Xoom Reports First Quarter 2014 Results

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- Revenue of $35.9 Million, increase of 48% from Q1 2013

- Gross Sending Volume of $1.6 Billion, increase of 49% from Q1 2013

- 1,130,367 Active Customers, increase of 34% from Q1 2013

SAN FRANCISCO, April 22, 2014 (GLOBE NEWSWIRE) -- Xoom Corporation (Nasdaq:XOOM), a leading digital money transfer provider, today announced financial results for the first quarter of 2014:

  • Revenue for the first quarter was $35.9 million, an increase of 48% from the first quarter of 2013.
  • Gross profit for the first quarter was $26.4 million, an increase of 57% from the first quarter of 2013.
  • GAAP net income for the first quarter was $0.4 million, or $0.01 per diluted share, compared to a net loss of $79,000, or $0.00 per diluted share, for the first quarter of 2013.
  • Adjusted EBITDA for the first quarter was $3.5 million, compared to $1.6 million for the first quarter of 2013.
  • Non-GAAP earnings per diluted share for the first quarter was $0.06, compared to $0.02 per diluted share for the first quarter of 2013.
  • Cash, cash equivalents, disbursement prefunding and short-term investments were $243.5 million as of March 31, 2014, compared to $249.5 million as of December 31, 2013.
  • As of March 31, 2014 and December 31, 2013, we had no outstanding balance under our line of credit.

"We had a solid first quarter with continued momentum from mobile channels and high quality additions to our payout network generating strong financial results," said John Kunze, president and chief executive officer, Xoom. "Risk management continues to be a critical differentiator for Xoom. With our industry best loss management, we are able to ensure a seamless consumer experience, while delivering our services at consistently faster speeds, on great margins."

Operating Metrics

  • Gross sending volume for the quarter grew 49% to $1.6 billion from the first quarter of 2013.
  • Transactions for the quarter grew 42% to 2,896,639 from the first quarter of 2013.
  • Active customers for the quarter grew 34% to 1,130,367 from the first quarter of 2013.
  • New customers for the quarter grew 7% to 117,095 from the first quarter of 2013.

Highlights and Strategic Announcements

During the quarter, Xoom expanded its payout network and service innovations.

  • Xoom partnered with Metrobank and Philippine National Bank (PNB) to offer instant deposits to Metrobank and PNB bank accounts in the Philippines, which, in addition to Xoom's instant bank deposit service to BDO, provides Xoom customers the ability to instantly send money directly into their recipients' accounts at three of the top five banks in the Philippines.
  • Xoom partnered with HDFC Bank Limited to offer instant deposits to Rupee-denominated HDFC Bank accounts in India. This breakthrough service allows Xoom customers to instantly deposit money into their recipients' HDFC Bank accounts in India 24 hours a day, seven days a week, 365 days a year, including bank holidays.
  • Xoom partnered with Banco Popular Dominicano to offer deposit services to the bank's checking and savings accounts in usually less than 15 minutes to the Dominican Republic and cash pick up services at more than 200 locations across the island, expanding Xoom's total cash pickup network in the Dominican Republic to 576 locations.

Business Outlook

For Q2 2014, Xoom is targeting the following:

  • Revenue to be between $38.0 million and $40.0 million.
  • Adjusted EBITDA to be between $2.0 million and $4.0 million.
  • GAAP diluted net income (loss) per share to be in the range of $(0.04) to $0.01.
  • Non-GAAP diluted net income per share to be in the range of $0.02 to $0.06.

For Full Year 2014, Xoom is targeting the following:

  • Revenue to be between $157.0 million and $162.0 million.
  • Adjusted EBITDA to be between $12.0 million and $15.0 million.
  • GAAP diluted net loss per share to be in the range of $0.09 to $0.02.
  • Non-GAAP diluted net income per share to be in the range of $0.15 to $0.22.

Conference Call

Xoom plans to host a conference call today to review its first quarter 2014 results and to discuss its financial outlook for the second quarter and full year 2014. The conference call can be accessed by dialing the toll free number (877) 440-7574 or the international number (253) 237-1314. The call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed via the Web at ir.xoom.com. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 60 days.

About Xoom

Xoom is a leading digital money transfer provider in 31 countries, focused on helping consumers send money in a secure, fast and cost-effective way using their mobile phone, tablet or computer. During the 12 month period ended March 31, 2014, Xoom's more than 1.1 million active customers sent more than $6.1 billion to family and friends. The company is headquartered in San Francisco and can be found online at www.xoom.com.

Forward-Looking Statements

This press release and Xoom's scheduled conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Xoom, including, but not limited to, its expectations regarding its expansion into new markets and services, market demand, future earnings, revenue and financial and operating metrics. These forward-looking statements are based upon the current expectations and beliefs of Xoom's management as of the date of this press release and conference call, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release and during the conference call are based on information available to Xoom as of the date thereof, and Xoom disclaims any obligation to update these forward-looking statements.

In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the evolving nature of the industry in which Xoom operates; its failure to attract new customers or retain existing customers; economic, political or regulatory factors beyond its control, in the U.S. or in countries to which its customers transfer money; fluctuations in foreign exchange rates; competitive pricing and marketing strategies by competitors; the adoption of competing technologies that supplant its services; the use of its services for illegal or improper purposes; the failure of partners to disburse funds according to Xoom's instructions; its ability to contract for third-party services on commercially reasonable terms; the maintenance of its payment network on terms consistent with those currently in place or newly adopted regulations in the U.S or in countries to which its customers transfer money; increases in transaction processing fees; declines in customer confidence in its business or in money transfer providers generally; its ability to protect its intellectual property; the adoption of mobile phones and devices to access information on the Internet and use of its services; potential breaches of its security systems; and other risks and uncertainties.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to Xoom's Annual Report on Form 10-K for the year ended December 31, 2013 and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system ("EDGAR") at www.sec.gov or Xoom's website at www.xoom.com.

Non-GAAP Financial Measures

Xoom's stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share. Adjusted EBITDA excludes provision for income taxes, interest expense, interest income, amortization of acquired intangible asset, depreciation and other amortization expense, and expenses related to stock-based compensation. Non-GAAP net income excludes expenses related to stock-based compensation and amortization of acquired intangible asset. Adjusted EBITDA and Non-GAAP net income exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. Xoom believes these adjustments provide useful comparative information to investors.

Xoom considers these non-GAAP financial measures to be important because they provide useful measures of its operating performance and are used by its management for that purpose. In addition, investors often use measures such as these to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding Xoom's operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

(Xoom-f)

Contacts:

Sharrifah Al-Salem
Director of Investor Relations
IR@xoom.com

Robin Carr
Director of Public Relations
PR@xoom.com

XOOM CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
March 31, December 31,
2014 2013
(derived from
audited financial
(unaudited) statements)
Assets
Current assets:
Cash and cash equivalents $ 98,010 $ 110,979
Disbursement prefunding 38,722 33,799
Short-term investments 106,767 104,678
Customer funds receivable 29,389 16,381
Prepaid expenses and other current assets 5,066 4,237
Total current assets 277,954 270,074
Non-current assets:
Property, equipment and software, net 5,254 4,855
Goodwill 9,032 --
Intangibles, net 5,746 250
Restricted cash 10,968 7,816
Other assets 966 1,084
Total assets $ 309,920 $ 284,079
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 9,220 $ 8,345
Customer liabilities 25,628 10,791
Total current liabilities 34,848 19,136
Non-current liabilities:
Other non-current liabilities 2,309 99
Total liabilities 37,157 19,235
Commitments and Contingencies
Stockholders' equity:
Convertible preferred stock, $0.0001 par value, 25,000,000 shares authorized; issued and outstanding 0 shares; aggregate liquidation preference $0 at March 31, 2014 and December 31, 2013 -- --
Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 37,983,793 and 37,583,945 shares at March 31, 2014 and December 31, 2013, respectively 4 4
Additional paid-in capital 329,450 321,878
Accumulated other comprehensive loss (5) --
Accumulated deficit (56,686) (57,038)
Total stockholders' equity 272,763 264,844
Total liabilities and stockholders' equity $ 309,920 $ 284,079
XOOM CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
2014 2013
(unaudited)
Revenue $ 35,938 $ 24,315
Cost of revenue 9,578 7,519
Gross profit 26,360 16,796
Marketing 8,782 5,692
Technology and development 7,850 4,834
Customer service and operations 3,974 3,017
General and administrative 5,158 2,923
Total operating expense 25,764 16,466
Income from operations 596 330
Other income (expense):
Interest expense (328) (447)
Interest income 76 36
Other income 20 4
Income (loss) before provision for income taxes 364 (77)
Provision for income taxes 12 2
Net income (loss) $ 352 $ (79)
Net income (loss) per share:
Basic $ 0.01 $ (0.00)
Diluted $ 0.01 $ (0.00)
Weighted-average shares used to compute net income (loss) per share:
Basic 37,799 19,041
Diluted 41,710 19,041
XOOM CORPORATION AND SUBSIDIARIES
Key Metrics
Three Months Ended
March 31,
2014 2013
(unaudited)
Other Financial and Operational Data:
Gross Sending Volume $ 1,576,690,682 $ 1,055,847,000
Transactions 2,896,639 2,039,000
Active Customers 1,130,367 841,819
New Customers 117,095 109,631
Cost Per Acquisition of a New Customer $ 56 $ 40
Adjusted EBITDA (in thousands) $ 3,523 $ 1,574
XOOM CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Operating Results
Three Months Ended
March 31,
2014 2013
(In thousands, except per share data)
(unaudited)
Non-GAAP net income (loss) per share:
GAAP net income (loss) $ 352 $ (79)
Add back: stock-based compensation 1,924 778
Add back: amortization of acquired intangible asset 204 --
Non-GAAP net income $ 2,480 $ 699
Non-GAAP diluted net income per share $ 0.06 $ 0.02
Non-GAAP diluted shares 41,710 34,459
Reconciliation of Adjusted EBITDA:
Net income (loss) $ 352 $ (79)
Provision for income taxes 12 2
Interest expense 328 447
Interest income (76) (36)
Amortization of acquired intangible asset 204 --
Depreciation and other amortization expense 779 462
Stock-based compensation 1,924 778
Adjusted EBITDA $ 3,523 $ 1,574
XOOM CORPORATION AND SUBSIDIARIES
Forward-Looking Guidance
Three Months Ending Twelve Months Ending
June 30, 2014 December 31, 2014
From To From To
(In thousands, except per share data)
Net income (loss) per share:
GAAP net income (loss) $ (1,673) $ 325 $ (3,615) $ (618)
Add back: stock-based compensation 2,253 2,253 9,283 9,283
Add back: amortization of acquired intangible asset 204 204 814 814
Non-GAAP net income $ 784 $ 2,782 $ 6,482 $ 9,479
GAAP diluted net income (loss) per share $ (0.04) $ 0.01 $ (0.09) $ (0.02)
Non-GAAP diluted net income per share $ 0.02 $ 0.06 $ 0.15 $ 0.22
GAAP diluted shares 38,294 43,128 38,625 38,625
Non-GAAP diluted shares 43,128 43,128 43,029 43,029
Adjusted EBITDA:
GAAP net income (loss) $ (1,673) $ 325 $ (3,615) $ (618)
Provision for income taxes -- -- 12 12
Interest expense 350 351 1,379 1,381
Interest income (101) (100) (377) (376)
Amortization of acquired intangible asset 204 204 814 814
Depreciation and other amortization expense 967 967 4,504 4,504
Stock-based compensation 2,253 2,253 9,283 9,283
Adjusted EBITDA $ 2,000 $ 4,000 $ 12,000 $ 15,000

Source:Xoom Corporation