertising spend by advertisers in reaction to rising inflation, supply chain disruption and economic uncertainty, and especially advertising spend reductions relating to the food vertical which comprises a significant portion of the Company’s media and promotional revenue; the Company’s ability to maintain and grow retailers in its network, increase the number of marketing distribution partners in its network, and expand its network with new verticals; the evolution of retail media networks as well as how CPGs leverage such networks; retailers increasingly bringing retail media and shopper programs in house and the Company’s ability to adapt to this evolution of retail media, and to maintain and grow retailer support for its platforms and solutions; the Company’s ability to expand the number, variety, quality, and relevance of promotions available on the Company’s platforms and through its network; the Company’s ability to grow its digital promotions business by increasing the reach of its promotions platforms, and the Company’s ability to successfully execute and expand its promotions solutions into areas such as national promotions and national rebates; and the Company’s ability to demonstrate the value of its platforms through trusted measurement metrics; the impacts of the ongoing COVID-19 pandemic, which may continue to impact the Company's business, plans and results of operations, as well as the value of the Company's common stock; the persistence of adverse changes in economic conditions such as a rise in inflation and inflationary expectations, whether as a result of the COVID-19 pandemic or otherwise, that can significantly harm demand for the Company’s marketing solutions and make it more challenging to forecast its operating results; resolution of the Company’s leveraged financial situation, including a potential refinancing of the Company’s $200 million convertible note debt obligation due December 1, 2022 and the Company’s potential utilization of the asset-based lending (ABL) facility currently available to it; and other factors identified in the Company’s filings with the SEC, including its Annual Report on Form 10-K filed with the SEC on March 1, 2022, its Form 10-K/A Amendment No. 1 filed with the SEC on April 29, 2022, its Report on Form 10-Q filed with the SEC on May 5, 2022, and future filings and reports by the Company. Quotient disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise and does not assume responsibility for the accuracy and completeness of the forward-looking statements.

About Quotient Technology Inc.

Quotient Technology (NYSE: QUOT) is a leading digital media and promotions technology company for advertisers, retailers and consumers. Quotient's omnichannel platform is powered by exclusive consumer spending data, location intelligence and purchase intent data to reach millions of shoppers daily and deliver measurable, incremental sales.

Quotient partners with leading advertisers, publishers and retailers, including Clorox, Procter & Gamble, General Mills, Unilever, CVS, Dollar General, Peapod Digital Labs, a company of Ahold Delhaize USA, Amazon and Microsoft. Quotient is headquartered in Salt Lake City, Utah, and has offices across the US as well as in Bangalore, Paris, London and Tel Aviv. For more information visit www.quotient.com.

Quotient and the Quotient logo are trademarks or registered trademarks of Quotient Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.

QUOTIENT TECHNOLOGY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
	June 30, 2022				December 31, 2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	214,942			$	237,417
Accounts receivable, net		97,078				177,216
Prepaid expenses and other current assets		21,227				19,312
Total current assets		333,247				433,945
Property and equipment, net		23,096				22,660
Operating leases right-of-use-assets		16,230				23,874
Intangible assets, net		7,781				13,003
Goodwill		128,427				128,427
Other assets		11,904				13,571
Total assets	$	520,685			$	635,480
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	28,062			$	18,021
Accrued compensation and benefits		14,007				20,223
Other current liabilities		58,450				95,279
Deferred revenues		19,036				26,778
Contingent consideration related to acquisitions		—				22,275
Convertible senior notes, net		199,611				188,786
Total current liabilities		319,166				371,362
Operating lease liabilities		24,075				26,903
Other non-current liabilities		475				522
Deferred tax liabilities		1,991				1,991
Total liabilities		345,707				400,778
Stockholders' equity:
Common stock		1				1
Additional paid-in capital		703,228				731,672
Accumulated other comprehensive loss		(1,448	)			(1,099	)
Accumulated deficit		(526,803	)			(495,872	)
Total stockholders' equity		174,978				234,702
Total liabilities and stockholders' equity	$	520,685			$	635,480

QUOTIENT TECHNOLOGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Revenues		$	69,251			$	123,880			$	147,707			$	239,196
Cost of revenues(1)			37,267				82,161				86,345				154,145
Gross profit			31,984				41,719				61,362				85,051
Operating Expenses:
Sales and marketing(1)			21,459				28,467				43,395				55,832
Research and development(1)			7,072				11,411				16,828				23,467
General and administrative(1)			42,869				15,009				65,577				27,842
Change in fair value of contingent consideration			—				242				—				527
Total operating expenses			71,400				55,129				125,800				107,668
Loss from operations			(39,416	)			(13,410	)			(64,438	)			(22,617	)
Interest expense			(1,179	)			(3,767	)			(2,333	)			(7,497	)
Other income (expense), net			(417	)			194				(381	)			(34	)
Loss before income taxes			(41,012	)			(16,983	)			(67,152	)			(30,148	)
Provision for income taxes			2,346				218				2,512				467
Net loss		$	(43,358	)		$	(17,201	)		$	(69,664	)		$	(30,615	)
Net loss per share, basic and diluted		$	(0.45	)		$	(0.18	)		$	(0.73	)		$	(0.33	)
Weighted-average shares used to compute net loss per share, basic and diluted			95,369				93,645				95,148				93,038
(1) The stock-based compensation expense included above was as follows:
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Cost of revenues		$	500			$	401			$	1,032			$	824
Sales and marketing			812				1,181				1,703				2,436
Research and development			674				977				1,641				1,949
General and administrative			15,141				3,981				18,493				7,175
Total stock-based compensation		$	17,127			$	6,540			$	22,869			$	12,384

QUOTIENT TECHNOLOGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
		Six Months Ended June 30,
		2022				2021
Cash flows from operating activities:
Net loss		$	(69,664	)		$	(30,615	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization			9,231				17,138
Stock-based compensation			22,869				12,384
Impairment of long-lived and right-of-use assets			11,448				—
Impairment of promotion service right			—				2,580
Amortization of debt discount and issuance cost			548				5,731
Allowance (recovery) for credit losses			1,222				(13	)
Deferred income taxes			—				467
Change in fair value of contingent consideration			—				527
Other non-cash expenses			3,368				1,906
Changes in operating assets and liabilities:
Accounts receivable			78,915				3,431
Prepaid expenses and other assets			(2,031	)			2,467
Accounts payable and other liabilities			(28,944	)			(1,670	)
Payments for contingent consideration and bonuses			(19,008	)			(2,901	)
Accrued compensation and benefits			(6,283	)			119
Deferred revenues			(7,741	)			5,950
Net cash (used in) provided by operating activities			(6,070	)			17,501
Cash flows from investing activities:
Purchases of property and equipment			(8,161	)			(6,426	)
Net cash used in investing activities			(8,161	)			(6,426	)
Cash flows from financing activities:
Proceeds from issuances of common stock under stock plans			824				14,794
Payments for taxes related to net share settlement of equity awards			(3,499	)			(4,110	)
Principal payments on promissory note and finance lease obligations			(98	)			(167	)
Payments for contingent consideration			(5,686	)			(6,121	)
Net cash (used in) provided by financing activities			(8,459	)			4,396
Effect of exchange rates on cash and cash equivalents			215				76
Net (decrease) increase in cash and cash equivalents			(22,475	)			15,547
Cash and cash equivalents at beginning of period			237,417				222,752
Cash and cash equivalents at end of period		$	214,942			$	238,299

QUOTIENT TECHNOLOGY INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(Unaudited, in thousands)
	Three Months Ended June 30,														Six Months Ended June 30,
	2022							2021							2022							2021
Net Loss ($) / Loss Margin (%) (2)	$	(43,358	)		(63	) %		$	(17,201	)		(14	) %		$	(69,664	)		(47	) %		$	(30,615	)		(13	) %
Adjustments:
Stock-based compensation		17,127			25	%			6,540			5	%			22,869			15	%			12,384			5	%
Depreciation and amortization		4,670			7	%			7,707			6	%			9,231			6	%			17,138			7	%
Acquisition related costs and other(1)		16,349			24	%			3,251			3	%			23,970			16	%			3,733			2	%
Change in fair value of contingent consideration		—			—	%			242			—	%			—			—	%			527			—	%
Interest expense		1,179			2	%			3,767			3	%			2,333			2	%			7,497			3	%
Other income (expense), net		417			—	%			(194	)		—	%			381			—	%			34			—	%
Provision for income taxes		2,346			3	%			218			—	%			2,512			2	%			467			—	%
Total adjustments	$	42,088			61	%		$	21,531			17	%		$	61,296			41	%		$	41,780			17	%
Adjusted EBITDA ($) / Adjusted EBITDA Margin (%) (2)	$	(1,270	)		(2	) %		$	4,330			3	%		$	(8,368	)		(6	) %		$	11,165			5	%

(1) For the three and six months ended June 30, 2022, Other includes a charge of $5.3 million and $11.4 million, respectively, related to the impairment of certain long-lived and right-of-use assets; $3.7 million and $5.1 million, respectively, related to shareholder activism response costs; $4.8 million in both respective periods related to litigation settlements; and $2.6 million and $2.7 million, respectively, related to restructuring charges. For the three and six months ended June 30, 2021, Other includes a charge of $2.6 million related to the impairment of a promotion service right, as well as restructuring charges of $0.2 million, for both respective periods. Acquisition related costs primarily include certain bonuses contingent upon the acquired company meeting certain financial metrics over the contingent consideration period and diligence, accounting, and legal expenses incurred related to certain acquisitions. Restructuring charges relate to severance for impacted employees.

(2) Profit (Loss) Margin and Adjusted EBITDA Margin is the ratio of Profit (Loss) to Revenues and Adjusted EBITDA to Revenues.

QUOTIENT TECHNOLOGY INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(Unaudited, in thousands)
	Q2 FY 21		Q3 FY 21		Q4 FY 21		Q1 FY 22		Q2 FY 22
Net loss	$ (17,201)		$ (7,843)		$ (7,110)		$ (26,306)		$ (43,358)
Adjustments:
Stock-based compensation	6,540		4,690		5,738		5,742		17,127
Depreciation and amortization	7,707		7,287		5,039		4,561		4,670
Acquisition related costs and other (1)	3,251		8,720		1,980		7,621		16,349
Change in fair value of contingent consideration	242		245		620		—		—
Interest expense	3,767		3,809		3,871		1,154		1,179
Other (income) expense, net	(194)		96		80		(36)		417
Provision for income taxes	218		323		2,841		166		2,346
Total adjustments	$ 21,531		$ 25,170		$ 20,169		$ 19,208		$ 42,088
Adjusted EBITDA (1)	$ 4,330		$ 17,327		$ 13,059		$ (7,098)		$ (1,270)
Adjusted EBITDA Margin (2)	3 %		13 %		9 %		(9) %		(2) %

(1) Adjusted EBITDA, a non-GAAP financial measure, is net loss adjusted for stock-based compensation, depreciation and amortization, change in fair value of contingent consideration, interest expense, other (income) expense, net, provision for income taxes, and acquisition related costs and other, which includes: charge of $2.6 million related to the impairment of a promotion service right and restructuring charges of $0.2 million during Q2 FY21; charge of $6.5 million related to the impairment of certain intangible assets and restructuring charges of $1.8 million during Q3 FY21; shareholder activism response costs of $0.9 million and restructuring charges of $0.7 million during Q4 FY21; charge of $6.1 million related to the impairment of certain long-lived and right-of-use assets, $1.4 million related to shareholder activism response costs, and $0.1 million related to restructuring charges during Q1 FY22; charge of $4.8 million related to litigation settlements; $5.3 million related to the impairment of certain long-lived and right-of-use assets, $3.7 million related to shareholder activism response costs, and restructuring charges of $2.6 million during Q2 FY22.

(2) Adjusted EBITDA margin is the ratio of Adjusted EBITDA and Revenues.

QUOTIENT TECHNOLOGY INC.
RECONCILIATION OF GROSS PROFIT TO NON-GAAP GROSS PROFIT
(Unaudited, in thousands)
		Q2 FY 21				Q1 FY 22				Q2 FY 22
Revenues		$	123,880			$	78,456			$	69,251
Cost of revenues (GAAP)		$	82,161			$	49,078			$	37,267
(less) Stock-based compensation			(401	)			(532	)			(500	)
(less) Amortization of acquired intangible assets			(5,276	)			(2,294	)			(2,219	)
(less) Impairment of certain intangible assets			(2,580	)			—				—
(less) Impairment of certain long-lived and right-of-use assets			—				—				(1,434	)
(less) Restructuring charges			—				(13	)			(75	)
Cost of revenues (Non-GAAP)		$	73,904			$	46,239			$	33,039
Gross profit (GAAP)		$	41,719			$	29,378			$	31,984
Gross margin percentage (GAAP)			33.7	%			37.4	%			46.2	%
Gross profit (Non-GAAP)*		$	49,976			$	32,217			$	36,212
Gross margin percentage (Non-GAAP)			40.3	%			41.1	%			52.3	%

* Non-GAAP gross profit excludes stock-based compensation, amortization of acquired intangible assets, impairment of certain intangible assets, impairment of long-lived and right-of-use assets and restructuring charges.

QUOTIENT TECHNOLOGY INC.
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
		Q2 FY 21				Q3 FY 21				Q4 FY 21				Q1 FY 22				Q2 FY 22
Revenues		$	123,880			$	135,884			$	146,414			$	78,456			$	69,251
Sales and marketing expenses			28,467				29,401				27,030				21,936				21,459
(less) Stock-based compensation			(1,181	)			(1,411	)			(1,165	)			(891	)			(812	)
(less) Amortization of acquired intangible assets			(866	)			(837	)			(637	)			(354	)			(354	)
(less) Restructuring charges			(217	)			(903	)			(328	)			3				(131	)
Non-GAAP Sales and marketing expenses		$	26,203			$	26,250			$	24,900			$	20,694			$	20,162
Non-GAAP Sales and marketing percentage			21	%			19	%			17	%			26	%			29	%
Research and development			11,411				11,074				10,400				9,756				7,072
(less) Stock-based compensation			(977	)			(1,076	)			(851	)			(967	)			(674	)
(less) Restructuring charges			—				(463	)			(106	)			3				(170	)
Non-GAAP Research and development expenses		$	10,434			$	9,535			$	9,443			$	8,792			$	6,228
Non-GAAP Research and development percentage			8	%			7	%			6	%			11	%			9	%
General and administrative expenses			15,009				12,244				16,690				22,708				42,869
(less) Stock-based compensation			(3,981	)			(1,678	)			(3,166	)			(3,352	)			(15,141	)
(less) Restructuring charges			—		—		(463	)			(83	)			(45	)			(2,240	)
(less) Acquisition related costs			(453	)			(380	)			(381	)			—				—
(less) Impairment of long-lived and right-of-use assets			—				—				—				(6,119	)			(3,895	)
(less) Shareholder activism response costs			—				—				(925	)			(1,450	)			(3,654	)
(less) Litigation settlements			—				—				—				—				(4,750	)
Non-GAAP General and administrative expenses		$	10,575			$	9,723			$	12,135			$	11,742			$	13,189
Non-GAAP General and administrative percentage			9	%			7	%			8	%			15	%			19	%
Non-GAAP Operating expenses*		$	47,212			$	45,508			$	46,478			$	41,228			$	39,579
Non-GAAP Operating expense percentage			38	%			33	%			32	%			53	%			57	%

* Non-GAAP operating expenses excludes stock-based compensation, amortization of acquired intangible assets, restructuring charges, acquisition related costs, impairment of certain long-lived and right-of-use assets, shareholder activism response costs and litigation settlements.

QUOTIENT TECHNOLOGY INC.
RECONCILIATION OF GROSS PROFIT TO NON-GAAP GROSS PROFIT (FORECASTED)
(Unaudited, in thousands)
		Q3 FY 22 (Forecast)								FY22 (Forecast)
		Low				High				Low				High
Revenues		$	70,000			$	80,000			$	295,000			$	310,000
Cost of revenues (GAAP)		$	37,700			$	42,800			$	154,100			$	159,200
(less) Stock-based compensation			(400	)			(500	)			(900	)			(1,000	)
(less) Amortization of acquired intangible assets			(2,300	)			(2,300	)			(3,200	)			(3,200	)
Cost of revenues (Non-GAAP)		$	33,000			$	38,000			$	148,000			$	150,000
Gross margin (GAAP)		$	32,300			$	37,200			$	140,900			$	150,800
Gross margin (Non-GAAP)		$	37,000			$	42,000			$	147,000			$	160,000

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220809005930/en/

Investor Relations: IR@quotient.com

Source: Quotient Technology Inc.

FAQ

What were Quotient's Q2 2022 earnings?

Quotient reported Q2 2022 revenue of $69.3 million, down 44% from the previous year.

What was Quotient's net loss for Q2 2022?

The net loss for Q2 2022 was $43.4 million.

How did Quotient's gross margin change in Q2 2022?

Quotient's gross margin improved to 46.2% in Q2 2022, compared to 33.7% in Q2 2021.

What is Quotient's revenue guidance for Q3 2022?

Quotient expects Q3 2022 revenue to range between $70 million and $80 million.

What adjustments were made to Quotient's EBITDA in Q2 2022?

Quotient reported an adjusted EBITDA loss of $1.3 million for Q2 2022.