News

ServiceSource Reports Fourth Quarter and Full-Year 2018 Financial Results

2018 Revenue of $238.3 million

2018 GAAP Net Loss of $24.9 million; Non-GAAP Net Income of $4.2 million

2018 Adjusted EBITDA of $14.2 million

DENVER – Feb. 20, 2019 – ServiceSource (NASDAQ: SREV), the digital customer journey experience company, today announced financial results for the three months and year ended December 31, 2018.

“Following my appointment as CEO on December 4, 2018, the executive team and I quickly set to work ensuring the stability of our financial performance, our client relationships and our employee base,” said Gary B. Moore, Chairman and CEO of ServiceSource. “I am pleased with how our teams around the world stayed focused and executed well on behalf of our clients to close out the year. Equally important, I have been encouraged to see the level of discipline, rigor and energy everyone is bringing to move the Company forward in its transformation as we address a large and compelling market opportunity. We believe the actions and initiatives we are undertaking throughout the business as part of our long-term strategic roadmap will set the stage for stronger and more valuable client relationships, a motivated and incented workforce and an enhanced financial profile, creating a foundation to build durable shareholder value over time.”

Key Financial Results – Fourth Quarter 2018

  • GAAP revenue was $61.5 million, compared with $66.0 million reported for Q4 2017.
  • GAAP net income was $2.3 million or $0.02 per diluted share, favorable compared with GAAP net income of $0.1 million or $0.00 per diluted share reported for Q4 2017.
  • Non-GAAP net income was $3.2 million or $0.03 per diluted share, compared with non-GAAP net income of $5.1 million or $0.06 per diluted share reported for Q4 2017.
  • Adjusted EBITDA was $6.3 million, compared with $10.3 million reported for Q4 2017.

Key Financial Results – Full-Year Ended December 31, 2018

  • GAAP revenue was $238.3 million, compared with $239.1 million reported for the year ended December 31, 2017.
  • GAAP net loss was $24.9 million or $0.27 per diluted share, compared with GAAP net loss of $29.8 million or $0.33 per diluted share reported for the year ended December 31, 2017.
  • Non-GAAP net income was $4.2 million or $0.05 per diluted share, compared with non-GAAP net income of $7.0 million or $0.08 per diluted share reported for the year ended December 31, 2017.
  • Adjusted EBITDA was $14.2 million, compared with $19.9 million reported for the year ended December 31, 2017.
  • Ended the year with $27.8 million of cash and cash equivalents and restricted cash and no borrowings under the Company’s $40.0 million revolving line of credit.

A reconciliation of GAAP to non-GAAP financial measures is provided following the Consolidated Financial Statement tables contained within this press release.

Quarterly Conference Call

ServiceSource will discuss its fourth quarter and full-year 2018 results today via teleconference at 1:30 p.m. Pacific Time. To access the call within the U.S., please dial (877) 293-5486, or outside the U.S. (914) 495-8592, at least five minutes prior to the start time. Conference ID number: 4178969. In addition, a live webcast of the call will also be available on the Investor Relations section of the ServiceSource website under Events and Presentations. A replay of the webcast will also be available on the Company’s website at http://ir.servicesource.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding our expectations for financial and operational performance, whether our go-forward model will produce anticipated benefits, and whether our improved execution and emerging capabilities will translate into desired results. These forward-looking statements are based on our current assumptions and beliefs, and involve risks and uncertainties that could cause our results to differ materially from our forward-looking statements. Those risks and uncertainties include: a decline in client renewals, the loss of one or more of our key clients or the contraction in our revenue from one or more of our key clients, in each case resulting in churn, or our clients not expanding their relationships with us; the risk of problems implementing our technologies or that our technologies will not meet customer expectations; that the market for our solution is underdeveloped and may not grow; errors in estimates as to the renewal rate improvements and/or service revenue we can generate for our customers; changes in market conditions that impact our ability to sell our solutions and/or generate service revenue on our customers’ behalf; the possibility that our estimates of service revenue, opportunity under management, and other metrics may prove inaccurate; our ability to keep customer data and other confidential information secure; our ability to adapt our solution to changes in the market or new competition; problems encountered by our clients in their business that may cause them to cancel or reduce their business with us; our ability to achieve our expected benefits from international expansion; economic or other adverse events or conditions affecting the technology industry; our ability to protect our intellectual property rights; the risk of claims that our offerings infringe the intellectual property rights of others; and other risks and uncertainties described more fully in our periodic reports filed with the Securities and Exchange Commission, which can be obtained online at the Commission’s website at http://www.sec.gov. All forward-looking statements in this press release are based on information currently available to us, and except as may be legally required we assume no obligation to update these forward-looking statements.

About ServiceSource

ServiceSource International, Inc. (NASDAQ: SREV) brings the world’s greatest brands closer to their customers through digitally-enabled solutions and data-driven insights that personalize and power the moments that matter. Backed by 20 years of experience, an industry-leading technology platform, a robust global footprint and a powerful suite of solutions that enhance every touchpoint along the Customer Journey Experience (CJX), we deliver impactful revenue growth for global market leaders. Operating out of eight countries with more than 3,000 sales delivery professionals speaking 45 languages, ServiceSource drives billions of dollars in client value annually. To learn more about how we help our clients more effectively find, convert, nurture, grow and retain their customers, visit www.servicesource.com.

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