8-K
false 0001540755 0001540755 2020-08-26 2020-08-26

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 26, 2020

 

 

ANAPLAN, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-38698   27-0897861

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

50 Hawthorne Street

San Francisco, CA

  94105
(Address of principal executive office)   (Zip Code)

Registrant’s telephone number, including area code: (415) 742-8199

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.0001 par value per share   PLAN   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition.

On August 26, 2020, Anaplan, Inc. (the “Company” or “Anaplan”) issued a press release reporting its financial results for the fiscal quarter ended July 31, 2020. The press release is attached to this Current Report on Form 8-K as Exhibit 99.1.

As provided in General Instruction B.2 of Form 8-K, the information in this Item 2.02 and the exhibit hereto are “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 7.01

Regulation FD Disclosure.

Anaplan has issued a Supplemental Financial Information document. The Supplemental Financial Information is available on Anaplan’s Investor Center website at https://investors.anaplan.com. Anaplan management will hold a public webcast today at 5:30 a.m. Pacific Time that can be accessed on its Investor Center website at https://investors.anaplan.com. During today’s webcast, Anaplan will provide an outlook for its fiscal third quarter ending October 31, 2020 and for its full fiscal year ending January 31, 2021, including key underlying assumptions. A replay will be available on Anaplan’s Investor Center website at https://investors.anaplan.com shortly following the event’s conclusion. Investors and others should note that Anaplan routinely uses the Investor Center section of its corporate website to announce material information to investors and the marketplace. While not all of the information that Anaplan posts on its corporate website is of a material nature, some information could be deemed to be material. Accordingly, Anaplan encourages investors, the media, and others interested in Anaplan to review the information that it shares on its Investor Center.

As provided in General Instruction B.2 of Form 8-K, the information in this Item 7.01 is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of such section nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are attached to this Current Report on Form 8-K:

 

Exhibit

    No.    

    
99.1    Press release, dated August 26, 2020, of Anaplan, Inc.
104    Cover Page Interactive Data File (cover page XBRL tags embedded within the Inline XBRL document)


Cautionary Note Regarding Forward-Looking Statements

This Form 8-K contains 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, each as amended, including all statements other than statements of historical fact contained in this report and includes, without limitation, statements about the Company’s expectations regarding the impact of the COVID-19 pandemic and resulting global economic uncertainty, statements regarding market demand, market opportunity, competitive position including of the Company’s solutions compared to the offerings of competitors, use of the Company’s solutions and potential results of such use, statements about the Company’s plans, strategies and prospects, statements regarding growth and momentum, the financial outlook and guidance, which may include expected GAAP and non-GAAP financial and other results, for the Company’s third fiscal quarter ending October 31, 2020 and for the full fiscal year ending January 31, 2021 and the underlying assumptions, current expectations, projections and other statements about future events and trends including events and trends that we believe may affect our financial condition, results of operations, short- and long-term business operations and objectives, and financial needs. These statements identify prospective information and may include words such as “expects,” “intends,” “continue,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “should,” “may,” “will,” or the negative version of these words, variations of these words and comparable terminology. These forward-looking statements are based on information available to the Company as of the date of this report and are based on management’s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be beyond the Company’s control and may pose a risk to the Company’s operating and financial condition. Such risks and uncertainties include, but are not limited to: the ongoing COVID-19 pandemic, and resulting global economic downturn, has materially impacted how we, our customers, and our partners are operating, and could result in a material adverse effect on our business, financial condition, operating results and cash flows; we have a limited history of operating at our current scale and under our current strategy, which makes it difficult to predict our future operating results, and we may not achieve our expected operating results in the future; we have a history of net losses, we anticipate increasing our operating expenses in the future, and we do not expect to be profitable for the foreseeable future; our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business; economic uncertainty and volatility in the broader financial markets may result in our customers and prospective customers reducing their spending, scaling back their digital transformation efforts, delaying purchasing decisions or deferring implementation projects, any of which may adversely impact our business, financial condition and cash flows; if we are unable to achieve and sustain a level of liquidity sufficient to support our operations and fulfill our obligations, our business, operating results and financial position could be adversely affected; if we are unable to attract new customers, both domestically and internationally, the growth of our revenue will be adversely affected and our business may be harmed; our business depends substantially on our customers renewing their subscriptions and expanding their use of our platform and if we fail to achieve renewals and expansions or our customers renew or expand their subscriptions on less favorable terms, our business operations and financial condition may be materially and adversely affected; the markets in which we participate are intensely competitive, and if we do not compete effectively, our business and operating results could be adversely affected; our success depends in part on the continued performance of our strategic partners, and uncertain economic conditions including those caused by the COVID-19 pandemic may disrupt the operations and performance of our partners and ultimately adversely impact our financial results; if we experience a security incident, our platform may be perceived as not being secure, our reputation may be harmed, customers may reduce the use of or stop using our platform, we may incur significant liabilities, and our business could be materially adversely affected; real or perceived errors, failures, bugs, service outages, or disruptions in our platform could adversely affect our reputation and harm our business; our success depends upon training our customers to effectively utilize our platform and providing high-quality support services and if our ability to provide effective training or support is limited by the COVID-19 pandemic and ensuing remote work restrictions, then our results of operations and financial condition may be adversely affected; we could incur substantial costs in protecting or defending our intellectual property rights and any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand; our global operations and sales to customers outside the United States or with


international operations subject us to risks inherent in international operations that can harm our business, results of operations, and financial condition; and the uncertainty in and volatility of the broader stock market generally or the stock price of our common stock specifically may result in stockholders not being able to resell their shares at or above the price at which they purchased the shares. Furthermore, the additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may amplify many of these risks. Information concerning risks, uncertainties and other factors that could cause results to differ materially from the expectations described in this Form 8-K is contained in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its quarterly report on Form 10-Q filed with the SEC on June 4, 2020, and other documents the Company may file with or furnish to the SEC from time to time such as annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. These forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date and the Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.

The inclusion of Anaplan’s website address in this Form 8-K is intended to be an inactive textual reference only and not an active hyperlink. The information contained in, or that can be accessed through, Anaplan’s website and social media channels are not part of this Form 8-K.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

ANAPLAN, INC.
By:  

/s/ David H. Morton, Jr.

Name:

 

David H. Morton, Jr.

Title:   Executive Vice President and Chief Financial Officer
  (Principal Financial Officer)

Date: August 26, 2020

EX-99.1

Exhibit 99.1

Anaplan Announces Second Quarter

Fiscal Year 2021 Financial Results

 

   

Second Quarter Subscription Revenue up 32% Year-Over-Year

 

   

Remaining Performance Obligation of $703.1 million, up 36% Year-Over-Year

 

   

Dollar-Based Net Expansion of 116%

SAN FRANCISCO, August 26, 2020 — Anaplan, Inc. (NYSE:PLAN), a pioneer in Connected Planning, today announced financial results for its second quarter ended July 31, 2020.

“Businesses need an agile digital connected planning platform in today’s challenging environment. We are at the forefront of offering real-time, valuable business performance insights, providing a competitive advantage to our customers,” said Frank Calderoni, chief executive officer at Anaplan. “I’m pleased with our progress this quarter, and we are confident in the long-term market opportunity for Connected Planning.”

Second Quarter Fiscal 2021 Financial Results

 

   

Total revenue was $106.5 million, an increase of 26% year-over-year. Subscription revenue was $97.1 million, an increase of 32% year-over-year.

 

   

GAAP operating loss was $37.7 million or 35.4% of total revenue, compared to $41.2 million in the second quarter of fiscal 2020 or 48.7% of total revenue. Non-GAAP operating loss was $9.6 million, or 9.0% of total revenue, compared to $16.6 million in the second quarter of fiscal 2020, or 19.7% of total revenue.

 

   

GAAP loss per share was $0.26, compared to $0.31 in the second quarter of fiscal 2020. Non-GAAP loss per share was $0.04, compared to $0.12 in the second quarter of fiscal 2020.

 

   

Cash and Cash Equivalents were $304.9 million as of July 31, 2020.

Financial Outlook

The company is providing the following guidance for its third quarter fiscal 2021:

 

   

Total revenue is expected to be between $109 and $110 million.

 

   

Non-GAAP operating margin is expected to be between negative 12.5% and 13.5%.

 

   

As a baseline for third quarter, we expect billings to be in the range of $133 million to $135 million.

The company is providing the following guidance for its full year fiscal 2021:

 

   

Total revenue is expected to be between $437 and $439 million.

 

   

Non-GAAP operating margin is expected to be between negative 11% and 12%.

 

1


The guidance provided above are forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures used in this press release, definitions of our operating metrics and a reconciliation of GAAP and non-GAAP financial measures is contained in the tables below. A reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, costs and expenses, including the impact of stock-based compensation, which is dependent on factors such as future stock price and volume of equity awards granted in the future, that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant.

Recent Highlights

 

   

Anaplan was showcased in IDC’s study highlighting the market shares of the largest vendors in the worldwide Big Data and analytics software market for 2019.

 

   

Anaplan was named one of Supply Chain Brain’s 100 Great Supply Chain Partners of 2020.

 

   

Anaplan produced a report with Harvard Business Review Analytic Services on the importance of systematically orchestrating business performance to drive agility and resilience.

Webcast and Conference Call Information

Event: Anaplan Second Quarter Fiscal Year 2021 (Q2 FY21) Earnings Conference Call

When: Wednesday, August 26, 2020

Time: 5:30 a.m. PT / 8:30 a.m. ET

Live Call: Please see online registration

Replay: (855) 859-2056 or (404) 537-3406 with passcode 7758307

Live Webcast: https://investors.anaplan.com or with replay available for 12 months

About Anaplan

Anaplan, Inc. (NYSE: PLAN) is a cloud-native enterprise SaaS company helping global enterprises orchestrate business performance. Leaders across industries rely on our platform—powered by our proprietary Hyperblock® technology—to connect teams, systems, and insights from across their organizations to continuously adapt to change, transform how they operate, and reinvent value creation. Based in San Francisco, Anaplan has over 20 offices globally, 175 partners and approximately 1,500 customers worldwide. To learn more, visit anaplan.com.

Forward-Looking Statements

This press release contains 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, each as amended, including all statements other than statements of historical fact contained in this press release and includes, without limitation, statements about the company’s expectations regarding the impact of the

 

2


COVID-19 pandemic and resulting global economic uncertainty, the quotations from management, statements regarding market demand, market opportunity, competitive position including of the company’s solutions compared to the offerings of competitors, use of the company’s solutions and potential results of such use, financial outlook and guidance which may include expected GAAP and non-GAAP financial and other results, statements regarding growth and momentum, statements about the company’s plans, strategies and prospects, and statements about events and trends including events and trends that we believe may affect our financial condition, results of operations, short- and long-term business operations and objectives, and financial needs. These statements identify prospective information and may include words such as “expects,” “intends,” “continue,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “should,” “may,” “will,” or the negative version of these words, variations of these words and comparable terminology. These forward-looking statements are based on information available to the company as of the date of this press release and are based on management’s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be beyond the company’s control and may pose a risk to the company’s operating and financial condition. Such risks and uncertainties include, but are not limited to: the ongoing COVID-19 pandemic, and resulting global economic downturn, has materially impacted how we, our customers, and our partners are operating, and could result in a material adverse effect on our business, financial condition, operating results and cash flows; we have a limited history of operating at our current scale and under our current strategy, which makes it difficult to predict our future operating results, and we may not achieve our expected operating results in the future; we have a history of net losses, we anticipate increasing our operating expenses in the future, and we do not expect to be profitable for the foreseeable future; our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business; economic uncertainty and volatility in the broader financial markets may result in our customers and prospective customers reducing their spending, scaling back their digital transformation efforts, delaying purchasing decisions or deferring implementation projects, any of which may adversely impact our business, financial condition and cash flows; if we are unable to achieve and sustain a level of liquidity sufficient to support our operations and fulfill our obligations, our business, operating results and financial position could be adversely affected; if we are unable to attract new customers, both domestically and internationally, the growth of our revenue will be adversely affected and our business may be harmed; our business depends substantially on our customers renewing their subscriptions and expanding their use of our platform and if we fail to achieve renewals and expansions or our customers renew or expand their subscriptions on less favorable terms, our business operations and financial condition may be materially and adversely affected; the markets in which we participate are intensely competitive, and if we do not compete effectively, our business and operating results could be adversely affected; our success depends in part on the continued performance of our strategic partners, and uncertain economic conditions including those caused by the COVID-19 pandemic may disrupt the operations and performance of our partners and ultimately adversely impact our financial results; if we experience a security incident, our platform may be perceived as not being secure, our reputation may be harmed, customers may reduce the use of or stop using our platform, we may incur significant liabilities, and our business could be materially adversely affected; real or perceived errors, failures, bugs, service outages, or disruptions in our platform could adversely affect our reputation and harm our business; our success depends upon training our customers to effectively utilize our platform and providing high-quality support services and if our ability to provide effective training or support is limited by the COVID-19 pandemic and ensuing remote work restrictions, then our results of operations and financial condition may be adversely affected; we could incur substantial costs in protecting or

 

3


defending our intellectual property rights, and any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand; our global operations and sales to customers outside the United States or with international operations subject us to risks inherent in international operations that can harm our business, results of operations, and financial condition; and the uncertainty in and volatility of the broader stock market generally or the stock price of our common stock specifically may result in stockholders not being able to resell their shares at or above the price at which they purchased shares. Furthermore, the additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may amplify many of these risks. Information concerning risks, uncertainties and other factors that could cause results to differ materially from the expectations described in this press release is contained in the company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its quarterly report on Form 10-Q filed with the SEC on June 4, 2020, and other documents the company may file with or furnish to the SEC from time to time such as annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. These forward-looking statements should not be relied upon as representing the company’s views as of any subsequent date and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made. The information contained in, or that can be accessed through, Anaplan’s website and social media channels are not part of this press release.

Investor Contact:

Edelita Tichepco

investors@anaplan.com

Media Contact:

Caitlin Tridle

press@anaplan.com

 

4


Preliminary Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended July 31,     Six Months Ended July 31,  
(In thousands, except per share amounts)    2020     2019     2020     2019  

Revenue:

        

Subscription revenue

   $ 97,117     $ 73,598     $  190,941     $  138,683  

Professional services revenue

     9,394       10,942       19,414       21,687  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     106,511       84,540       210,355       160,370  

Cost of revenue:

        

Cost of subscription revenue (1)

     16,148       12,207       31,333       23,298  

Cost of professional services revenue (1)

     9,294       10,300       18,849       20,786  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     25,442       22,507       50,182       44,084  

Gross profit

     81,069       62,033       160,173       116,286  

Operating expenses:

        

Research and development (1)

     24,595       16,442       48,357       31,501  

Sales and marketing (1)

     72,914       63,997       144,588       120,287  

General and administrative (1)

     21,235       22,801       43,663       42,814  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     118,744       103,240       236,608       194,602  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (37,675     (41,207     (76,435     (78,316

Interest income (expense), net

     (184     1,339       327       2,590  

Other income (expense), net

     4,007       548       3,676       302  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (33,852     (39,320     (72,432     (75,424

Provision for income taxes

     (1,672     (1,322     (2,694     (2,409
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $  (35,524   $  (40,642   $  (75,126   $  (77,833
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share attributable to common stockholders, basic and diluted

   $ (0.26   $ (0.31   $ (0.55   $ (0.62
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

     138,335       129,549       137,359       126,277  
  

 

 

   

 

 

   

 

 

   

 

 

 

(1) Includes stock-based compensation expense as follows:

        

Cost of subscription revenue

   $ 876     $ 637     $ 1,584     $ 1,128  

Cost of professional services revenue

     692       546       1,200       1,038  

Research and development

     4,380       2,494       8,026       4,330  

Sales and marketing

     11,213       8,184       21,244       14,801  

General and administrative

     7,818       8,258       15,418       15,124  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation expense

   $ 24,979     $ 20,119     $ 47,472     $ 36,421  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

5


Preliminary Consolidated Balance Sheets          

(In thousands)          

(Unaudited)          

 

     As of  
     July 31,     January 31,  
     2020     2020  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 304,894     $ 309,894  

Accounts receivable, net

     88,269       109,217  

Deferred commissions, current portion

     30,546       25,990  

Prepaid expenses and other current assets

     16,639       17,814  
  

 

 

   

 

 

 

Total current assets

     440,348       462,915  

Property and equipment, net

     53,171       48,639  

Deferred commissions, net of current portion

     68,372       57,947  

Goodwill

     32,379       32,379  

Operating lease right-of-use asset

     33,590       37,875  

Other noncurrent assets

     13,031       10,052  
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 640,891     $ 649,807  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 5,832     $ 5,331  

Accrued expenses

     80,735       79,024  

Deferred revenue, current portion

     209,373       216,059  

Operating lease liabilities, current portion

     6,510       7,278  
  

 

 

   

 

 

 

Total current liabilities

     302,450       307,692  

Deferred revenue, net of current portion

     5,181       4,149  

Operating lease liabilities, net of current portion

     31,039       34,017  

Other noncurrent liabilities

     20,077       12,268  
  

 

 

   

 

 

 

TOTAL LIABILITIES

     358,747       358,126  
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock

     14       13  

Accumulated other comprehensive loss

     (5,862     (4,326

Additional paid-in capital

     856,129       788,447  

Accumulated deficit

     (568,137     (492,453
  

 

 

   

 

 

 

TOTAL STOCKHOLDERS’ EQUITY

     282,144       291,681  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 640,891     $ 649,807  
  

 

 

   

 

 

 

 

6


Preliminary Consolidated Statements of Cash Flows          

(In thousands)          

(Unaudited)          

 

     Six Months Ended July 31,  
     2020     2019  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net loss

   $  (75,126   $  (77,833

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     12,263       9,073  

Amortization of deferred commissions

     16,184       8,761  

Stock-based compensation

     47,472       36,421  

Reduction of operating lease right-of-use assets and accretion of operating lease liabilities

     5,544       4,987  

Foreign currency remeasurement gains

     (3,247     (653

Other non-cash items

     950       357  

Changes in operating assets and liabilities:

    

Accounts receivable

     17,927       10,637  

Prepaid expenses and other current assets

     1,317       (4,093

Other noncurrent assets

     (1,493     (266

Deferred commissions

     (29,947     (21,587

Accounts payable and accrued expenses

     2,459       23,364  

Deferred revenue

     (4,367     20,529  

Payments for operating lease liabilities, net

     (4,938     (4,790

Other noncurrent liabilities

     6,546       (1,712
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (8,456     3,195  

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchase of property and equipment

     (4,996     (1,603

Capitalized internal-use software

     (5,380     (5,051
  

 

 

   

 

 

 

Net cash used in investing activities

     (10,376     (6,654

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     8,624       14,739  

Proceeds from repayment of promissory notes

     —         12,148  

Proceeds from employee stock purchase plan

     9,481       9,088  

Principal payments on capital lease obligations

     (3,671     (2,382
  

 

 

   

 

 

 

Net cash provided by financing activities

     14,434       33,593  

Effect of exchange rate changes on cash and cash equivalents

     1,548       (1,042
  

 

 

   

 

 

 

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

     (2,850     29,092  

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH - Beginning of period

     309,894       326,863  
  

 

 

   

 

 

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH - End of period

   $  307,044     $  355,955  
  

 

 

   

 

 

 

 

7


Reconciliation of GAAP to Non-GAAP Financial Measures                      

(In thousands, except percentages and per share amounts)                      

(Unaudited)                      

 

     Three Months Ended July 31,     Six Months Ended July 31,  
(In thousands, except percentages and per share amounts)    2020     2019     2020     2019  

Revenue

   $  106,511     $ 84,540     $  210,355     $  160,370  

GAAP operating loss

   $  (37,675   $  (41,207   $  (76,435   $  (78,316

Stock-based compensation

     24,979       20,119       47,472       36,421  

Employer payroll tax expense related to employee stock plans

     1,875       4,447       3,360       5,129  

Business combination and other related cost

     936       —         1,955       —    

Amortization of acquired intangibles

     335       —         670       35  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss

   $ (9,550   $  (16,641   $  (22,978   $  (36,731
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP operating margin %

     -35.4     -48.7     -36.3     -48.8

Stock-based compensation %

     23.4     23.8     22.6     22.7

Employer payroll tax expense related to employee stock plans %

     1.8     5.2     1.6     3.2

Business combination and other related cost %

     0.9     0.0     0.9     0.0

Amortization of acquired intangibles %

     0.3     0.0     0.3     0.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating margin %

     -9.0     -19.7     -10.9     -22.9
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net loss

   $  (35,524   $  (40,642   $  (75,126   $  (77,833

Stock-based compensation

     24,979       20,119       47,472       36,421  

Employer payroll tax expense related to employee stock plans

     1,875       4,447       3,360       5,129  

Business combination and other related cost

     936       —         1,955       —    

Amortization of acquired intangibles

     335       —         670       35  

Non-GAAP tax adjustments

     1,250       —         1,250       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (6,149   $  (16,076   $  (20,419   $  (36,248
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net loss per share, basic and diluted

   $ (0.26)     $ (0.31)     $ (0.55)     $ (0.62)  

Stock-based compensation

     0.18       0.16       0.35       0.29  

Employer payroll tax expense related to employee stock plans

     0.02       0.03       0.02       0.04  

Business combination and other related cost

     0.01       —         0.02       —    

Amortization of acquired intangibles

     —         —         —         —    

Non-GAAP tax adjustments

     0.01       —         0.01       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss per share

   $ (0.04   $ (0.12)     $ (0.15   $ (0.29
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

     138,335       129,549       137,359       126,277  
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used to compute Non-GAAP net loss per share

     138,335       129,549       137,359       126,277  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net cash provided by (used in) operating activities

   $ (6,952   $ 5,095     $ (8,456   $ 3,195  

Purchase of property and equipment

     (3,413     (681     (4,996     (1,603

Capitalized internal-use software

     (2,500     (2,890     (5,380     (5,051
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP free cash flow

   $  (12,865   $ 1,524     $  (18,832   $ (3,459
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and free cash flow. The non-GAAP financial information is presented for supplemental informational purposes only, and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. The non-GAAP measures presented here may be different from similarly-titled non-GAAP measures used by other companies.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures, when viewed collectively with the GAAP measures, may be helpful to investors because they provide consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. The definitions of our non-GAAP measures may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may utilize metrics that are not similar to ours. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. Please see the reconciliation tables in this release for the reconciliation of GAAP and non-GAAP results.

 

8


We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.

Employer payroll tax expense related to employee stock plans. We exclude employer payroll tax expense related to employee stock plans, which is a cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of exercise or vesting, which may vary from period to period independent of the operating performance of our business.

Amortization of acquired intangible assets. We exclude amortization of acquired intangible assets, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of intangible assets are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

Business combinations and related cost. We exclude transaction, integration, and retention expenses that are directly related to business combinations from certain of our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information regarding operational performance.

Non-GAAP tax adjustments. We exclude discrete tax expenses associated with non-recurring intercompany transactions because we believe that excluding these items facilitate a comparison of the non-GAAP tax provision in the current and prior periods.

Free cash flow. Our management reviews cash flows generated from operations after taking into consideration capital expenditures such as purchase of property and equipment and internal-use software as these expenditures are considered to be a necessary component of ongoing operations. We define non-GAAP free cash flow as net cash provided by (used in) operating activities, reduced by purchase of property and equipment and capitalization of internal-use software.

Operating Metrics

Annual recurring revenue (ARR) is calculated as subscription revenue already booked and in backlog that will be recorded over the next 12 months, assuming any contract expiring in those 12 months is renewed and continues on its existing terms and at its prevailing rate of utilization.

Dollar-based Net Expansion Rate is calculated as the ARR at the end of a period for the base set of customers from which we had ARR in the year prior to the calculation, divided by the ARR one year prior to the date of calculation for that same customer base.

 

9

v3.20.2
Document and Entity Information
Aug. 26, 2020
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001540755
Document Type 8-K
Document Period End Date Aug. 26, 2020
Entity Registrant Name ANAPLAN, INC.
Entity Incorporation State Country Code DE
Entity File Number 001-38698
Entity Tax Identification Number 27-0897861
Entity Address, Address Line One 50 Hawthorne Street
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94105
City Area Code (415)
Local Phone Number 742-8199
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock, $0.0001 par value per share
Trading Symbol PLAN
Security Exchange Name NYSE
Entity Emerging Growth Company false