Active Network announced its financial results for the first quarter of 2012.
Q1 2012 Financial Highlights:
(All comparisons are made to the first quarter of 2011)
-- Total net revenue was $94.4 million, up 30% from $72.7 million.
-- Technology revenue constituted 89%, or $84.1 million of total net revenue, up 33% from $63.1 million.
-- Marketing Services revenue constituted 11%, or $10.3 million of total net revenue.
-- Loss from operations was $21.0 million compared to a loss of $8.8 million.
-- Net loss was $20.3 million compared to a net loss of $10.9 million.
-- Adjusted EBITDA, a non-GAAP financial measure, was negative $3.0 million. Excluding the impact of business combination accounting rules related to deferred revenue, Adjusted EBITDA was $1.6 million.
"Our first quarter was a fantastic start to 2012, with record revenue up 30% over the prior year period, as we continued to execute on our strategy to expand our customer base, drive innovation in our ActiveWorks technology platform and penetrate new markets," said Dave Alberga, CEO of Active Network. "StarCite is proving to complement our existing event technology and has helped attract new customers and strengthen our position as the leading SaaS technology provider for professional events. During the quarter, we orchestrated a record-breaking Marine Corps Marathon rush event which processed over 30,000 registrations -- demonstrating the strength and deep functionality of the ActiveWorks platform. We also renewed numerous strategic partnerships including Cisco GSX and Schwab, and added new customers including the State of New Jersey Department of Environment Protection, City of Bellingham, WA, City of Wassau, WI and the Harlem Globetrotters - emphasizing the diversity of our solutions and expansion into adjacent markets."
"We delivered a strong quarter -- exceeding both our top and bottom line expectations," explained Scott Mendel, CFO of Active Network. "As a result of our SaaS model and long-term exclusive customer contracts we have recurring revenue with a high degree of predictability. In the first quarter, registrations, one of our key drivers, accelerated over 23% from the prior year period, reflecting the strength across all verticals, including strong performance by our hunting and fishing customers."
Q1 2012 Key Business Highlights
-- The Company partnered with the City of San Diego to manage its parks and recreation assets and to handle everything from facility reservations, park permitting, payment processing and e-commerce operations making it easier for San Diegans to get active in their community.
-- The Company worked with the North Carolina Division of Parks and Recreation to help them successfully launch their online camping reservations system. This online reservation system will allow customers to view photos of parks and sites, check availability, and make reservations at more than 3,000 sites in 29 North Carolina State Parks.
-- Kevin Biggs was appointed as Executive Vice President of Global Technology Sales to lead the sales organization spanning across North America, Europe and Asia-Pacific.
For the second quarter of 2012, Active Network is targeting total revenue to be in the range of $117 million to $121 million. Registrations are expected to grow approximately 11% to 13% and revenue per registration growth of approximately 3% to 5% compared to the same period in the prior year. The Company expects Adjusted EBITDA in the range of $19 million to $21 million. Excluding the impact of business combination accounting rules, Adjusted EBITDA is expected to be in the range of $23 million to $25 million. The Company expects a net (loss)/income of $(3) million to $1 million.
The Company reiterates full year 2012 guidance of total revenue in the range of $425 million to $435 million and Adjusted EBITDA in the range of $46 million to $50 million. Excluding the impact of business combination accounting rules, Adjusted EBITDA is expected to be in the range of $58.5 million to $62.5 million. The Company now expects net loss in the range of $39 million to $30 million.