News Column

Silver Spring Networks Reports First Quarter Financial Results

May 6, 2014

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Silver Spring Networks, Inc. (NYSE: SSNI) today announced financial results for its first quarter of 2014.

Q1 2014 Results (all comparisons made are against the prior year period)

  • Non-GAAP revenue was $71.8 million, down 3%.
  • GAAP revenue was $44.2 million, down 18%.
  • Non-GAAP gross margin was 30.0%, as compared with 29.2% a year ago.
  • GAAP gross margin was 25.9%, as compared with 18.9% a year ago.
  • Non-GAAP net loss was $9.0 million, as compared with $8.4 million a year ago.
  • GAAP net loss was $27.8 million, as compared with $64.4 million a year ago. GAAP net loss in the year ago quarter includes non-cash charges of $42.1 million in connection with our initial public offering.
  • Cash and investments of $140.5 million and no debt.

    “We made progress this quarter on our business model with strong growth in new solutions and Managed and SaaS,” said Scott Lang, Chairman, President, and Chief Executive Officer. “Despite the near-term timing delays of new customer awards, our innovative networking technology and expanding global market opportunity position us well for long term growth.”

    Business Highlights (through May 6, 2014, unless otherwise stated)

  • 18.7 million cumulative network endpoints delivered from inception through March 31, 2014, up 13% from a year ago.
  • Working with clients that represent an incremental 24 million homes and businesses that are piloting or deploying our technology in phases.
  • New solution non-GAAP revenue (distribution automation and demand side management) of $9.4M– up 74% year-over-year.
  • Managed and SaaS non-GAAP revenue of $10.0 million– up 19% year-over-year.
  • Florida Power & Light to network 75,000 street lights – North America’s largest networked street light deployment.

    Conference Call

    Silver Spring will host a conference call today at 1:30 pm PT (4:30 pm ET) to review its results for the first quarter ended March 31, 2014 and its outlook for the future. During the course of this call, Silver Spring may also disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live at 877-407-0832 (U.S.) or 201-689-8433 (International) or via webcast at http://ir.silverspringnet.com. A dial-in replay of the conference call will be available until May 20, 2014 and can be accessed at 877-660-6853 (domestic) or 201-612-7415 (international) passcode 13580613. An audio webcast replay of the conference call will be available for one year at http://ir.silverspringnet.com.

    About Silver Spring Networks

    Silver Spring Networks is a leading networking platform and solutions provider for smart energy networks. Silver Spring’s pioneering IPv6 networking platform, with over 18.5 million Silver Spring enabled devices delivered, is connecting utilities to homes and business throughout the world with the goal of achieving greater energy efficiency for the planet. Silver Spring’s innovative solutions enable utilities to gain operational efficiencies, improve grid reliability, and empower consumers to monitor and manage energy consumption. Silver Spring Networks’ customers include major utilities around the globe such as Baltimore Gas & Electric, CitiPower & Powercor, Commonwealth Edison, CPS Energy, Florida Power & Light, Jemena Electricity Networks Limited, Pacific Gas & Electric, Pepco Holdings, Progress Energy, and Singapore Power, among others. To learn more, please visit www.silverspringnet.com.

    Non-GAAP and Other Financial Measures

    Silver Spring believes that its results of operations under generally accepted accounting principles, or GAAP, when considered in isolation, may only provide limited insight into the performance of its business in any given period. As a result, Silver Spring manages its business, makes planning decisions, evaluates its performance and allocates resources by assessing non-GAAP measures such as non-GAAP revenue, cost of non-GAAP revenue, non-GAAP gross profit (loss), non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per share, and adjusted EBITDA, and total backlog, in addition to other financial measures presented in accordance with GAAP. Silver Spring believes that these non-GAAP and other financial measures offer valuable supplemental information regarding the performance of its business, and will help investors better understand the sales volumes, and gross margin and profitability trends, as well as the cash flow characteristics, of its business. The non-GAAP measures should not be considered in isolation from, are not a substitute for, and do not purport to be an alternative to, revenue, cost of revenue, gross profit (loss), operating loss, net loss, loss per share or any other performance measure derived in accordance with GAAP. Silver Spring may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.

    Non-GAAP revenue represents amounts invoiced for products for which ownership, typically evidenced by title and risk of loss, has transferred or services that have been provided to the customer, and for which payment is expected to be made in accordance with normal payment terms. Non-GAAP revenue excludes amounts for undelivered products, services to be performed in the future, and amounts paid or payable to customers. Non-GAAP revenue is initially recorded as deferred revenue and is recognized as GAAP revenue when all revenue recognition criteria have been met under Silver Spring’s accounting policies as described in Silver Spring’s filings with the Securities and Exchange Commission. Silver Spring reconciles revenue to non-GAAP revenue by adding revenue to the change in deferred revenue in a given period.

    Cost of non-GAAP revenue represents the cost associated with products and services that have been delivered to the customer, excluding stock-based compensation and amortization of intangibles. Cost of product shipments for which revenue is not recognized in the period incurred is recorded as deferred cost of revenue. Deferred cost of revenue is expensed in the statement of operations as cost of revenue when the corresponding revenue is recognized. Costs related to services are expensed in the period incurred. Silver Spring reconciles cost of revenue to non-GAAP cost of revenue by adding cost of revenue to the change in deferred cost of revenue, less stock-based compensation and amortization of intangibles included in cost of revenue, in a given period.

    Non-GAAP gross profit (loss) is the difference between non-GAAP revenue and cost of non-GAAP revenue.

    Non-GAAP operating income (loss) represents operating loss adjusted for non-GAAP revenue and cost of non-GAAP revenue and excludes expenses related to the amortization of intangible assets, legal settlements, and stock-based compensation.

    Non-GAAP net income (loss) represents net loss adjusted for non-GAAP revenue and cost of non-GAAP revenue, and excludes expenses related to the amortization of intangible assets, legal settlements, stock-based compensation, changes in fair value of preferred stock warrant liabilities and embedded derivatives, and loss on extinguishment of promissory notes.

    Non-GAAP earnings (loss) per share represents non-GAAP net loss divided by weighted average shares outstanding for the period.

    Adjusted EBITDA is net income (loss) adjusted for changes in deferred revenue and deferred cost of revenue, other (income) expense, net, provision for income taxes, depreciation and amortization, stock-based compensation and certain other items management believes affect the comparability of operating results.

    Total backlog represents future product and service billings that we expect to generate pursuant to contracts that we have entered into with our utility customers and meter manufacturers. Total backlog includes order backlog, which represents future billings for open purchase orders and other firm commitments.

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding the momentum in Silver Spring Networks’ business, future growth, and future financial results. Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Important factors that could cause results to differ materially from the statements herein include: timing around customer decisions and deployment pace; dependence on a limited number of customers and key suppliers; general economic risks; specific economic risks in different geographies and among different industries; failure to maintain or increase renewals and increase business from existing customers; uncertainties around continued success in sales growth and market share gains; lengthy sales cycles with no assurances that a prospective customer will select Silver Spring’s products and services; amounts included in backlog may not result in billings or revenue; adverse publicity about, or consumer or political opposition to, the smart grid; security breaches involving smart grid products or services; the ability to integrate technology into third-party devices and Silver Spring’s relationship with third-party manufacturers; execution and customer adoption risks related to new product introductions and innovation; the ability to attract and retain personnel, including members of Silver Spring’s management team; changes in strategy; technological changes that make Silver Spring’s products and services less competitive; competition, particularly from larger companies with more resources than Silver Spring; risks related to retention of management; international business uncertainties; the ability to acquire and integrate other businesses; and other risk factors set forth from time to time in Silver Spring’s filings with the SEC, copies of which are available free of charge at the SEC’s website at www.sec.gov. All forward-looking statements in this press release reflect Silver Spring’s expectations as of May 6, 2014. Silver Spring undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements in this press release in light of new information or future events. In addition, the financial results set forth in this press release are estimates based on information currently available to Silver Spring.

    SILVER SPRING NETWORKS
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
       
    Three Months Ended
    March 31,

     

    20142013
    Revenue:

    Product revenue

    $ 28,227 $ 41,720
    Service revenue   16,002     11,983  
    Net revenue44,22953,703
    Cost of revenue:
    Product cost of revenue 17,915 25,743
    Service cost of revenue   14,870     17,826  
    Total cost of revenue32,78543,569
    Gross profit11,44410,134
    Operating expenses:
    Research and development 17,725 25,119
    Sales and marketing 9,223 10,453
    General and administrative   11,667     14,136  
    Total operating expenses38,61549,708
    Operating income (loss)(27,171)(39,574)
    Other income (expense)
    Interest income (expense), net (37 ) (1,052 )
    Conversion of promissory notes and remeasurement of warrants and derivatives       (23,676 )
    Other income (expense), net(37)(24,728)
    Income (loss) before provision for income taxes (27,208 ) (64,302 )
    Provision (benefit) for income taxes   599     64  
    Net income (loss)(27,807)(64,366)
    Deemed dividend to convertible preferred stockholders       (105,000 )
    Net income (loss) attributable to common stockholders$(27,807)$(169,366)
    Net income (loss) per share
    Basic net income (loss) per share attributable to common stockholders$(0.58)$(16.18)
    Diluted net income (loss) per share attributable to common stockholders$(0.58)$(16.18)
    Weighted average number of shares used in computation
    Basic 47,693 10,469
    Diluted 47,693 10,469
     
    Non-GAAP results (in thousands, except per share data)
    The following tables reconcile the Company's net income (loss) and income (loss) per share as presented in its unaudited Condensed Consolidated Statements of Operations and prepared in accordance with GAAP to its non-GAAP net income (loss) and non-GAAP income (loss) per share.
     
    Three Months Ended
    March 31,
    20142013
    Net income (loss)$(27,807)$(64,366)
    Change in deferred revenue, net of foreign currency translation 27,621 20,068
    Change in deferred cost of revenue, net of foreign currency translation (20,257 ) (15,423 )
    Amortization of intangibles in cost of revenue 48 48
    Conversion of promissory notes and remeasurement of warrants and derivatives 23,676
    Convertible notes accretion / interest 935
    Stock-based compensation   11,432     26,668  
    Non-GAAP net income (loss)$(8,963)$(8,394)
    Non-GAAP income (loss) per share
    Basic$(0.19)$(0.80)
    Diluted$(0.19)$(0.80)
    Weighted average number of shares used in computation
    Basic 47,693 10,469
    Diluted 47,693 10,469
     
     

    SILVER SPRING NETWORKS, INC.

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

    (In thousands, except par values)

       
    March 31,December 31,
    20142013 (a)
    ASSETS
    Current assets:
    Cash and cash equivalents $ 78,492 $ 82,596
    Short-term investments 62,003 63,256
    Accounts receivable 61,423 69,724
    Inventory 4,859 4,350
    Deferred cost of revenue 33,875 37,460
    Prepaid expenses and other current assets   5,920     4,758  
    Total current assets 246,572 262,144
    Property and equipment, net 12,526 12,364
    Deferred cost of revenue, non-current 262,614 238,663
    Deferred tax assets, non-current 1,202 1,613
    Other long-term assets   1,505     1,567  
    TOTAL ASSETS$524,419   $516,351  
    LIABILITIES AND STOCKHOLDERS' DEFICIT
    Current liabilities:
    Accounts payable $ 28,455 $ 31,317
    Accrued liabilities 21,784 21,282
    Deferred revenue 96,038 111,293
    Current portion of capital lease obligations 1,604 1,615
    Deferred tax liability   1,176     1,176  
    Total current liabilities 149,057 166,683
    Deferred revenue, non-current 456,290 413,360
    Other liabilities 16,161 14,426
    Stockholders’ deficit:

    Preferred stock, $0.001 par value, 10,000 shares authorized and no shares issued or outstanding as of March 31, 2014 and December 31, 2013

    Common stock and additional paid-in capital, $0.001 par value; 1,000,000 shares authorized, 48,194 and 47,384 shares issued and outstanding as of March 31, 2014 and December 31, 2013

    547,916 539,013
    Accumulated other comprehensive income (loss) 63 130
    Accumulated deficit   (645,068 )   (617,261 )
    Total stockholders’ deficit   (97,089)   (78,118)
    TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT$524,419   $516,351  
    (a) Derived from audited consolidated financial statements
     
     
    SILVER SPRING NETWORKS
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
    (In thousands)
       
    Three Months Ended
    March 31,
    20142013
    OPERATING ACTIVITIES
    Net income (loss)$(27,807)$(64,366)
    Adjustments to reconcile net loss to net cash used in operating activities:
    Depreciation and amortization 1,466 1,677
    Stock-based compensation 11,432 26,668
    Conversion of promissory notes and remeasurement of warrants and derivatives 23,676
    Other non-cash adjustments 630 980
    Changes in assets and liabilities:
    Accounts receivable 8,301 6,539
    Inventory (596 ) (4,564 )
    Prepaid expenses and other current assets (1,158 ) (1,121 )
    Deferred cost of revenue (20,366 ) (15,410 )
    Other long-term assets 14 2,322
    Accounts payable (3,124 ) (1,637 )
    Accrued liabilities (1,908 ) (1,887 )
    Customer deposits 107 (241 )
    Deferred revenue 27,675 20,121
    Other liabilities   2,074     (1,670 )
    Net cash provided by provided by (used in) operating activities   (3,260)   (8,913)
    INVESTING ACTIVITIES
    Proceeds from sales and maturity of short-term investments 18,466
    Purchase of short-term investments (17,354 )
    Purchases of property and equipment   (1,742 )   (1,323 )
    Net cash provided by (used in) investing activities   (630)   (1,323)
    FINANCING ACTIVITIES
    Payment upon termination of preferred stock warrants of a related party (12,000 )
    Proceeds from initial public offering, net of offering costs 86,238
    Proceeds from private placement of common stock with a related party 12,000
    Payments on capital lease obligations

    (356

    )

    (453 )
    Proceeds from issuance of common stock, net of repurchases 4,555 14
    Taxes paid related to net share settlement of equity awards   (4,413 )   (5,855 )
    Net cash provided by (used in) financing activities  

    (214

    )

      79,944  
    Net increase in cash and cash equivalents

    (4,104

    ) 69,708
    Cash and cash equivalents - beginning of period   82,596     72,646  
    Cash and cash equivalents - end of period$

    78,492

      $142,354  
     
     
    SILVER SPRING NETWORKS, INC.
    UNAUDITED RECONCILIATION OF NET REVENUE BETWEEN GAAP AND NON-GAAP
    (in thousands, except percentages)
               
    Q1Q2Q3Q4Q1YoY%
    CY13CY13CY13CY13CY14Change

    TYPE

    GAAP net revenue
    Product net revenue $ 41,720 $ 47,996 $ 56,650 $ 77,944 $ 28,227 -32%
    Service net revenue
    Managed services and SaaS 4,559 37,508 9,835 8,159 7,797 71%
    Professional services   7,424     18,006     5,996     11,061     8,205   11%
    Total service net revenue $ 11,983   $ 55,514   $ 15,831   $ 19,220   $ 16,002   34%
    Total GAAP net revenue $ 53,703   $ 103,510   $ 72,481   $ 97,164   $ 44,229   -18%
    % Product78%46% 78 % 80 % 64 %
    % Service22%54% 22 % 20 % 36 %
    Change in deferred net revenue
    Change in deferred product revenue $ 14,702 $ 17,905 $ 16,017 $ (7,054 ) $ 24,006
    Change in deferred service revenue
    Managed services and SaaS 3,825 (28,245 ) 16 1,000 2,219
    Professional services   1,541     (6,719 )   5,702     (1,462 )   1,396  
    Total change in deferred service revenue $ 5,366   $ (34,964 ) $ 5,718   $ (462 ) $ 3,615  
    Total change in deferred revenue $ 20,068 $ (17,059 ) $ 21,735 $ (7,516 ) $ 27,621
    Non-GAAP revenue
    Product net revenue $ 56,422 $ 65,901 $ 72,667 $ 70,890 $ 52,233 -7%
    Service net revenue
    Managed services and SaaS 8,384 9,263 9,851 9,159 10,016 19%
    Professional services   8,965     11,287     11,698     9,599     9,601   7%
    Total service net revenue $ 17,349   $ 20,550   $ 21,549   $ 18,758   $ 19,617   13%
    Total non-GAAP net revenue$73,771   $86,451   $94,216   $89,648   $71,850   -3%
    % Product76%76% 77 % 79 % 73 %
    % Service24%24% 23 % 21 % 27 %

    SOLUTION

    GAAP net revenue
    Advanced metering infrastructure $ 45,149 $ 97,598 $ 66,774 $ 91,842 $ 40,023 -11%
    New solutions   8,554     5,912     5,707     5,322     4,206   -51%
    Total GAAP net revenue$53,703   $103,510   $72,481   $97,164   $44,229   -18%
    % Advanced metering infrastructure84%94% 92 % 95 % 90 %
    % New solutions16%6% 8 % 5 % 10 %
    Change in deferred net revenue
    Advanced metering infrastructure $ 23,219 $ (21,380 ) $ 19,244 $ (9,532 ) $ 22,422
    New solutions   (3,151 )   4,321     2,491     2,016     5,199  
    Total change in deferred net revenue $ 20,068 $ (17,059 ) $ 21,735 $ (7,516 ) $ 27,621
    Non-GAAP net revenue
    Advanced metering infrastructure $ 68,368 $ 76,218 $ 86,018 $ 82,310 $ 62,445 -9%
    New solutions   5,403     10,233     8,198     7,338     9,405   74%
    Total Non-GAAP net revenue$73,771   $86,451   $94,216   $89,648   $71,850   -3%
    % Advanced metering infrastructure93%88% 91 % 92 % 87 %
    % New solutions7%12% 9 % 8 % 13 %

    GEOGRAPHY

    GAAP net revenue
    United States $ 50,747 $ 94,516 $ 68,562 $ 71,602 $ 21,843 -57%
    International   2,956     8,994     3,919     25,562     22,386   657%
    Total GAAP net revenue$53,703   $103,510   $72,481   $97,164   $44,229   -18%
    % United States94%91%95%74%49%
    % International6%9%5%26%51%
    Change in deferred net revenue
    United States $ 8,839 $ (21,032 ) $ 15,289 $ 1,369 $ 41,256
    International   11,229     3,973     6,446     (8,885 )   (13,635 )
    Total change in deferred net revenue $ 20,068 $ (17,059 ) $ 21,735 $ (7,516 ) $ 27,621
    Non-GAAP net revenue
    United States $ 59,586 $ 73,484 $ 83,851 $ 72,971 $ 63,099 6%
    International   14,185     12,967     10,365     16,677     8,751   -38%
    Total non-GAAP net revenue$73,771   $86,451   $94,216   $89,648   $71,850   -3%
    % United States81%85%89%81%88%
    % International19%15%11%19%12%
     
     
    SILVER SPRING NETWORKS, INC.
    UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
    (in thousands, except percentages and headcount)
               
    Q1Q2Q3Q4Q1YoY%
    CASH FLOW DATACY13CY13CY13CY13CY14Change
    Operating cash flow $ (8,913 ) $ (14,048 ) $ 21,131 $ 1,844 $ (3,260 ) 63%
    Operating cash flow - TTM (19,847 ) (19,158 ) 12,172 14 5,667 129%
    BALANCE SHEET DATA
    Cash, cash equivalents and short-term investments $ 142,354 124,970 143,431 145,852 $ 140,495 -1%
    Deferred net revenue
    End of quarter 528,176 510,722 532,546 524,653 552,328
    Less: Beginning of quarter (508,056 ) (528,176 ) (510,722 ) (532,546 ) (524,653 )
    Foreign currency translation adjustment   (52 )   395     (89 )   377     (54 )
    Change in deferred net revenue, net of foreign currency translation $ 20,068   $ (17,059 ) $ 21,735   $ (7,516 ) $ 27,621  
    Deferred cost of revenue
    End of quarter $ 260,572 268,236 275,101 276,123 $ 296,489
    Less: Beginning of quarter (245,163 ) (260,572 ) (268,236 ) (275,101 ) (276,123 )
    Foreign currency translation adjustment   14     99     (23 )   (11 )   (109 )
    Change in deferred cost of revenue, net of foreign currency translation $ 15,423   $ 7,763   $ 6,842   $ 1,011   $ 20,257  
    STOCK-BASED COMPENSATION
    Cost of goods sold $ 6,724 $ 2,531 $ 1,376 $ 1,644 $ 2,692 -60%
    Research and development 9,544 3,607 1,905 2,277 3,155 -67%
    Sales and marketing 3,346 1,526 950 1,238 2,045 -39%
    General and administrative   7,054     3,181     2,759     2,842     3,540   -50%
    Total $ 26,668   $ 10,845   $ 6,990   $ 8,001   $ 11,432   -57%
    EMPLOYEES 572 589 608 602 617 8%
    HOMES & BUSINESSES
    Cumulative network endpoints delivered* 16,507 17,008 17,509 18,184 18,710 13%
    *Endpoints refer to communication modules in electric meters
     
     
    SILVER SPRING NETWORKS
    UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data and percentages)
      Q1Q2   Q3   Q4   Q1  

    YOY%

    QUARTERLY RECONCILIATION OF RESULTSCY13CY13CY13CY13CY14Change
    Net revenue
    GAAP net revenue$53,703$103,510$72,481$97,164$44,229 -18%
    Change in deferred revenue, net of foreign currency translation   20,068   (17,059)   21,735   (7,516)   27,621
    Non-GAAP net revenue$73,771$86,451$94,216$89,648$71,850 -3%
    Gross profit
    GAAP gross profit$10,134$48,250$23,226$33,744$11,444 13%
    Change in deferred revenue, net of foreign currency translation 20,068 (17,059) 21,735 (7,516) 27,621
    Change in deferred cost of revenue, net of foreign currency translation (15,423) (7,763) (6,842) (1,011) (20,257)
    Amortization of intangibles in cost of revenue 48 48 48 48 48
    Stock-based compensation   6,724   2,531   1,376   1,644   2,692
    Non-GAAP gross profit$21,551$26,007$39,543$26,909$21,548 0%
    GAAP gross margin % (as a % of GAAP net revenue)19%47%32%35%26%
    Non-GAAP gross margin % (as a % of non-GAAP net revenue)29%30%42%30%30%
    Operating income (loss)
    GAAP operating income (loss)$(39,574)$9,982$(12,115)$(48)$(27,171) 31%
    Change in deferred revenue, net of foreign currency translation 20,068 (17,059) 21,735 (7,516) 27,621
    Change in deferred cost of revenue, net of foreign currency translation (15,423) (7,763) (6,842) (1,011) (20,257)
    Amortization of intangibles in cost of revenue 48 48 48 48 48
    Stock-based compensation 26,668 10,845 6,990 8,001 11,432
    Legal settlements  



          250  
    Non-GAAP operating income (loss)$(8,213)$(3,947)$9,816$(276)$(8,327) -1%
    GAAP operating margin % (as a % of GAAP revenue) -74%10%-17%0%-61%
    Non-GAAP operating margin % (as a % of non-GAAP net revenue)-11%-5%10%0%-12%
    Adjusted EBITDA
    GAAP net income (loss)$(64,366)$9,470$(12,269)$358$(27,807) 57%
    Change in deferred revenue, net of foreign currency translation 20,068 (17,059) 21,735 (7,516) 27,621
    Change in deferred cost of revenue, net of foreign currency translation (15,423) (7,763) (6,842) (1,011) (20,257)
    Other (income) expense, net 24,728 184 54 (138) 37
    Provision for income taxes 64 328 100 (268) 599
    Depreciation and amortization

    1,677

    1,689 1,624 1,656 1,466
    Stock-based compensation 26,668 10,845 6,990 8,001 11,432
    Legal settlements  



     



     



      250  



    Adjusted EBITDA$

    (6,584)

    $(2,306)$11,392$1,332$(6,909)

    -5%

    Net income (loss)
    GAAP net income (loss)$(64,366)$9,470$(12,269)$358$(27,807) 57%
    Change in deferred revenue, net of foreign currency translation 20,068 (17,059) 21,735 (7,516) 27,621
    Change in deferred cost of revenue, net of foreign currency translation (15,423) (7,763) (6,842) (1,011) (20,257)
    Amortization of intangibles in cost of revenue 48 48 48 48 48
    Convertible notes accretion / interest 935

    Conversion of promissory notes and remeasurement of warrants and derivatives

    23,676
    Stock-based compensation 26,668 10,845 6,990 8,001 11,432
    Legal settlements  



     



     



      250  



    Non-GAAP net income (loss)$(8,394)$(4,459)$9,662$130$(8,963) -7%
    GAAP net margin % (as a % of GAAP revenue) -120% 9% -17% 0% -63%
    Non-GAAP net margin % (as a % of non-GAAP net revenue) -11% -5% 10% 0% -12%
    GAAP income (loss) per share
    Basic$(16.18)*$0.20$(0.26)$0.01$(0.58)
    Diluted$(16.18)*$0.19$(0.26)$0.01$(0.58)
    Weighted average number of shares used in computation
    Basic 10,469 46,599 46,729 47,198 47,693
    Diluted 10,469 48,995 46,729 49,603 47,693

    * GAAP income (loss) per share is based on net loss attributable to common stockholders

     

    Non-GAAP income (loss) per share
    Basic$(0.80)$(0.10)$0.21$0.00$(0.19)
    Diluted$(0.80)$(0.10)$0.19$0.00$(0.19)
    Weighted average number of shares used in computation
    Basic 10,469 46,599 46,729 47,198 47,693
    Diluted 10,469 46,599 49,620 49,603 47,693





    Silver Spring Networks, Inc.

    Tricia Gugler, 650-839-4504

    Investor Relations

    tgugler@silverspringnet.com

    Noel Hartzell, 650-839-4184

    Global Communications

    nhartzell@silverspringnet.com

    Source: Silver Spring Networks, Inc.


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    Source: Business Wire


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