Kintera (MM) (NASDAQ:KNTA)
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Kintera,® Inc. (NASDAQ:KNTA), a leading
provider of software as a service (SaaS) to the nonprofit and government
sectors, today reported financial results for its first quarter ended
March 31, 2008.
Revenue for the first quarter 2008 was $8.9 million, compared to $10.7
million for the same period last year.
On a GAAP basis, net loss for the quarter was $4.3 million, or $0.11 per
diluted share, which is an improvement of 48 percent or $0.10 per
diluted share, compared with a net loss of $8.3 million, or $0.21 per
diluted share, for the same period last year.
Earnings before interest, taxes, depreciation, amortization, stock-based
compensation expense and restructuring charges (adjusted EBITDA) was a
loss of $2.5 million, or $0.06 per share, in the first quarter of 2008,
compared to a loss of $3.8 million, or $0.09 per share, in the first
quarter of 2007. This is an improvement of approximately 33 percent or
$0.03 per share year-over-year.
“We believe our unified software as a service
platform, which includes events, marketing, and donor management, will
help fuel our growth, expand our existing relationships, and attract new
organizations to Kintera,” said Richard N.
LaBarbera, Kintera CEO. “We are excited about
its potential and the value it brings to help nonprofit organizations
better achieve their mission.”
Operating expenses for the first quarter 2008 totaled $9.2 million. This
is a decrease of 37 percent year over year, from $15 million in the
first quarter 2007.
Cash, cash equivalents and marketable securities at March 31, 2008 were
$5.7 million. Deferred revenues were $15.7 million at March 31, 2008
compared with $15.5 million at Dec. 31, 2007.
The company also announced a restructuring plan which includes a 14
percent reduction in resources targeting an excess of one million per
quarter of savings by the third quarter. Our expected charge is $450,000.
Earnings Call
Kintera will host a conference call on Wednesday, May 7, 2008 at 1:45
p.m. PDT to discuss the company's financial results. The conference call
can be accessed by dialing toll-free 866.356.4123 (617.597.5393 for
international calls), using conference code 72167212. A replay of the
call will be available via the Internet at www.kintera.com/webcasts.
KNTA-F
About Kintera, Inc.
Kintera®, Inc. (NASDAQ:KNTA) provides an
integrated, on-demand open platform to help organizations quickly and
easily reach more people, raise more money, and run more efficiently.
The Kintera platform consists of a variety of products including Events,
Advocacy, E-mail, Web Site Content Management, Donor Management,
Constituent Relationship Management and Accounting. In addition, Kintera’s
open technology, Kintera Connect™, enables
clients and partners to integrate directly with Kintera technology,
resulting in the availability of best of breed solutions through the
Kintera Connect partner program.
For more information about Kintera software and services, visit www.kintera.com.
Kintera, Kintera Sphere, Kintera Connect, Social CRM and The Giving
Experience, are either registered trademarks or trademarks of Kintera,
Inc. in the U.S. and/or other countries. Other company and product names
may be trademarks of their respective owners.
Forward-Looking Statements
This press release contains, in addition to historical information,
forward-looking statements. Such statements are based on
management’s current estimates and
expectations and are subject to a number of uncertainties and risks that
could cause actual results to differ materially from those described in
the forward-looking statements. Kintera is providing this
information as of May 7, 2008, and expressly disclaims any duty to
update information contained in this press release. Forward-looking
statements in this press release include, without limitation, express
and implied statements regarding Kintera's anticipated operating
results, including anticipated expense reductions, and the growth in the
market for Kintera's services.
These forward-looking statements involve risks and uncertainties,
which could cause actual results to differ materially from those
expressed or implied here. Readers are referred to the documents
filed by Kintera with the Securities and Exchange Commission,
specifically the most recent reports which identify important risk
factors that could cause actual results to differ from those contained
in the forward-looking statements, including but not limited to: our
limited operating history; our history of losses; our dependence on
increased acceptance by nonprofit organizations of online fundraising;
lengthy sales cycles for major customers; our need to manage growth;
risks associated with accounting for and processing large amounts of
donations; the rapidly changing technologies and market demands; and
other risks identified in our filings with the Securities and Exchange
Commission. Given these uncertainties, you should not place undue
reliance on these forward-looking statements. The information contained
in this press release is a statement of Kintera's present intention,
belief or expectation and is based upon, among other things, the
existing industry conditions, market conditions and prices, the economy
in general and Kintera's assumptions.
Kintera may change its intention, belief or expectation, at any time
and without notice, based upon any changes in such factors, in Kintera's
assumptions or otherwise. Kintera undertakes no obligation to
review or confirm analysts' expectations or estimates or to release
publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including adjusted
EBITDA, adjusted EBITDA per share, and operating expenses and net losses
excluding restructuring charges, are considered non-GAAP financial
measures. Kintera believes this information is useful to
investors because it provides a basis for measuring the Company’s
available capital resources, the operating performance of the Company’s
business and the Company’s cash flow,
excluding non-cash and non-recurring items that would normally be
included in the most directly comparable measures calculated and
presented in accordance with generally accepted accounting principles.
The Company’s management uses these
non-GAAP financial measures along with the most directly comparable GAAP
financial measures in evaluating the Company’s
operating performance and capital resources and cash flow. Non-GAAP
financial measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance with GAAP,
and non-financial measures as reported by the Company may not be
comparable to similarly titled amounts reported by other companies.
Kintera, Inc.
Consolidated Statements of Operations Data
(in thousands, except per share data)
(unaudited)
For the three months ended
March 31,
2008
2007
Net revenue
$
8,911
$
10,721
Cost of revenue
3,993
4,136
Gross profit
4,918
6,585
Gross margin
55
%
61
%
Sales and marketing
4,018
5,620
Product development and support
1,621
1,732
General and administrative
3,006
4,486
Amortization of purchased intangibles
522
733
Restructuring charges
-
2,445
Total operating expenses
9,167
15,016
Operating loss
(4,249
)
(8,431
)
Interest income (expense) and other, net
6
286
Loss before income taxes
(4,243
)
(8,145
)
Provision for income taxes
52
118
Net loss
$
(4,295
)
$
(8,263
)
Basic and diluted net loss per share
$
(0.11
)
$
(0.21
)
Weighted average shares - basic and diluted
40,248
39,839
Kintera, Inc.
Reconciliation of GAAP Net Loss to EBITDA
(in thousands, except per share data)
(unaudited)
For the three months ended
March 31,
2008
2007
Net loss
$
(4,295
)
$
(8,263
)
Interest income
(6
)
(286
)
Depreciation and amortization
1,265
1,370
Income taxes
52
118
Stock-based compensation
505
838
Restructuring charges
-
2,445
Adjusted EBITDA
$
(2,479
)
$
(3,778
)
Basic and Diluted Adjusted EBITDA per share
$
(0.06
)
$
(0.09
)
Weighted average shares - basic and diluted
40,248
39,839
Kintera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
For the three months ended
March 31,
2008
2007
Cash provided by (used in) operating activities
$
(2,769
)
$
(3,721
)
Cash provided by (used in) investing activities
558
(2,171
)
Cash provided by (used in) financing activities
(265
)
(100
)
Net increase (decrease) in cash
(2,476
)
(5,992
)
Cash and cash equivalents, beginning of period
6,556
11,548
Cash and cash equivalents, end of period
$
4,080
$
5,556
Kintera, Inc.
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
March 31,
December 31,
September 30,
June 30,
March 31,
2008
2007
2007
2007
2007
Cash, cash equivalents and marketable securities
$
5,660
$
9,404
$
11,751
$
12,036
$
14,772
Restricted cash
7,718
12,429
11,776
4,813
6,271
Accounts receivable, net
4,608
4,174
5,025
5,889
5,916
Other current assets
2,284
2,147
1,960
1,668
1,526
Total current assets
20,270
28,154
30,512
24,406
28,485
Property and equipment, net
5,854
5,859
3,396
3,215
3,228
Goodwill, intangibles and other
15,456
15,985
16,564
17,143
17,723
Total assets
$
41,580
$
49,998
$
50,472
$
44,764
$
49,436
Donations payable
$
7,718
$
12,429
$
11,776
$
4,813
$
6,271
Deferred revenue
15,721
15,513
15,637
16,892
18,001
Accounts payable and other current liabilities
5,052
5,235
6,043
5,592
6,332
Total current liabilities
28,491
33,177
33,456
27,297
30,604
Other liabilities
3,283
3,230
1,101
810
654
Stockholders' equity
9,806
13,591
15,915
16,657
18,178
Total liabilities and stockholders' equity
$
41,580
$
49,998
$
50,472
$
44,764
$
49,436