2019 Revenue of $216.1 million
2019 GAAP Net Loss of $18.7 million; Non-GAAP Net Loss of $3.3 million
2019 Adjusted EBITDA of $4.2 million
DENVER – Feb. 19, 2020 – ServiceSource (NASDAQ: SREV), the digital customer journey experience company, today announced financial results for the three months and year ended December 31, 2019.
“2019 was a foundational year for ServiceSource, as we made solid progress on our strategic transformation to strengthen our client relationships, improve our execution, and enhance our financial performance,” said Gary B. Moore, Chairman and CEO of ServiceSource. “We simplified our operating model, rationalized areas that were not strategic to our long-term roadmap, and made important forward-focused growth investments throughout the business. During the year, we won several new logos, expanded our scope and revenue with some of our largest clients, and delivered financial results that exceeded our expectations.”
Moore continued, “Our unique Customer Journey Experience solution suite is strengthening our value proposition in the marketplace, we are earning greater trust and loyalty from our clients, and our teams are more consistently delivering and fulfilling our brand promise. We believe we have established a firmer foundation for ServiceSource that we can continue to build upon, and we remain focused and committed on executing to our longer-term priorities and value creation objectives.”
Key Financial Results – Fourth Quarter 2019
Key Financial Results – Full-Year Ended December 31, 2019
A reconciliation of GAAP to non-GAAP financial measures is provided following the Condensed Consolidated Financial Statement tables contained within this press release.
Key Business Highlights – Full-Year Ended December 31, 2019
“We exited 2019 on a positive note, with strong operational execution contributing to financial results that surpassed our expectations,” said Richard G. Walker, CFO of ServiceSource. “We exceeded the midpoint of our full-year revenue objectives by $4.0 million and delivered $4.2 million of Adjusted EBITDA against an approximately break-even expectation. Furthermore, our intense focus on working capital efficiency and prudent capital allocation drove positive free cash flow and a stronger balance sheet with cash accretion for the full-year.”
Quarterly Conference Call
ServiceSource will discuss its fourth quarter and full-year 2019 results and provide commentary to management’s fiscal 2020 contextual outlook on February 20, 2020, via teleconference at 9:30 a.m. Eastern 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: 1086276. 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.
This press release contains forward-looking statements, including statements regarding our expectations for financial and operational performance, whether our investments will produce anticipated benefits, whether our value proposition is strengthening in the market, and whether our simplified operating model 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; errors in estimates as to the renewal rate improvements and/or service revenue we can generate for our clients; changes in market conditions that impact our ability to sell our solutions and/or generate service revenue on our clients’ behalf; economic or other adverse events or conditions affecting the technology industry; 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.
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 (CJXTM), 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.