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| Blackboard Inc. Reports Third Quarter Revenue of $98.4 Million |
Total revenue for the quarter ended GAAP net income was Additional Financial Highlights from the Third Quarter of 2009
-- Total cash flow from operations was
-- Cash and cash equivalents were
"We are pleased with our financial results in the third quarter which exceeded our prior guidance. Cash flow from operations during the quarter was a record for the Company, driven by our strong renewal rates during our peak renewal quarter," said Highlights from the Third Quarter of 2009
-- A few of Blackboard's new and expanded client relationships in the
quarter included:
-- U.S. Higher Education:
-- Blackboard announced the launch of the Blackboard Mobile platform.
Blackboard
Outlook for the Fourth Quarter and Full Year of 2009 Fourth Quarter of 2009:
-- Revenue of
Full Year 2009:
-- Revenue of
Conference Call Blackboard will broadcast its third quarter conference call live over the Internet today beginning at A replay of the call will be available via telephone at approximately
BLACKBOARD INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30
------------ ------------
2008 2009 2008 2009
---- ---- ---- ----
Revenues:
Product $74,332 $87,862 $205,818 $251,369
Professional services 8,758 10,546 21,295 25,597
----- ------ ------ ------
Total revenues 83,090 98,408 227,113 276,966
Operating expenses:
Cost of product revenues,
excludes
BLACKBOARD INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, September 30,
2008 2009
---- ----
(in thousands,
except per share amounts)
ASSETS
Current assets:
Cash and cash equivalents $141,746 $132,049
Accounts receivable, net 92,529 93,018
Inventories 1,783 2,140
Prepaid expenses and other current assets (6) 8,361 12,235
Deferred tax asset, current portion 1,796 5,255
Deferred cost of revenues 7,126 7,609
----- -----
Total current assets 253,341 252,306
Deferred tax asset, noncurrent portion (6) 18,897 9,067
Investment in common stock warrant 1,990 3,124
Restricted cash 4,249 4,139
Property and equipment, net 31,950 36,286
Other assets 549 936
Goodwill and intangible assets, net 338,976 409,873
------- -------
Total assets $649,952 $715,731
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,579 $5,524
Accrued expenses 27,879 35,880
Deferred rent, current portion 345 975
Deferred revenues, current portion 179,238 200,472
------- -------
Total current liabilities 210,041 242,851
Notes payable, net of debt discount (6) 149,923 154,612
Deferred rent, noncurrent portion 10,959 11,674
Deferred revenues, noncurrent portion 5,554 6,536
Stockholders' equity:
Common stock, $0.01 par value 314 322
Additional paid-in capital (6) 356,683 383,060
Accumulated deficit (6) (83,522) (83,324)
------- -------
Total stockholders' equity 273,475 300,058
------- -------
Total liabilities and stockholders'
equity $649,952 $715,731
======== ========
(6) As noted in footnote (2) above, ASC 470-20 required restatement of
prior periods. Prepaid expenses and other current assets, Deferred tax
assets - noncurrent portion, Notes payable, Additional paid-in capital,
and Accumulated deficit have been adjusted accordingly and were
previously reported as
BLACKBOARD INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30
------------
2008 2009
---- ----
(in thousands)
Cash flows from operating activities
Net (loss) income (7) $(3,693) $198
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Deferred income tax benefit (6,094) (2,455)
Excess tax benefits from stock-based compensation (1,903) (763)
Amortization of debt discount (7) 4,777 4,689
Depreciation and amortization 11,642 14,045
Amortization of intangibles resulting from
acquisitions 28,137 25,728
Patent related impairment charge - 7,447
Change in allowance for doubtful accounts 245 1,233
Stock-based compensation 11,111 11,984
Gain on investment in common stock warrant (3,980) (1,136)
Changes in operating assets and liabilities:
Accounts receivable (41,818) 987
Inventories 59 (357)
Prepaid expenses and other current assets (7) (2,545) (3,319)
Deferred cost of revenues (6) (483)
Accounts payable (2,027) 2,885
Accrued expenses 1,006 8,780
Deferred rent 8,575 1,345
Deferred revenues 51,932 19,002
------ ------
Net cash provided by operating activities 55,418 89,810
Cash flows from investing activities
Purchases of property and equipment (22,297) (15,919)
Payments for patent enforcement costs (3,141) (414)
Purchase of available-for-sale investments - (6,586)
Redemptions of available-for-sale investments - 6,586
Proceeds from common stock warrant 1,990 -
Acquisitions, net of cash acquired (132,992) (91,784)
-------- -------
Net cash used in investing activities (156,440) (108,117)
Cash flows from financing activities
Payments on letters of credit (127) -
Release of letters of credit 777 110
Excess tax benefits from stock-based compensation 1,903 763
Proceeds from exercise of stock options 10,657 7,737
------ -----
Net cash provided by financing activities 13,210 8,610
------ -----
Net decrease in cash and cash equivalents (87,812) (9,697)
Cash and cash equivalents at beginning of period 206,558 141,746
------- -------
Cash and cash equivalents at end of period $118,746 $132,049
======== ========
(7) As noted in footnote (2) above, ASC 470-20 required restatement
of prior periods. Net loss, Amortization of debt discount, and
Prepaid expenses and other current assets have been adjusted
accordingly and were previously reported as
About Any statements in this press release about future expectations, plans and prospects for Blackboard and other statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the factors discussed in the "Risk Factors" section of our Form 10-Q filed on Use of Non-GAAP Financial Measures This release includes information about the Company's non-GAAP adjusted net income and non-GAAP adjusted net income per share, which are non-GAAP financial measures. Management believes that both measures, which exclude the amortization or impairment of intangible assets, stock-based compensation, and non-cash interest expense, provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations and aspects of current operating performance that can be effectively managed. Because the Company has historically reported these non-GAAP results to the investment community, management also believes the inclusion of these non-GAAP financial measures provides enhanced comparability in its financial reporting and facilitates investors' understanding of the Company's historic operating trends by providing an additional basis for comparisons to prior periods. In addition, the Company's internal reporting, including information provided to the Company's Audit Committee and Board of Directors, contains non-GAAP measures. The Company has also adopted internal compensation metrics that are determined on a basis that excludes amortization of acquired intangibles and the associated tax impact, and in 2009 also excludes stock-based compensation expense, non-cash patent related impairment charges, non-cash interest expense and other items as determined by the Board of Directors. A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable with similar non-GAAP financial measures used by other companies. The Company compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliation to the most directly comparable GAAP financial measure which investors can use to appropriately consider each financial measure determined under GAAP as well as on the adjusted non-GAAP basis. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition to the information contained in this release, investors should also review information contained in the Company's Form 10-Q dated SOURCE For Financial Media and Investors: Michael J. Stanton, Senior Vice President, Investor Relations, Blackboard Inc., +1-202-463-4860 ext. 2305, Staci Strauss Mortenson, Senior Vice President, ICR, +1-203-682-8273; For Education & General Media: Matthew Maurer, Director, Public Relations, Blackboard Inc., +1-202-463-4860 ext. 2637, matthew.maurer@blackboard.com |
