Press Releases

Our latest announcements, events and financial results.

August 10, 2017

Determine Announces 1st Quarter Fiscal Year 2018 Financial Results

Year-over-Year revenue increases, plus capital raise, positions Determine for continued growth.

CARMEL, INAugust 10, 2017Determine, Inc. (NASDAQ: DTRM), the pioneering leader in global Source-to-Pay and Enterprise Contract Lifecycle Management (ECLM) Cloud Platform solutions, announced financial results for its first quarter ended June 30, 2017.

Q1 FY18 GAAP Financial Highlights:

(in thousands, except per share amounts)
GAAPQ1Q4Q1ChangeChange
Financial MeasuresFY 2018FY 2017FY 2017Q/QY/Y
Revenue – total$ 6,988$ 7,535$ 6,492(7.3%)7.6%
Revenue – recurring$ 5,300$ 5,628$ 5,068(5.8%)4.6%
Revenue – non-recurring$ 1,688$ 1,907$ 1,424(11.5%)18.5%
Gross profit – total$ 3,685$ 3,973$ 3,385(7.2%)8.9%
Gross profit – recurring$ 3,514$ 3,696$ 3,462(4.9%)1.5%
Gross profit/(loss) – non-recurring$ 171$ 277$ (77)(38.3%)322.1%
Gross margin – total52.7%52.7%52.1%0.0 pts0.6 pts
Gross margin – recurring66.3%65.7%68.3%0.6 pts(2.0 pts)
Gross margin – non recurring10.1%14.5%(5.4%)(4.4 pts)15.5 pts
Net loss$ (2,110)$ (1,708)$ (2,342)23.5%(9.9%)
EPS$ (0.17)$ (0.14)$ (0.21)$ (0.03)$ 0.04
  • GAAP revenue was $7.0 million in Q1 FY2018, compared to $7.5 million in Q4 FY17, representing a 7.3% decrease quarter-over-quarter, and compared to $6.5 million in Q1 FY2017 GAAP revenue, representing a 7.6% increase year-over-year.
  • GAAP gross profit percentage was 52.7% in Q1 FY2018, compared to 52.7% in Q4 FY2017, and 52.1% in Q1 FY2017, remaining consistent both quarter-over-quarter and year-over-year.
  • Deferred revenues decreased to $9.9 million in Q1 FY2018 from $10.1 million in Q4 FY2017.
  • GAAP net loss was $2.1 million or $0.17 per share in Q1 FY2018, compared to $1.7 million or $0.14 per share in Q4 FY2017, representing an additional loss of $0.03 per share quarter-over-quarter; in Q1 FY2017 the GAAP net loss was $2.3 million or $0.21 per share.

Q1 FY18 Non-GAAP Financial Highlights:

(in thousands, except per share amounts)
Non-GAAPQ1Q4Q1ChangeChange
Financial MeasuresFY 2018FY 2017FY 2017Q/QY/Y
Revenue – total$ 6,988$ 7,535$ 6,500(7.3%)7.5%
Revenue – recurring$ 5,300$ 5,628$ 5,076(5.8%)4.4%
Revenue – non-recurring$ 1,688$ 1,907$ 1,424(11.5%)18.5%
Gross profit – total$ 4,003$ 4,297$ 3,710(6.8%)7.9%
Gross profit – recurring$ 3,813$ 3,967$ 3,737(3.9%)2.0%
Gross profit/(loss) – non-recurring$ 190$ 330$ (27)(42.4%)803.7%
Gross margin – total57.3%57.0%57.1%0.3 pts0.2 pts
Gross margin – recurring71.9%70.5%73.6%1.4 pts(1.7 pts)
Gross margin – non recurring11.3%17.3%(1.9%)(6.0 pts)13.2 pts
Net loss$ (952)$ (428)$ (1,285)122.4%(25.9%)
EPS$ (0.08)$ (0.04)$ (0.11)$ (0.04)$ 0.03
Billings$ 6,772$ 7,582$ 6,280(10.7%)7.8%
  • Non-GAAP revenue was $7.0 million in Q1 FY2018, compared to $7.5 million in Q4 FY17, representing a 7.3% decrease quarter-over-quarter, and compared to $6.5 million in Q1 FY2017, representing a 7.5% increase year-over-year.
  • Non-GAAP gross profit percentage was 57.3% in Q1 FY2018, compared to 57.0% in Q4 FY2017, and 57.1% in Q1 FY2017, remaining consistent both quarter-over-quarter and year-over-year.
  • Non-GAAP net loss was $1.0 million or $0.08 per share in Q1 FY2018, compared to a net loss of $0.4 million or $0.04 per share in Q4 FY2017, representing a $0.04 additional loss per share quarter-over-quarter. Q1 FY2017 had a non-GAAP net loss of $1.3 million or $0.11 per share in Q1 FY2017, representing a $0.03 improvement per share year-over-year.
  • Billings increased 7.8% to $6.8 million in Q1 FY2018 from $6.3 million in Q1 FY2017. Billings, a non-GAAP measure, are defined as revenue plus the change in deferred revenues.
  • Non-GAAP EBITDA was a $0.2 million loss in Q1 FY2018, compared to a loss of $0.8 million in Q1 FY2017, representing an improvement of $0.6 million year-over-year.

The business is off to a solid start from a financial perspective and I’m pleased to report that we are in a good position across our key measures. As we move forward into Fiscal 2018, our focus and our charter are on new business growth. The additional resources that we secured during our recently completed capital raise in combination with the industry leading capabilities of Determine Cloud Platform will serve to power our efforts in meeting our growth charter. We intend to build a robust business with a long-term view — we have the right talent, resources and solutions to make it happen.”

— Patrick Stakenas, President and CEO, Determine, Inc.

Q1 FY18 Determine Business Highlights:

  • Determine Announces Pricing of Registered Direct Offering of Common Stock: Determine entered into a definitive agreement with investors for the purchase and sale of 2,184,000 shares of common stock at a price of $2.50 per share in a registered direct offering for total gross proceeds of $5.46 million.
  • Determine joins Russell Microcap® IndexDetermine joined the Russell Microcap® Index at the conclusion of the Russell indexes annual reconstitution, effective after the US market opened on June 26th. Membership means automatic inclusion in the appropriate growth and value style indexes.
  • Annualized Bookings: The sales team delivered $700,000 in Annualized Bookings for the quarter, with 100% of all new customers selecting the Determine Cloud Platform for their Source-to-Pay or Contract Lifecycle Management needs.
  • Top 50 Providers to Know: Determine was recognized for the third year in a row in Top 50 Providers to Know by Spend Matters. The ranking highlights firms that continue to lead the charge on new procurement technologies and services driving innovation and changing the way companies do business.
  • Determine Cloud Platform Named as an E-Procurement Leader in the Spend Matters SolutionMapDetermine was recognized as a Value and Solution Leader in the Spend Matters SolutionMapSM vendor comparison ranking. E-procurement capabilities on the Determine Cloud Platform scored a hat trick across five personas, landing in the Value Leader quadrant every time. The company ranked in the top third for customer value, innovation, ROI and TCO, along with numerous solution technology categories as well.
  • Q1 FY2018 Customer Announcements:  During Q1 FY2018, Determine announced numerous customer accounts in the US and Europe across its Determine Cloud Platform Source-to-Pay and Enterprise Contract Lifecycle Management solutions. Determine announced customers in its portfolio across key verticals including financial, web hosting, transportation, pharmaceutical and real estate, among others.
  • New Global Alliance Leadership: On May 2, 2017, Determine appointed Sean Regan as Vice President of Global Alliances. Sean brings over a decade of strategic alliance, business development and sales management experience in the technology and SaaS sector to Determine. He most recently held senior positions at SciQuest (now JAGGAER), Spend Radar (acquired by SciQuest) and CDW, a multi-brand technology solutions provider.
  • Determine Expands Platformance Footprint with Determine Cloud Platform 17.6 Release: The 17.6 Release of the Determine Cloud Platform further expands the advanced capabilities Determine customers have for Source-to-Pay efficiency and effectiveness. Each new release of the Determine Cloud Platform opens up additional potential for organizations seeking the most innovative solutions to their immediate and long-term challenges. Determine Cloud Platform Release 17.6 continues to dial up the innovation – and capabilities – available to firms.
  • Determine Continues Thought Leadership: In Q1 FY2018, Determine continued to provide meaningful educational resources to inform our customers and prospects on the ever-changing Source-to-Pay and Enterprise Contract Lifecycle Management landscape:

Conference Call and Webcast Thursday, August 10, 2017 at 5:00 PM (Eastern Time)

Participant Conference Call Numbers:
Toll-Free: 1-877-407-0789
Toll/International: 1-201-689-8562
Participant Webcast Link: http://public.viavid.com/index.php?id=125745

Replay Dial-in Information:

Toll-Free: 1-844-512-2921
Toll/International: 1-412-317-6671
From: 08/10/17 @ 8:00 pm Eastern Time
To: 08/17/17 @ 11:59 pm Eastern Time
Replay Pin Number: 13667846
Related: http://investor.determine.com

Non-GAAP Financial Measures

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross profit, non-GAAP net income and non-GAAP earnings per share, which we believe are helpful in understanding our past financial performance and future results. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “GAAP to Non-GAAP Reconciliations”. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

The difference between GAAP and non-GAAP revenue is due to the impact of revaluing the deferred revenue balances acquired from primarily b-pack as required by GAAP purchase accounting.

The difference between GAAP and non-GAAP gross profit is the difference in GAAP versus non-GAAP revenues as well as the elimination of the amortization of acquisition related intangibles, stock based compensation and severance expense from the costs of revenue. Non-GAAP net loss excludes the non-GAAP gross profit items as well as acquisition related costs.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand and manage our business and forecast future periods; as such, we believe it is useful for investors to understand the effects of these items on our total operations. Further, please note that our non-GAAP revenue is intended to reflect the full amount of revenues that would have been otherwise recorded by the acquired entities of Iasta and b-pack, while our non-GAAP gross profit also excludes the amortization of intangibles that occurred due to the acquisition of the entities of Iasta and b-pack.

Annualized Bookings are an operating measure not derived from the company’s revenues or any other amounts presented in accordance with GAAP in the company’s statement of income, balance sheet or statement of cash flows or other equivalent statements.

Forward-looking Statements

Certain statements in this release and elsewhere by Determine are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding business outlook, assessment of market conditions, anticipated financial and operating results, strategies, product and channel development, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to fluctuations in demand for Determine’s products and services, risks of losing key personnel or customers, protection of the company’s intellectual property and government policies and regulations, including, but not limited to those affecting the company’s industry. Determine undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the company can be found in the company’s most recent Form 10-K as filed by the company with the Securities and Exchange Commission.

Supporting Resources

Determine blog
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Determine Resources

About Determine, Inc.

Determine, Inc. (NASDAQ: DTRM) is a leading global provider of SaaS Source-to-Pay and Enterprise Contract Lifecycle Management (ECLM) solutions. The Determine Cloud Platform provides procurement, legal and finance professionals analytics of their supplier, contract and financial performance. Our technologies empower customers to drive new revenue, identify savings, improve compliance and mitigate risk.

The Determine Cloud Platform seamlessly integrates with major ERP or third-party systems such as SAP, Oracle, Sage, QAD and Microsoft. Modular solutions can be configured to add more as needed to provide additional value beyond spend management. Our unified master database and business process approach empower users at every level to make more informed and smarter decisions.

For more information, please visit: www.determine.com.

Contact

Media Relations:
Rose Lee
Determine Inc.
+1.650.532.1590
pr@determine.com

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