Home » Computer & Software » Internet » iPass Reports Fourth Quarter and Year End 2016 Financial Results
Ihren XING-Kontakten zeigen

iPass Reports Fourth Quarter and Year End 2016 Financial Results

REDWOOD SHORES, CA — (Marketwired) — 02/09/17 — iPass Inc. (NASDAQ: IPAS), a , reported total revenue of $16.1 million, GAAP net loss of $1.3 million, and Adjusted EBITDA loss of $0.5 million for the quarter ended December 31, 2016, and total revenue of $63.2 million, GAAP net loss of $7.8 million, and Adjusted EBITDA loss of $3.2 million for the year ended December 31, 2016.

“Two years ago, iPass was essentially a reseller of Wi-Fi. Today, we have made our mark as a software company. iPass is solving the exploding demand for mobile data with our intelligent connection management,” said Gary Griffiths, president and CEO. “We live in a world that always needs to be connected, yet no single network — 3/4G, LTE, Wi-Fi — is ubiquitous. Intelligent connection management is the Holy Grail in a connected world, and iPass has climbed to the top in this important technology. Since launching iPass Unlimited a year ago, our message is as simple as ABC: –Always Be Connected.– Through a combination of Unlimited Wi-Fi, product development, network expansion and strategic partnerships, our customers consumed 39% more Wi-Fi hours in 2016 over the previous year. And that usage continues to grow, as evident in December 2016, with throughput 73% greater than the same period in 2015. The message resonates with our customers, whether it translates into higher productivity, the peace of knowing their data and personal information are secure, or greater cost predictability. That message has helped us drive Annual Contract Value on an impressive growth trajectory. Growing topline revenue has and will continue to be our singular focus. In 2016, we achieved annual revenue growth year over year for the first time in nearly a decade, and we have high expectations for 2017.”

, defined as the annualized sales value under committed contract for newly acquired or significant upsell customers, signed in Q4–16 totaled $4.8 million, an improvement of nearly 7x from $0.7 million in Q4–15. For the year 2016, ACV was $12.8 million compared to $3.9 million in 2015.

, defined as the annualized impact on revenue, based on the prior quarter run-rate, of any customer that terminates or has write-down of committed contract value, was $4.3 million in Q4–16 compared to $1.8 million in Q4–15. Included in the $4.3 million was $1.7 million related to one strategic partner customer that opted to buy out its monthly minimum commit for 2017. The negotiated buyout is included in Q4–16 revenue. For the year 2016, customer churn was $9.1 million compared to $12.2 million in 2015.

continues to support the UNLIMITED strategy. A 39% growth in hours consumed by customers in 2016 translated to an increase in NAC of only 16%. On a cost per hour basis, NAC was reduced from $4.80 in 2015 to $4.02 in 2016, a 16% reduction as efforts to commoditize the Wi-Fi component of the iPass service continue.

The announced in early 2016, was in the hands of 28 partners at December 31, 2016, up from 24 last quarter. Of the 28 partners, 18 have signed ACV or non-commit revenue generation contracts as of year-end.

“We enter 2017 with more clarity in our business than at any time in the last two years. We have a strong backlog of committed revenue deals signed in 2016, a growing pipeline of blue-chip strategic partners, and an increasingly sticky customer install base that is consuming more and more network usage. With new deals closed by Tata, and new strategic partners starting to deploy, our vision to put the iPass technology on 1 billion devices is being realized, enabled through wise investment decisions to lock up additional network capacity and drive the cost of data connectivity continually down. We expect to spend more on Network Access Costs in 2017. Although the investment will keep our bottom line from improving at the same trajectory as our top line, it will fortify the competitive advantage we have developed in our network, which is critical to the overall success of the company. Similar to 2016, we expect some revenue softness in the first quarter, but project a clear line of sight to double-digit revenue growth starting in the second quarter.”

For Q1–17 ending March 31, 2017, iPass anticipates the following:

For the year ending December 31, 2017, iPass anticipates the following:

iPass tracks key metrics to evaluate operating performance. Wi-Fi Network Users (Enterprise and Strategic Partnerships) is the number of iPass platform users each month in a given quarter that used Wi-Fi network services from iPass. Active Platform Users is the number of users who were billed platform fees and who have used or deployed the platform during the period. This metric excludes UNLIMITED subscribers unless they have actively accessed network during the period. Hours Consumed represent the number of network hours consumed by our customers each month in a given quarter. ACV represents the annualized sales value committed under contract for newly acquired customers or significant upsell, in total across Enterprise and Strategic Partnerships.

iPass will host a live conference call today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). To join the call, please dial-in 10 minutes in advance: toll-free at 1-877-681-3367 or direct at 1-719-325-4865 with a participant confirmation code of 2266606. The conference call will also be available live via webcast on the company–s web site at . The webcast replay will be available until iPass reports its first quarter 2017 results.

The telephone replay dial-in numbers are 1-866-375-1919 and 1-719-457-0820 and will be available until February 18, 2017, 5:00 p.m. Pacific time. The confirmation code for the replay is 2266606.

The statements in this press release: that usage continues to grow; that the growing topline revenue will continue to be a singular focus; that the company has high expectations for 2017; and all statements under “Financial Outlook” including that the company expects to spend more on Network Access Costs in 2017, that the company will fortify the competitive advantage it has developed in its network, that similar to 2016, the company expects some revenue softness in the first quarter, but projects a clear line of sight to double-digit revenue growth starting in the second quarter– and statements relating to iPass– projections of the year ending December 31, 2017, under the caption “Financial Guidance for the year ending December 31, 2017,” are forward-looking statements. Actual results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties, including the following: the risk that consumers and customers will not perceive the benefits of the iPass UNLIMITED, iPass EVERYWHERE and iPass INVISIBLE initiatives to be as iPass expects; the risk that iPass will not be able to achieve the cost savings that iPass currently expects; the risk that the “End of Life” of iPass– legacy Mobile Office product may negatively impact customer retention and mobility revenues more than iPass expects; the risk that the iPass solution will not continue to achieve the market acceptance iPass expects; the risk of material reductions in iPass customers– existing minimum commitments more than iPass currently expects; the risk that iPass does not accurately predict usage for its Enterprise flat rate price plans which could result in iPass expenses exceeding revenues for these plans; the risk that iPass customers do not widely deploy iPass Open Mobile on smartphones, tablets and other mobile handheld devices at the rate iPass expects; the risk that demand for Mobility Services does not grow as iPass expects; the risk that strong competition in the market for Mobility Services could reduce demand for iPass– services; and the risk that a meaningful portion of iPass business is international, which subjects iPass to additional risks such as currency fluctuations. Detailed information about these and other risk factors that could potentially affect iPass– business, financial condition and results of operations are included in iPass– Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2016, and available at its Web site at and the company–s website at . iPass undertakes no responsibility to update the information in this press release if any forward-looking statement later turns out to be an inaccurate prediction of the actual results.

In addition, investors and others should note that iPass announces material financial information to its investors using its investor relations website, SEC filings, press releases, public conference calls and webcasts. iPass also uses social media to communicate with its customers and the public about iPass, its products and services and other matters relating to its business and market. It is possible that the information iPass posts on social media could be deemed to be material information. Therefore, iPass encourages investors, the media, and others interested in iPass to review the information it posts on U.S. social media channels including the iPass Twitter Feed, the iPass LinkedIn Feed, the iPass Google+ Feed, the iPass Facebook Page, the iPass Blog, and the iPass Instagram account. These social media channels may be updated from time to time.

This press release also contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). iPass considers Adjusted EBITDA as a supplemental measure of the company–s performance that is not required by, nor presented in accordance with GAAP.

The company defines Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation and amortization, stock-based compensation, restructuring charges, CEO exit costs, proxy contest costs and non-recurring legal costs. The company believes Adjusted EBITDA provides a meaningful comparison between its core operating results, on a consistent basis, over different periods of time. Accordingly, management uses this financial measure for evaluating and making operating decisions and for purposes of comparison with its strategic plan, operating budgets and allocation of resources.

Furthermore, iPass believes the use of Adjusted EBITDA is useful to investors:
1. To provide an additional analytical tool for understanding the company–s financial performance by excluding the impact of items which may obscure trends in the core operating performance of the business;
2. To provide consistency and enhance investors– ability to compare the company–s performance across financial reporting periods; and
3. To facilitate comparisons to the operating results of other companies in the company–s industry, which may use similar financial measures to supplement their GAAP results.

Adjusted EBITDA should not be considered in isolation, or construed as an alternative to net income, or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company–s liquidity. In addition, other companies may calculate Adjusted EBITDA differently than iPass does, which would limit its usefulness in comparing iPass– financial results with those of such other companies.

The company defines a key operating metric, ACV, as the annualized sales value committed under contract for newly acquired customers or significant upsell, in total across the Enterprise and Strategic Partnership go-to-market strategies, in the period. Because ACV is not an alternative measure for GAAP revenue, but only an operational metric to provide insight on the health and progress of the sales pipeline and revised go-to-market strategy, the signing of committed contract value should not be assumed to have met the entire revenue recognition criteria. For example, while persuasive evidence of an arrangement always exist before reporting ACV, service may not yet have been provided to the customer or collections may not yet be determined to be reasonably assured. The company makes reasonable efforts to substantiate the viability of all reported ACV, but future events could change that conclusion. As an example, when a previously reported ACV customer fails to perform under the committed contract, such remaining calculated ACV will be reversed in the current period reported ACV.

iPass (NASDAQ: IPAS) is a leading provider of global mobile connectivity, offering simple, secure, always-on Wi-Fi access on any mobile device. Built on a software-as-a-service (SaaS) platform, the iPass cloud-based service keeps its customers connected by providing unlimited Wi-Fi connectivity on unlimited devices. iPass is the world–s largest Wi-Fi network, with more than 60 million hotspots in more than 120 countries, at airports, hotels, train stations, convention centers, outdoor venues, inflight, and more. Using patented technology, the iPass SmartConnect platform takes the guesswork out of Wi-Fi, automatically connecting customers to the best hotspot for their needs. Customers simply download the iPass app to experience unlimited, everywhere, and invisible Wi-Fi.

iPassĀ® is a registered trademark of iPass Inc. Wi-FiĀ® is a registered trademark of the Wi-Fi Alliance. All other trademarks are owned by their respective owners.

Kirsten Chapman / Becky Herrick
LHA Investor Relations
415-433-3777

You must be logged in to post a comment Login


Blogverzeichnis - Blog Verzeichnis bloggerei.de Blog Top Liste - by TopBlogs.de Bloggeramt.de blogoscoop