AutoWeb Reports First Quarter 2019 Results
First Quarter 2019 Financial Summary
- Total revenues were
$31.6 millioncompared to $32.3 millionin Q4’18 and $32.3 millionin Q1’18.
- Advertising revenues were
$5.9 millioncompared to $6.5 millionin Q4’18 and $8.1 millionin Q1’18.
- Net loss was
$5.4 millionor $(0.41)per share, compared to a net loss of $5.3 millionor $(0.41)per share in Q4’18 and a net loss of $10.3 millionor $(0.81)per share in Q1’18.
- Non-GAAP loss was
$3.5 millionor $(0.27)per share, compared to a non-GAAP loss of $3.1 millionor $(0.24)per share in Q4’18 and non-GAAP loss of $0.9 millionor $(0.07)per share in Q1’18.
- Adjusted EBITDA was
$(3.0) millioncompared to $(2.6) millionin Q4'18 and $(0.3) millionin Q1'18.
First Quarter 2019 Key Operating Metrics
- Lead traffic was 37.5 million visits compared to 32.1 million in Q4’18 and 39.9 million in Q1’18.1
- Lead volume was 2.1 million compared to 2.0 million in Q4’18 and 1.8 million in Q1’18.2
- Retail dealer count was 2,360 compared to 2,596 in Q4’18 and 2,744 in Q1’18.3
- Retail lead capacity was 426,000 lead targets compared to 442,000 in Q4’18 and 487,000 in Q1’18.4
- Click traffic was 10.1 million visits compared to 6.1 million in Q4’18 and 7.4 million in Q1’18. 5
- Click volume was 7.0 million clicks compared to 6.6 million in Q4’18 and 8.2 million in Q1’18.6
- Revenue per click was
$0.72compared to $0.81in Q4’18 and $0.82in Q1’18.7
1Lead traffic = total visits to AutoWeb’s owned lead websites.
2Lead volume = total new and used vehicle leads invoiced to retail and wholesale customers.
3Retail dealer count = the number of franchised dealers contracted for delivery of retail new vehicle leads plus the number of vehicle dealers (franchised or independent) contracted for delivery of retail used vehicle leads.
4Retail lead capacity = the sum of the number of new and used vehicle leads contracted for by new or used retail vehicle dealers that the dealers wish to receive each month (i.e., “targets”) during the applicable quarter.
5Click traffic = total visits to AutoWeb’s owned click referral websites.
6Click Volume = the number of times during the applicable quarter that consumers clicked on advertisements on AutoWeb’s click referral websites.
7Revenue per click = total click revenue divided by click volume.
“Q1 was highlighted by our first sequential quarter of gross margin expansion since Q4 2016, which is a reflection of our improved channel mix and traffic acquisition strategies,” said
“With the establishment of our full executive team during the first quarter, each leader has begun to refine and add talent to their respective teams. We remain keenly focused on restructuring our fixed operating model to become a leaner, more profitable organization. In fact, in April we began to transition technology and development capabilities and related positions out of
“Also subsequent to the quarter, we established a new
“As we look ahead, we expect to continue providing measurable value to our clients, be it through leads, clicks, emails or fully bundled solutions with detailed attribution. We also expect to continue focusing on our various strategic initiatives and look forward to delivering on our goal of returning to growth and profitability in 2019.”
First Quarter 2019 Financial Results
Total revenues in the first quarter of 2019 were
Gross profit in the first quarter was
Total operating expenses in the first quarter were
Net loss in the first quarter of 2019 was
Non-GAAP loss was
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Tax Benefit Preservation Plan
The Plan was adopted by the company’s board of directors to preserve the company’s NOLs and other tax attributes, and thus reduce the risk of a possible change of ownership under Section 382 of the Internal Revenue Code. Any such change of ownership under Section 382 would limit or eliminate the ability of the company to use its existing NOLs for federal income tax purposes. In general, an ownership change will occur if the company’s 5% shareholders, for purposes of Section 382, collectively increase their ownership in the company by an aggregate of more than 50 percentage points over a rolling three-year period. The Plan is designed to reduce the likelihood that the company experiences such an ownership change by discouraging any person or group from becoming a new 5% shareholder under Section 382. Rights issued under the Plan could be triggered upon the acquisition by any person or group of 4.9% or more of the company’s outstanding common stock and could result in substantial dilution of the acquirer’s percentage ownership in the company. There is no guarantee that the Plan will achieve the objective of preserving the value of the company’s NOLs.
Investors and other interested parties can receive
Note about Non-GAAP Financial Measures
The company's management believes that presenting non-GAAP loss, non-GAAP EPS, and Adjusted EBITDA provides useful information to investors regarding the underlying business trends and performance of the company's ongoing operations, as well as providing for more consistent period-over-period comparisons. These non-GAAP measures also assist management in its operational and financial decision-making and monitoring the company’s performance. In addition, we use Adjusted EBITDA as a measure for determining incentive compensation targets. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the company's consolidated financial statements in their entirety and to not rely on any single financial measure.
Forward-Looking Statements Disclaimer
The statements contained in this press release or that may be made during the conference call described above that are not historical facts are forward-looking statements under the federal securities laws. Words such as “anticipates,” “could,” “may,” “estimates,” “expects,” “projects,” “intends,” “pending,” “plans,” “believes,” “will” and words of similar substance, or the negative of those words, used in connection with any discussion of future operations or financial performance identify forward-looking statements. In particular, statements regarding expectations and opportunities, new product expectations and capabilities, projections, statements regarding future events, and our outlook regarding our performance and growth are forward-looking statements. These forward-looking statements, including, that (i) the company believes that the next phase of its turnaround will enable the company to further transform its business to deliver both revenue growth and margin expansion in 2019: (ii) the company’s expectation that the transition of Company personnel to other offices to take advantage of lower costs within its technology and product teams, along with closing its
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|UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|(Amounts in thousands, except share and per share data)
|March 31||December 31|
|Cash and cash equivalents||$||10,733||$||13,600|
|Accounts receivable, net of allowances for bad debts and customer credits of $571 and $566 at March 31, 2019 and December 31, 2018, respectively||23,085||26,898|
|Prepaid expenses and other current assets||1,181||1,245|
|Total current assets||34,999||41,743|
|Property and equipment, net||2,809||3,181|
|Intangibles assets, net||10,618||11,976|
|LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY|
|Accrued employee-related benefits||1,934||3,125|
|Other accrued expenses and other current liabilities||1,296||2,204|
|Current portion of lease liabilities||1,626||-
|Current convertible note payable||-
|Total current liabilities||21,405||23,901|
|Lease liabilities, net of current portion||2,298||-
|Commitments and contingencies|
|Preferred stock, $0.001 par value; 11,445,187 shares authorized|
|Series A Preferred stock, none issued and outstanding||-
|Common stock, $0.001 par value; 55,000,000 shares authorized;|
|13,116,462 and 12,960,450 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively||13||13|
|Additional paid-in capital||362,076||361,218|
|Total stockholders' equity||29,013||33,515|
|Total liabilities, minority interest and stockholders' equity||$||52,716||$||57,416|
|UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|AND COMPREHENSIVE LOSS|
|(Amounts in thousands, except share and per share data)|
|Three Months Ended|
|Cost of revenues||25,847||24,659|
|Sales and marketing||2,878||3,712|
|General and administrative||4,290||4,575|
|Depreciation and amortization||1,239||1,160|
|Total operating expenses||11,187||17,965|
|Interest and other income (expense), net||70||-
|Loss before income tax provision||(5,360||)||(10,275||)|
|Income taxes provision||-||4|
|Net loss and comprehensive loss||$||(5,360||)||$||(10,279||)|
|Basic and diluted loss per share:|
|Basic loss per common share||$||(0.41||)||$||(0.81||)|
|Diluted loss per common share||$||(0.41||)||$||(0.81||)|
|Shares used in computing net loss per share:|
|RECONCILIATION OF NON-GAAP LOSS / EPS|
|(Amounts in thousands, except per-share data)|
|Three Months Ended|
|March 31, 2019||December 31, 2018||March 31, 2018|
|Amortization of acquired intangibles||1,357||1,511||1,687|
|Non-cash stock based compensation:|
|Cost of revenues||-||1||15|
|Sales and marketing||72||78||225|
|General and administrative||438||387||1,234|
|Total non-cash stock-based compensation||551||501||1,626|
|Weighted average diluted shares||12,925||12,892||12,617|
|Diluted GAAP EPS||$||(0.41||)||$||(0.41||)||$||(0.81||)|
|Diluted impact of adjustments||0.14||0.17||0.74|
|Diluted Non-GAAP EPS||$||(0.27||)||$||(0.24||)||$||(0.07||)|
|RECONCILIATION OF ADJUSTED EBITDA|
|(Amounts in thousands)|
|Three Months Ended
|March 31, 2019||December 31, 2018||March 31, 2018|
|Depreciation and amortization||1,787||2,010||2,179|
|Non-cash stock compensation expense||551||501||1,626|
Source: AutoWeb, Inc.