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Actua Announces Second Quarter 2017 Financial Results

RADNOR, Pa., Aug. 09, 2017 (GLOBE NEWSWIRE) -- Actua Corporation (Nasdaq:ACTA) (“Actua”) today reported its results for the second quarter ended June 30, 2017.

“We are pleased with the results we achieved in the second quarter,” said Walter Buckley, CEO of Actua. “Our performance in the first half of 2017 was in line with our expectations. We are well-positioned to continue building shareholder value by driving profitable growth at our businesses.”

Revenue was $31.2 million for the second quarter of 2017, up from $26.9 million for the second quarter of 2016. Net loss attributable to Actua for the second quarter of 2017 was $(6.9) million, or $(0.22) per diluted share, compared to a net loss attributable to Actua of $(12.7) million, or $(0.35) per diluted share, for the comparable prior year quarter. Non-GAAP net loss for the second quarter of 2017 was $(0.4) million, or $(0.01) per diluted share, as compared to a non-GAAP net loss of $(2.6) million, or $(0.07) per diluted share, for the comparable prior year quarter. Cash flows from operations was a source of $0.1 million for the second quarter of 2017, compared to a use of $(2.7) million for the second quarter of 2016.

Revenue was $61.7 million for the first half of 2017, up from $52.0 million for the first half of 2016. Net loss attributable to Actua for the first half of 2017 was $(16.5) million, or $(0.52) per diluted share, compared to a net loss attributable to Actua of $(27.1) million, or $(0.73) per diluted share, for the first half of 2016. Non-GAAP net loss for the first half of 2017 was $(2.2) million, or $(0.07) per diluted share, compared to a non-GAAP net loss of $(6.0) million, or $(0.16) per diluted share, for the first half of 2016. Cash flows from operations for the first half of 2017 was $(3.0) million, compared to $(6.6) million for the first half of 2016.

During the three months ended June 30, 2017, Actua deployed $13.6 million to repurchase approximately 970,000 shares. Since July 1, 2017, Actua has deployed an additional $5.3 million to repurchase approximately 380,000 shares, resulting in year-to-date share repurchase totals of $30.3 million and approximately 2,175,000 shares.

2017 Guidance

Actua continues to expect 2017 annual GAAP revenue in the range of between $125 million and $130 million, representing a range of between 14% and 19% growth from 2016. Actua continues to expect 2017 annual GAAP cash flow from operations in the range of between a use of $(2.0) million and a source of $2.0 million. Actua continues to expect 2017 annual non-GAAP net income (loss) per share to be in the range of between $(0.10) and $(0.15) per diluted share.

A reconciliation of the non-GAAP financial measures used above with the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Please see Actua’s website at www.actua.com for more information on Actua, its businesses and its second quarter 2017 results.

Actua will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, Actua will post a slide presentation to accompany the prepared remarks. To access the webcast, go to www.actua.com/investors/events-presentations/ and click on the webcast link. Please log on to the website approximately ten minutes prior to the call to register and download any necessary audio software. The conference call is also accessible through listen-only mode by dialing 800.708.4540 or 847.619.6397. The passcode is 45230970.

For those unable to participate in the conference call, a replay will be available from August 9, 2017 at 12:30 p.m. ET until August 16, 2017 at 11:59 p.m. ET. To access the replay, dial 888.843.7419 or 630.652.3042. The passcode is 45230970#. The replay and slide presentation also can be accessed in the investor relations section of the Actua website at www.actua.com/investors/events-presentations/.

About Actua
Actua Corporation (Nasdaq:ACTA), the multi-vertical cloud company, brings the power of the cloud to vertical markets and processes. Actua is pioneering the second wave of the SaaS revolution - the vertical wave - by growing cloud businesses that are transforming their markets. With approximately 700 employees delivering unrivaled domain knowledge, agility and responsiveness to our customers, Actua’s rapidly growing vertical cloud businesses are positioned to lead this wave. For the latest information about Actua and its brands, please go to www.actua.com.

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, risks associated with our ability to compete successfully in highly-competitive, rapidly-developing markets, the valuation of public and private cloud-based businesses by analysts, investors and other market participants, our ability to deploy capital effectively and on acceptable terms, the effect of economic conditions generally, capital spending by our customers, our ability to retain existing customer relationships and revenue streams and secure new ones, developments in the markets in which we operate and our ability to respond to those changes in a timely and effective manner, the availability, performance and security of our cloud-based technology, particularly in light of increased cybersecurity risks and concerns, our ability to retain key personnel, our ability to successfully integrate any acquired business, the impact of any potential acquisitions, dispositions, share repurchases or other strategic transactions, our ability to have continued access to capital and to manage capital resources effectively, and other risks and uncertainties detailed in Actua's filings with the U.S. Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.


Actua Corporation
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2017 2016 2017 2016
Revenue $31,189 $26,854 $61,696 $52,040
Operating expenses
Cost of revenue (a) 7,884 7,288 15,678 14,010
Sales and marketing (a) 9,763 10,461 19,670 20,580
General and administrative (a) 11,786 11,372 24,718 23,698
Research and development (a) 6,911 5,388 13,644 10,695
Amortization of intangible assets 4,333 3,626 7,996 7,208
Impairment related and other 310 117 670 348
Total operating expenses 40,987 38,252 82,376 76,539
Operating income (loss) (9,798) (11,398) (20,680) (24,499)
Other income (expense):
Other income (loss), net 2,558 (15) 3,425 (105)
Interest income 142 39 297 87
Interest expense (44) (33) (71) (66)
Income (loss) before income taxes and noncontrolling interests(7,142) (11,407) (17,029) (24,583)
Income tax benefit (expense) (184) (72) (449) (198)
Income (loss) from continuing operations(7,326) (11,479) (17,478) (24,781)
Income (loss) from discontinued operations, net of tax (2,079) (4,160)
Net income (loss) (7,326) (13,558) (17,478) (28,941)
Less: Net income (loss) attributable to the noncontrolling interests(463) (817) (945) (1,869)
Net income (loss) attributable to Actua $(6,863) $(12,741) $(16,533) $(27,072)
Amounts attributable to Actua common shareholders:
Net income (loss) from continuing operations$(6,863) $(10,763) $(16,533) $(23,123)
Net income (loss) from discontinued operations (1,978) (3,949)
Net income (loss) attributable to Actua common shareholders$(6,863) $(12,741) $(16,533) $(27,072)
Basic and diluted net income (loss) per share:
Income (loss) from continuing operations attributable to Actua common shareholders $(0.22) $(0.30) $(0.52) $(0.62)
Income (loss) from discontinued operations attributable to Actua common shareholders (0.05) (0.11)
Income (loss) attributable to Actua common shareholders $(0.22) $(0.35) $(0.52) $(0.73)
Shares used in computation of basic and diluted net income (loss) per common share attributable to Actua common shareholders 31,267 36,760 31,687 37,027
(a) Includes equity-based compensation of:
Cost of revenue $35 $22 $137 $54
Sales and marketing 100 72 192 160
General and administrative 3,552 3,554 7,041 7,977
Research and development 165 102 247 216
$3,852 $3,750 $7,617 $8,407


Actua Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, December 31,
2017 2016
ASSETS
Cash and cash equivalents $68,903 $97,364
Restricted cash 1,435 1,648
Accounts receivable, net 20,031 21,033
Prepaid expenses and other current assets 3,256 3,673
Total current assets 93,625 123,718
Fixed assets, net 4,884 5,359
Goodwill 231,424 231,787
Intangible assets, net 64,962 73,406
Deferred tax asset 737 762
Cost method businesses 17,473 17,250
Other assets, net 1,534 1,436
Total Assets $414,639 $453,718
LIABILITIES AND EQUITY
Short-term debt $1,320 $1,320
Accounts payable 12,582 12,269
Accrued expenses 9,533 10,149
Accrued compensation and benefits 5,948 8,381
Deferred revenue 37,603 35,834
Total current liabilities 66,986 67,953
Deferred rent 4,166 4,165
Deferred revenue 933 990
Contingent consideration 8,065 7,444
Other liabilities 1,532 1,824
Total Liabilities 81,682 82,376
Redeemable noncontrolling interests 5,927 5,858
Total Equity 327,030 365,484
Total Liabilities, Redeemable noncontrolling interests and Equity $414,639 $453,718


Actua Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2017 2016 2017 2016
OPERATING ACTIVITIES - Continuing Operations
Net income (loss) $(7,326) $(13,558) $(17,478) $(28,941)
Income (loss) from discontinued operations, net of tax 2,079 4,160
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization 4,925 4,230 9,172 8,331
Equity-based compensation 3,852 3,750 7,617 8,407
Impairment related and other 310 179 312 394
Other (income) loss, net (2,558) 15 (3,425) 105
Deferred tax asset (35) 57 25 52
Contingent consideration 16 358 32
Changes in operating assets and liabilities - net of acquisitions:
Accounts receivable, net 1,167 (331) 971 (1,091)
Prepaid expenses and other assets 150 (1,220) 281 (1,857)
Accounts payable (995) 32 364 (2)
Accrued expenses (950) (1,699) (473) (639)
Accrued compensation and benefits 193 583 (2,510) (4,039)
Deferred revenue 1,322 1,510 1,639 4,633
Other liabilities 27 1,673 163 3,840
Cash flows provided by (used in) operating activities 82 (2,684) (2,984) (6,615)
INVESTING ACTIVITIES - Continuing Operations
Capital expenditures (582) (702) (765) (1,636)
Change in restricted cash 211 699 301 551
Proceeds from sales/distribution of ownership interests 2,694 3,652 46
Ownership acquisition, net of cash acquired (265) (72) (515) (2,222)
Cash flows provided by (used in) investing activities 2,058 (75) 2,673 (3,261)
FINANCING ACTIVITIES - Continuing Operations
Acquisition of noncontrolling interests in subsidiary equity (112) (5,578)
Payments of contingent consideration (1,464) (1,464)
Repayment of capital lease obligations (8)
Purchase of treasury stock (13,629) (5,485) (25,088) (9,533)
Tax withholdings related to equity-based awards (10) (7) (2,896) (1,536)
Financing activities with discontinued operations, net 496 (2,004)
Cash flows provided by (used in) financing activities (13,639) (6,460) (28,104) (20,115)
Effect of exchange rate on cash and cash equivalents (34) (38) (46) (112)
Net increase (decrease) in cash and cash equivalents from continuing operations (11,533) (9,257) (28,461) (30,103)
Discontinued Operations
Cash flows provided by (used in) operating activities 4,211 (4,923)
Cash flows provided by (used in) investing activities (368) (447)
Cash flows provided by (used in) financing activities (4,654) 2,384
Net increase (decrease) in cash and cash equivalents from discontinued operations (811) (2,986)
Cash and cash equivalents at beginning of period - discontinued operations 1,681 3,856
Less: cash and cash equivalents at end of period - discontinued operations 870 870
Cash and cash equivalents at beginning of period 80,436 51,611 97,364 72,457
Cash and cash equivalents at end of period $68,903 $42,354 $68,903 $42,354


Actua Corporation
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
20162017
Q1Q2Q3Q4Q1Q2
GAAP net income (loss) attributable to Actua:$(14,331)$(12,741)$(10,074)$107,231 $(9,670)$(6,863)
Add back:
Share-based compensation4,657 3,750 3,026 2,625 3,765 3,852
Amortization of intangibles3,582 3,626 3,524 3,652 3,663 4,333
Impairment related and other costs125 119 45 456 628 312
Transaction expenses47 106 630 262 189 88
Other (income) loss, net90 15 (2,831)(131)(867)(2,558)
Acquired businesses' deferred revenue476 483 478 539 471 469
Impact of non-cash income tax (benefit) expense items 88 39 (13,981)19 7
Loss (income) from discontinued operations2,081 2,079 3,842 (102,019)
Impact of non-controlling interests (NCI) for discontinued operations(110)(101)(235)(832)
Non-GAAP net income (loss)$(3,383)$(2,576)$(1,556)$(2,198)$(1,802)$(360)
GAAP net income (loss) per diluted share:$(0.38)$(0.35)$(0.27)$2.94 $(0.30)$(0.22)
Add back:
Share-based compensation0.12 0.10 0.08 0.07 0.12 0.13
Amortization of intangibles0.10 0.10 0.10 0.10 0.11 0.14
Impairment related and other costs 0.01 0.01 0.02 0.01
Transaction expenses 0.02 0.01 0.01
Other (income) loss, net (0.08) (0.03)(0.08)
Acquired businesses' deferred revenue0.01 0.01 0.01 0.01 0.01 0.01
Impact of non-cash income tax (benefit) expense items (0.38)
Loss (income) from discontinued operations0.06 0.06 0.10 (2.80)
Impact of non-controlling interests (NCI) for discontinued operations (0.02)
Non-GAAP net income (loss) per diluted share$(0.09)$(0.07)$(0.04)$(0.06)$(0.06)$(0.01)
Shares used in calculation of GAAP net income (loss) per share attributable to Actua:
Basic37,293 36,760 36,776 35,865 32,113 31,267
Diluted37,293 36,760 36,776 36,421 32,113 31,267
Shares used in calculation of non-GAAP net income (loss) per share attributable to Actua:
Basic37,293 36,760 36,776 35,865 32,113 31,267
Diluted37,293 36,760 36,776 35,865 32,113 31,267


Actua Corporation
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Continued)
(In thousands, except per share data)
(Unaudited)
20162017
Q1Q2Q3Q4Q1Q2
GAAP net income (loss) attributable to Actua:$(14,331)$(12,741)$(10,074)$107,231 $(9,670)$(6,863)
Add back:
Share-based compensation4,657 3,750 3,026 2,625 3,765 3,852
Amortization of intangibles3,582 3,626 3,524 3,652 3,663 4,333
Impairment related and other costs125 119 45 456 628 312
Transaction expenses47 106 630 262 189 88
Other (income) loss, net90 15 (2,831)(131)(867)(2,558)
Acquired businesses' deferred revenue476 483 478 539 471 469
Impact of non-cash income tax (benefit) expense items 88 39 (13,981)19 7
Loss (income) from discontinued operations2,081 2,079 3,842 (102,019)
Impact of non-controlling interests (NCI) for discontinued operations(110)(101)(235)(832)
Interest expense (income), net(15)45 (4)(162)(128)(98)
Income tax expense (current/cash only)24 146 (6)480 246 176
Depreciation515 555 558 569 578 592
Adjusted EBITDA$(2,859)$(1,830)$(1,008)$(1,311)$(1,106)$310
GAAP Cost of revenue$6,722 $7,288 $7,441 $7,735 $7,794 $7,884
Share-based compensation32 22 21 32 102 35
Adjusted Cost of revenue$6,690 $7,266 $7,420 $7,703 $7,692 $7,849
GAAP Sales and marketing$10,119 $10,461 $10,281 $9,946 $9,907 $9,763
Share-based compensation88 72 73 82 92 100
Adjusted Sales and marketing$10,031 $10,389 $10,208 $9,864 $9,815 $9,663
GAAP General and administrative$12,326 $11,372 $11,228 $12,010 $12,932 $11,786
Share-based compensation4,423 3,554 2,827 2,370 3,489 3,552
Adjusted General and administrative$7,903 $7,818 $8,401 $9,640 $9,443 $8,234
GAAP Research and development$5,307 $5,388 $5,411 $5,536 $6,733 $6,911
Share-based compensation114 102 105 141 82 165
Adjusted Research and development$5,193 $5,286 $5,306 $5,395 $6,651 $6,746

About Actua’s Non-GAAP Financial Measures

This release contains non-GAAP financial measures. The tables above reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Non-GAAP financial measures should not be considered as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Actua strongly urges investors and potential investors in our securities to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures that are included in this release.

Actua’s management believes that its non-GAAP financial measures provide useful information to investors because they allow investors to view the business through the eyes of management and provide meaningful supplemental information regarding Actua’s operating results, as they exclude amounts that Actua excludes as part of its monitoring of operating results and assessment of the performance of the business.

Actua presents the following non-GAAP financial measures in this release: (1) non-GAAP net income (loss) (which term may be used interchangeably with adjusted net income (loss) by management during quarterly earnings presentations), (2) non-GAAP net income (loss) per diluted share (which term may be used interchangeably with adjusted net income (loss) per diluted share by management during quarterly earnings presentations), (3) Adjusted EBITDA, (4) Adjusted Cost of revenue, (5) Adjusted Sales and marketing, (6) Adjusted General and administrative and (7) Adjusted Research and development. Actua excludes items from these non-GAAP financial measures as described below.

Non-GAAP net income (loss) excludes the following items from GAAP net income (loss):

  • Share-based compensation. Actua excludes share-based compensation expenses and other expenses associated with equity granted to employees and non-employee directors primarily because they are non-cash expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and the exclusion of these expenses facilitates the comparison of results over different time periods and the comparison of Actua’s results with results of other companies.

  • Amortization of intangibles. Actua excludes amortization of acquired intangibles, which consists primarily of customer relationships and technology, because they are expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and Actua believes that doing so facilitates comparisons to its historical operating results and to the results of other companies.

  • Impairment related and other costs. Actua excludes the effect of impairment related and other costs, which primarily include impairment charges, revaluation of contingent consideration, restructuring and severance fees, settlement costs and other one-time costs, because Actua does not consider them part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on Actua’s operations.

  • Transaction expenses. Actua excludes the effect of acquisition related expenses because Actua does not consider them part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on Actua’s operations.

  • Other income (loss), net. Actua excludes the effect of other income (loss), net, which primarily includes transaction-driven gains and losses, as well as certain foreign currency impacts, because Actua does not consider them part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on Actua’s operations.

  • Acquired businesses’ deferred revenue. Actua includes acquired businesses’ previously deferred revenues that are not recognized under GAAP because Actua considers them a part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on its operations.

  • Impact of non-cash income tax benefit items. Actua excludes the impact of any non-cash income tax benefit items as Actua believes it is useful for investors to understand the effect of this item and does not consider them a part of ongoing operating results when assessing the performance of its business.

  • Loss (income) from discontinued operations. Actua excludes the loss (income) from discontinued operations as Actua believes it is useful for investors to understand the effect of these items for all periods presented and does not consider them a part of ongoing operating results when assessing the performance of its business.

  • Impact of non-controlling interests (NCI) for discontinued operations. Actua did not own 100% of the discontinued operations presented. Therefore, Actua excludes the impact of the NCI on discontinued operations as Actua believes it is useful for investors to understand the effect of this item for all periods presented as compared to what has historically been provided as Actua does not consider them a part of ongoing operating results when assessing the performance of its business.

Non-GAAP net income (loss) per diluted share is calculated as follows:

  • Non-GAAP net income (loss) (as defined above) is the numerator.

  • Shares used in calculation of non-GAAP net income (loss) per diluted share. For periods where GAAP and non-GAAP net income (loss) are both losses, Actua uses the same number of shares used to calculate GAAP and non-GAAP net loss per share. For periods where GAAP and non-GAAP net income (loss) are both income, Actua uses the same number of shares used to calculate GAAP and non-GAAP net income per diluted share. For periods where GAAP net income (loss) is a loss but non-GAAP net income (loss) is income, Actua includes the impact of incremental dilutive securities for the period to determine non-GAAP net income per diluted share. For periods where GAAP net income (loss) is income but non-GAAP net income (loss) is a loss, Actua excludes the impact of incremental dilutive securities for the period to determine non-GAAP net loss per diluted share.

Adjusted EBITDA excludes the following items from GAAP net income (loss):

  • Share-based compensation. Actua excludes share-based compensation expenses and other expenses associated with equity granted to employees and non-employee directors primarily because they are non-cash expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and the exclusion of these expenses facilitates the comparison of results over different time periods and the comparison of Actua’s results with results of other companies.

  • Amortization of intangibles. Actua excludes amortization of acquired intangibles, which consists primarily of customer relationships and technology, because they are expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and Actua believes that doing so facilitates comparisons to its historical operating results and to the results of other companies.

  • Impairment related and other costs. Actua excludes the effect of impairment related and other costs, which primarily include impairment charges, restructuring and severance fees, settlement costs and other one-time costs, because Actua does not consider them part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on Actua’s operations.

  • Transaction expenses. Actua excludes the effect of acquisition related expenses because Actua does not consider them part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on Actua’s operations.

  • Other income (loss), net. Actua excludes the effect of other income (loss), net, which primarily includes transaction-driven gains and losses and revaluation of contingent consideration, as well as certain foreign currency impacts because Actua does not consider them part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on Actua’s operations.

  • Acquired businesses’ deferred revenue. Actua includes acquired businesses’ previously deferred revenues that are not recognized under GAAP because Actua considers them a part of ongoing operating results when assessing the performance of its business and believes it is useful for investors to understand the effects of these items on its operations.

  • Impact of non-cash income tax benefit items. Actua excludes the impact of any non-cash income tax benefit items as Actua believes it is useful for investors to understand the effect of this item and Actua does not consider them a part of ongoing operating results when assessing the performance of its business.

  • Loss (income) from discontinued operations. Actua excludes the loss (income) from discontinued operations as Actua believes it is useful for investors to understand the effect of these items for all periods presented and does not consider them a part of ongoing operating results when assessing the performance of its business.

  • Impact of non-controlling interests (NCI) for discontinued operations. Actua did not own 100% of the discontinued operations presented. Therefore, Actua excludes the impact of the NCI on discontinued operations as Actua believes it is useful for investors to understand the effect of this item for all periods presented as compared to what has historically been provided as Actua does not consider them a part of ongoing operating results when assessing the performance of its business.

  • Interest expense (income), net. Actua excludes income and expense from interest as Actua believes it is useful for investors to understand the effect of these items for all periods presented and does not consider them a part of ongoing operating results when assessing the performance of its business.

  • Income tax expense (current/cash only). Actua excludes the impact of any current, cash income tax expense as Actua believes it is useful for investors to understand the effect of this item and does not consider them a part of ongoing operating results when assessing the performance of its business.

  • Depreciation. Actua excludes depreciation expense as Actua believes it is useful for investors to understand the effect of these items for all periods presented and does not consider them a part of ongoing operating results when assessing the performance of its business.

Adjusted Cost of revenue excludes the following item from GAAP Cost of revenue operating expenses:

  • Share-based compensation. Actua excludes share-based compensation expenses and other expenses associated with equity granted to employees and non-employee directors in the cost of revenue category on Actua's statements of operations primarily because they are non-cash expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and the exclusion of these expenses facilitates the comparison of results over different time periods and the comparison of Actua’s results with results of other companies.

Adjusted Sales and marketing excludes the following item from GAAP Sales and marketing operating expenses:

  • Share-based compensation. Actua excludes share-based compensation expenses and other expenses associated with equity granted to employees and non-employee directors in the sales and marketing category on Actua's statements of operations primarily because they are non-cash expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and the exclusion of these expenses facilitates the comparison of results over different time periods and the comparison of Actua’s results with results of other companies.

Adjusted General and administrative excludes the following item from GAAP General and administrative operating expenses:

  • Share-based compensation. Actua excludes share-based compensation expenses and other expenses associated with equity granted to employees and non-employee directors in the general and administrative category on Actua's statements of operations primarily because they are non-cash expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and the exclusion of these expenses facilitates the comparison of results over different time periods and the comparison of Actua’s results with results of other companies.

Adjusted Research and development excludes the following item from GAAP Research and development operating expenses:

  • Share-based compensation. Actua excludes share-based compensation expenses and other expenses associated with equity granted to employees and non-employee directors in the research and development category on Actua's statements of operations primarily because they are non-cash expenses that Actua does not consider part of ongoing operating results when assessing the performance of its business, and the exclusion of these expenses facilitates the comparison of results over different time periods and the comparison of Actua’s results with results of other companies.

Actua believes that the following considerations apply to the non-GAAP financial measures that it presents:

  • Actua’s management uses non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, adjusted EBITDA, adjusted cost of revenue, adjusted sales and marketing, adjusted general and administrative and adjusted research and development in internal reports used by management in monitoring and making decisions regarding Actua’s business, including in monthly financial reports prepared for management and in periodic reports to Actua’s Board of Directors.

  • An important limitation of Actua’s non-GAAP financial measures is that they include acquired business deferred revenues and exclude expenses, some of which may be significant, that are required by GAAP to be recorded. In addition, non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which charges to exclude from the non-GAAP financial measures.

To mitigate the limitations associated with non-GAAP financial measures, Actua reconciles its non-GAAP financial measures to the nearest comparable GAAP financial measures and recommends that investors and potential investors do not give undue weight to its non-GAAP financial measures.


Investor inquiries: Karen Greene Actua Investor Relations 610.727.6900 IR@actua.com

Source:Actua Corporation