8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

August 4, 2014

 

 

Qualys, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35662   77-0534145

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

1600 Bridge Parkway

Redwood City, California 94065

(Address of principal executive offices, including zip code)

(650) 801-6100

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On August 4, 2014, Qualys, Inc. (“Qualys”) issued a press release announcing its financial results for the quarter ended June 30, 2014. In the press release, Qualys also announced that it would be holding a conference call on August 4, 2014 to discuss its financial results for the quarter ended June 30, 2014. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit
No.

  

Description

99.1    Press release issued by Qualys, Inc. dated August 4, 2014.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  QUALYS, INC.
By:  

/s/ Philippe F. Courtot

 

Philippe F. Courtot

Chairman, President and Chief Executive Officer

Date: August 4, 2014


EXHIBIT INDEX

 

Exhibit
No.

  

Description

99.1    Press release issued by Qualys, Inc. dated August 4, 2014.
EX-99.1

Exhibit 99.1

 

LOGO    Investors:    Media:
   Don McCauley    John Christiansen/Stacy Roughan
   Chief Financial Officer    Sard Verbinnen & Co
   Qualys, Inc.    +1 (415) 618-8750/+1 (310) 201-2040
   +1 (650) 801-6181    jchristiansen@sardverb.com/sroughan@sardverb.com
   dmccauley@qualys.com   
     
     

QUALYS ANNOUNCES SECOND QUARTER 2014 FINANCIAL RESULTS

Revenue Growth of 23% Year-Over-Year

GAAP EPS of $0.05, Non-GAAP EPS of $0.11

Full-Year 2014 Guidance Raised for Revenues, GAAP EPS, Non-GAAP EPS

REDWOOD CITY, CA – August 4, 2014 – Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of cloud security and compliance solutions, today announced financial results for the second quarter ended June 30, 2014. For the quarter, the Company reported revenues of $32.3 million, GAAP net income of $1.7 million, non-GAAP net income of $4.2 million, adjusted EBITDA of $7.2 million, GAAP earnings per diluted share of $0.05, and non-GAAP earnings per diluted share of $0.11.

Philippe Courtot, Chairman, President and Chief Executive Officer of Qualys, said, “Our second quarter 2014 results represent the strongest quarterly performance Qualys has ever delivered, driven by high demand for our cloud security and compliance solutions which resulted in record revenue growth and profit. We particularly benefited from increased upsell opportunities from our existing customers as they looked either to expand their vulnerability management scope or to acquire new services to address their global security needs in an effort to prevent increasingly sophisticated and complex cyber-attacks from compromising their critical assets. We continue to accelerate our investments in core technologies and new cloud offerings to help us grow our revenues and increase value to our customers, partners and shareholders. As a result of this continued growth in our business, we are raising our median revenue growth guidance to 22% for 2014 compared to the prior year.”

Second Quarter 2014 Financial Highlights

Revenues: Revenues for the second quarter of 2014 increased by 23% to $32.3 million compared to $26.3 million for the same quarter last year. Revenue growth was driven by a combination of sales of subscriptions to new customers, as well as subscription renewals and upsells of additional subscriptions to existing customers.

Deferred Revenues: Current deferred revenues increased by 22% to $71.9 million at June 30, 2014 compared to $58.8 million at June 30, 2013. Total deferred revenues increased by 19% to $80.6 million at June 30, 2014 compared to $67.7 million at June 30, 2013.


Gross Profit: GAAP gross profit for the second quarter of 2014 increased by 23% to $25.1 million compared to $20.4 million for the same quarter last year. GAAP gross margin was 78% for the second quarter of 2014, compared to 77% in the prior year’s second quarter. Non-GAAP gross profit for the second quarter of 2014 increased by 23% to $25.3 million compared to $20.5 million for the same quarter last year. Non-GAAP gross margin was 78% for the second quarter of 2014, the same percentage as in the prior year.

Operating Income: GAAP operating income for the second quarter of 2014 was $1.8 million compared to $0.9 million in the same quarter last year. Non-GAAP operating income for the second quarter of 2014 was $4.3 million compared to $2.1 million for the same quarter last year.

Net Income: GAAP net income for the second quarter of 2014 was $1.7 million, or $0.05 per diluted share, compared to net income of $0.9 million, or a $0.02 per diluted share, for the same quarter last year. Non-GAAP net income for the second quarter of 2014 was $4.2 million, or $0.11 per diluted share, compared to non-GAAP net income of $2.1 million, or a $0.06 per diluted share, for the same quarter last year.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2014 increased by 62% to $7.2 million compared to $4.5 million for the same quarter last year. As a percentage of revenues, adjusted EBITDA increased to 22% for the second quarter of 2014 compared to 17% for the same quarter last year.

Second Quarter 2014 Business Highlights

Customers:

 

    New customers included: Albemarle Corporation, BARCO, Blue Cross Blue Shield of Nebraska and Tennessee, CMS Energy Corporation, FireEye, LeasePlan Corporation N.V., Lloyds Register, Markel Corporation, NASDAQ, Office Depot, Philips Electronics UK Ltd, Reed Smith, Travelport, LP and Ziff Davis.

New Products and Functionalities:

During the second quarter of 2014, Qualys released several new products and enhancements, including:

 

    Expanded Qualys Continuous Monitoring solution with the ability to seamlessly integrate vulnerability alerts into incident response systems such as HP Arcsight and Splunk, empowering organizations to proactively address critical vulnerabilities in their perimeter by providing information to first responders. This allows customers to immediately mitigate risk within their global perimeter. Qualys is showcasing these new capabilities for Continuous Monitoring at Black Hat USA 2014 August 6-7, 2014 in Las Vegas.

 

    Released the “Multi-Scan” feature enhancement to Qualys Web Application Scanning which enables customers to perform high volume and fully automated web application scanning across their complete web applications portfolio.

 

    Released a new map, or network discovery, function in Qualys Vulnerability Management with the ability to search the network for active assets, discover the relationships between interconnected networks, and help ensure that newly discovered assets are authorized and regularly assessed.

 

    Released the new Qualys Enterprise Scanner Appliance with higher performance and parallelization capabilities allowing customers to increase scanning speed for enterprise networks. The new scanner also allows customers to scan air-gap networks, a key requirement for government and defense customers.


    Introduced Qualys Policy Compliance support for new regulations to address a wide spectrum of recommendations helping financial institutions adhere to recent Internet Banking Technology Risk Management guidelines all over the world.

Industry Recognition:

 

    Honored by SC Magazine as Best Risk/Policy Management Solution for Qualys Policy Management Solution.

 

    Recognized by Gartner as a formidable challenger in the 2014 Magic Quadrant for Application Security Testing for Qualys Web Application Solution.

Strategic Alliances and Partnerships:

 

    Joined the Open Web Application Security Project (OWASP) as the first Premier Corporate Member. OWASP is an open community of over 42,000 participants dedicated to enabling organizations to conceive, develop, acquire, operate and maintain applications that can be trusted.

 

    Joined forces with the Council on CyberSecurity to help promote the adoption of cyber-security best practices.

Financial Performance Outlook

Third Quarter 2014 Guidance: Management expects revenues to be in the range of $33.5 million to $34.0 million. At the midpoint, this represents 22% growth over third quarter 2013 revenues. GAAP net income per diluted share is expected to be in the range of $0.02 to $0.04 and non-GAAP net income per diluted share is expected to be in the range of $0.08 to $0.10 based on approximately 37.3 million weighted average diluted shares outstanding for the quarter.

Full Year 2014 Guidance: Management expects revenues to be in the range of $131.0 million to $132.0 million, an increase from the previous revenue guidance range of $128.5 million to $130.5 million. At the midpoint, this represents 22% growth over 2013 revenues, an increase from the 20% midpoint of the previous revenue guidance range. GAAP net income per diluted share is expected to be in the range of $0.04 to $0.08, an increase from the previous GAAP EPS guidance range of ($0.06) to ($0.02.) Non-GAAP net income per diluted share is expected to be in the range of $0.30 to $0.34, an increase from the previous Non-GAAP EPS guidance range of $0.22 to $0.26. Full year EPS estimates are based on approximately 37.4 million weighted average diluted shares outstanding for the full year.

Investor Conference Call

Qualys will host a conference call and live webcast to discuss its second quarter 2014 financial results today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access the conference call, dial (877) 881-2609 in the U.S. or +1 (970) 315-0463 for international participants with conference ID #67211124. The live webcast of Qualys’ earnings conference call can also be accessed at investor.qualys.com. A replay of the conference call will be available through the same webcast link following the end of the call.


About Qualys, Inc.

Qualys, Inc. (NASDAQ: QLYS) is a pioneer and leading provider of cloud security and compliance solutions with over 6,700 customers in more than 100 countries, including a majority of each of the Forbes Global 100 and Fortune 100. The Qualys Cloud Platform and integrated suite of solutions help organizations simplify security operations and lower the cost of compliance by delivering critical security intelligence on demand and automating the full spectrum of auditing, compliance and protection for IT systems and web applications. Founded in 1999, Qualys has established strategic partnerships with leading managed service providers and consulting organizations including Accenture, Accuvant, BT, Cognizant Technology Solutions, Dell SecureWorks, Fujitsu, HCL Comnet, InfoSys, NTT, Tata Communications, Verizon and Wipro. The company is also a founding member of the Cloud Security Alliance (CSA) and the Council on CyberSecurity. For more information, please visit www.qualys.com.

Qualys and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to: our plans for continued investments in core technologies and new cloud offerings and the intended benefits of these investments; the expected functionality and benefits of our solutions; our belief that we will continue to gain new customer adoption of our core Vulnerability Management solution, our Web Application Scanning solution and our Policy Compliance solution and expand our platform among existing customers; our expectations regarding bringing new capabilities and solutions to market in 2014; our belief that we will continue to leverage our cloud platform to grow revenues and increase value to our customers and shareholders; our belief that customers will increasingly adopt our Web Application Scanning and Policy Compliance solutions; our expectation that our Continuous Monitoring and Web Application Firewall solutions will be adopted by our customers on an accelerated basis; our guidance for revenues, GAAP EPS and non-GAAP EPS for the third quarter and full year 2014; and our expectations for the number of weighted average diluted shares outstanding for the third quarter and full year 2014. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; our ability to retain existing customers and generate new customers; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed with the Securities and Exchange Commission on May 8, 2014. The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.


Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Qualys monitors non-GAAP measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA.

Qualys also monitors non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA to evaluate its ongoing operational performance and enhance an overall understanding of its past financial performance. Qualys believes that these non-GAAP metrics help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses, as well as the related tax effects, that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income , non-GAAP net income per diluted share and adjusted EBITDA. Furthermore, Qualys uses these measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys also believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2014     2013     2014     2013  

Revenues

   $ 32,302      $ 26,291      $ 62,658      $ 51,174   

Cost of revenues (1)

     7,175        5,924        14,021        11,719   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     25,127        20,367        48,637        39,455   

Operating expenses:

        

Research and development (1)

     6,411        5,291        12,815        10,588   

Sales and marketing (1)

     11,845        10,160        24,337        20,328   

General and administrative (1)

     5,081        4,053        9,956        7,949   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     23,337        19,504        47,108        38,865   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     1,790        863        1,529        590   

Other income (expense), net:

        

Interest expense

     (3     (12     (7     (30

Interest income

     130        81        238        158   

Other income (expense), net

     (37     33        (138     (286
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     90        102        93        (158
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     1,880        965        1,622        432   

Provision for income taxes

     174        92        356        162   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 1,706      $ 873      $ 1,266      $ 270   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share:

        

Basic

   $ 0.05      $ 0.03      $ 0.04      $ 0.01   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.05      $ 0.02      $ 0.03      $ 0.01   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in computing net income per share:

        

Basic

     32,818        31,777        32,668        31,636   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     36,839        35,393        36,966        35,353   
  

 

 

   

 

 

   

 

 

   

 

 

 

(1)       Includes stock-based compensation as follows:

        

Cost of revenues

   $ 158      $ 111      $ 307      $ 204   

Research and development

     517        236        952        444   

Sales and marketing

     718        158        1,291        441   

General and administrative

     1,087        733        2,056        1,098   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 2,480      $ 1,238      $ 4,606      $ 2,187   
  

 

 

   

 

 

   

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2014     2013     2014     2013  

Net income

   $ 1,706      $ 873      $ 1,266      $ 270   

Change in foreign currency translation loss, net of zero tax

     (50     (51     (41     (61

Available-for-sale investments:

        

Change in net unrealized gain on investments, net of zero tax

     27        (15     39        (15

Less: reclassification adjustment for net realized gain included in net income

     (7     (2     (7     (8
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change, net of zero tax

     20        (17     32        (23
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive loss, net

     (30     (68     (9     (84
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 1,676      $ 805      $ 1,257      $ 186   
  

 

 

   

 

 

   

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

 

     June 30,
2014
    December 31,
2013
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 41,672      $ 42,369   

Short-term investments

     67,673        54,827   

Accounts receivable, net

     28,062        28,581   

Prepaid expenses and other current assets

     5,502        4,679   
  

 

 

   

 

 

 

Total current assets

     142,909        130,456   

Long-term investments

     34,415        35,608   

Property and equipment, net

     24,012        23,075   

Intangible assets, net

     2,198        2,394   

Goodwill

     317        317   

Other noncurrent assets

     721        753   
  

 

 

   

 

 

 

Total assets

   $ 204,572      $ 192,603   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 1,735      $ 1,930   

Accrued liabilities

     8,389        9,037   

Deferred revenues, current

     71,853        67,505   

Capital lease obligations, current

     270        805   
  

 

 

   

 

 

 

Total current liabilities

     82,247        79,277   

Deferred revenues, noncurrent

     8,781        8,889   

Other noncurrent liabilities

     1,423        1,320   
  

 

 

   

 

 

 

Total liabilities

     92,451        89,486   

Stockholders’ equity:

    

Common stock

     33        32   

Additional paid-in capital

     184,387        176,641   

Accumulated other comprehensive loss

     (1,097     (1,088

Accumulated deficit

     (71,202     (72,468
  

 

 

   

 

 

 

Total stockholders’ equity

     112,121        103,117   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 204,572      $ 192,603   
  

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

 

     Six Months Ended  
     June 30,  
     2014     2013  

Cash flows from operating activities:

    

Net income

   $ 1,266      $ 270   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization expense

     5,782        4,493   

Bad debt expense

     153        68   

Loss on disposal of property and equipment

     1        9   

Stock-based compensation

     4,606        2,187   

Amortization of premiums on investments

     325        115   

Excess tax benefits from stock-based compensation

     (54     —     

Changes in operating assets and liabilities:

    

Accounts receivable

     367        1,549   

Prepaid expenses and other assets

     (787     429   

Accounts payable

     (207     477   

Accrued liabilities

     (618     1,170   

Deferred revenues

     4,240        2,545   

Other noncurrent liabilities

     101        (442
  

 

 

   

 

 

 

Net cash provided by operating activities

     15,175        12,870   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of investments

     (76,907     (75,048

Sales and maturities of investments

     64,960        100,624   

Purchases of property and equipment

     (6,495     (6,238

Release of restricted cash

     —          114   
  

 

 

   

 

 

 

Net cash (used in) provided by investing activities

     (18,442     19,452   
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from exercise of stock options

     3,082        2,163   

Excess tax benefits from stock-based compensation

     54        —     

Principal payments under capital lease obligations

     (536     (655
  

 

 

   

 

 

 

Net cash provided by financing activities

     2,600        1,508   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (30     (96
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (697     33,734   

Cash and cash equivalents at beginning of period

     42,369        34,885   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 41,672      $ 68,619   
  

 

 

   

 

 

 

Non-cash investing and financing activities:

    

Purchases of property and equipment included in accrued liabilities

   $ —        $ 2,450   

Vesting of early exercised common stock options

   $ 35      $ 144   


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

EBITDA AND ADJUSTED EBITDA

(Unaudited)

(in thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2014     2013     2014     2013  

Net income

   $ 1,706      $ 873      $ 1,266      $ 270   

Depreciation and amortization of property and equipment

     2,879        2,267        5,586        4,279   

Amortization of intangible assets

     98        107        196        214   

Interest expense

     3        12        7        30   

Provision for income taxes

     174        92        356        162   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     4,860        3,351        7,411        4,955   

Stock-based compensation

     2,480        1,238        4,606        2,187   

Other (income) expense, net

     (93     (114     (100     128   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 7,247      $ 4,475      $ 11,917      $ 7,270   
  

 

 

   

 

 

   

 

 

   

 

 

 


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2014      2013      2014      2013  

GAAP gross profit

   $ 25,127       $ 20,367       $ 48,637       $ 39,455   

Plus:

           

Stock-based compensation

     158         111         307         204   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP gross profit

   $ 25,285       $ 20,478       $ 48,944       $ 39,659   
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP income from operations

   $ 1,790       $ 863       $ 1,529       $ 590   

Plus:

           

Stock-based compensation

     2,480         1,238         4,606         2,187   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP income from operations

   $ 4,270       $ 2,101       $ 6,135       $ 2,777   
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP net income

   $ 1,706       $ 873       $ 1,266       $ 270   

Plus:

           

Stock-based compensation

     2,480         1,238         4,606         2,187   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income

   $ 4,186       $ 2,111       $ 5,872       $ 2,457   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income per share:

           

Basic

   $ 0.13       $ 0.07       $ 0.18       $ 0.08   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.11       $ 0.06       $ 0.16       $ 0.07   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares used in computing non-GAAP net income per share:

           

Basic

     32,818         31,777         32,668         31,636   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

     36,839         35,393         36,966         35,353