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    Model N Announces Third Quarter Fiscal Year 2023 Financial Results

    8/8/23 4:05:00 PM ET
    $MODN
    Computer Software: Programming Data Processing
    Technology
    Get the next $MODN alert in real time by email

    Total Revenue Grew 13% Year-over-Year

    SaaS ARR Grew 28% Year-over-Year

    Model N, Inc. (NYSE:MODN), the leader in cloud revenue management solutions, today announced financial results for the third quarter of fiscal year 2023 ended June 30, 2023.

    "Our third quarter results beat expectations across the board – we exceeded guidance for total revenue, subscription revenue, and professional services revenue. Overall, Q3 was another strong quarter and underscores our commitment to driving profitable growth," said Jason Blessing, president and chief executive officer of Model N. "A key highlight during the quarter was our 19th annual customer conference, Rainmaker. Our customers, team members, and partners alike came out of Rainmaker very energized and excited for the future. We're seeing strong product pipeline, compelling customer engagement, and healthy customer satisfaction. I came away feeling good about how both our value proposition and customer-centric approach are resonating well across our customer base."

    Recent Company Highlights

    • Model N hosted Rainmaker23, the Company's annual customer conference in Nashville.
    • In June, Fortune Media and Great Place to Work® honored Model N as one of this year's Best Workplaces in the Bay Area.
    • In July, Fortune and Great Place to Work® honored Model N as one of this year's Best Workplaces for Millennials.
    • Model N released its Spring 2023 product release for life sciences and high-tech customers. This latest semi-annual release delivers new products and platform enhancements to help pharmaceutical, medical technology, and high-tech manufacturers further optimize revenue operations and strengthen compliance across the enterprise.

    Third Quarter 2023 Financial Highlights

    • Revenues: Total revenues were $63.7 million, an increase of 13% from the third quarter of fiscal year 2022. Subscription revenues were $45.8 million, an increase of 13% from the third quarter of fiscal year 2022.
    • Gross Profit: Gross profit was $36.5 million, an increase of 16% from the third quarter of fiscal year 2022. Gross margin was 57% for the third quarter of fiscal year 2023 compared to 56% for the third quarter of 2022. Non-GAAP gross profit was $39.2 million, an increase of 13% from the third quarter of fiscal year 2022. Non-GAAP gross margin was 61% for the third quarter of fiscal year 2023 compared to 62% for the third quarter of fiscal year 2022. Subscription gross margin was 65% compared to 63% for the third quarter of fiscal year 2022. Non-GAAP subscription gross margin was 69% compared to 68% for the third quarter of fiscal year 2022.
    • GAAP Income and Non-GAAP Income from Operations: GAAP income from operations was $2.9 million compared to loss from operations of $2.1 million for the third quarter of fiscal year 2022. Non-GAAP income from operations was $13.3 million, an increase of 35% from the third quarter of fiscal year 2022.
    • GAAP Net Income: GAAP net income was $2.8 million compared to a net loss of $6.2 million for the third quarter of fiscal year 2022. GAAP diluted net income per share attributable to common stockholders was $0.07 based upon diluted weighted average shares outstanding of 38.6 million compared to net loss per share of $0.17 for the third quarter of fiscal year 2022 based upon weighted average shares outstanding of 36.9 million.
    • Non-GAAP Net Income: Non-GAAP net income, was $13.6 million, an increase of 60% from the third quarter of fiscal year 2022. Non-GAAP net income per diluted share was $0.35 based upon diluted weighted average shares outstanding of 38.6 million compared to non-GAAP net income per diluted share of $0.23 for the third quarter of fiscal year 2022 based upon diluted weighted average shares outstanding of 37.1 million.
    • Adjusted EBITDA: Adjusted EBITDA was $13.5 million, an increase of 35% from the third quarter of fiscal year 2022. Adjusted EBITDA margin was 21% compared to 18% for the third quarter of fiscal year 2022.
    • SaaS ARR and SaaS Net Dollar Retention: SaaS ARR hit $129.2 million, representing growth of 28% year-over-year. Trailing 12-month SaaS net dollar retention increased to 126% from 123% year-over-year.

    A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial tables included in this press release.

    Guidance

    As of August 8, 2023, we are providing guidance for the fourth quarter and the full fiscal year ending September 30, 2023.

    (in $ millions, except per share)

    Fourth Quarter Fiscal 2023

    Full Year Fiscal 2023

    Total revenues

    61.6 - 62.6

    247.1 - 248.1

    Subscription revenues

    45.6 - 46.1

    180.5 - 181.0

    Non-GAAP income from operations

    10.8 - 11.8

    41.8 - 42.8

    Non-GAAP net income per share

    0.28 - 0.31

    1.08 - 1.10

    Adjusted EBITDA

    11.0 - 12.0

    42.9 - 43.9

    Quarterly Results Conference Call

    Model N will host a conference call today at 2:00 PM Pacific Time (5:00 PM Eastern Time) to review the company's financial results for the third quarter fiscal year 2023 ended June 30, 2023. The conference call can be accessed by dialing 877-407-4018 from the United States or +1-201-689-8471 internationally. A live webcast and replay of the conference call can be accessed from the investor relations page of Model N's website at investor.modeln.com. Following the completion of the call through 11:59 p.m. ET on August 22, 2023, a telephone replay will be available by dialing 844-512-2921 from the United States or +1-412-317-6671, internationally, with recording access code 13735136.

    About Model N

    Model N is the leader in revenue optimization and compliance for pharmaceutical, medtech, and high-tech innovators. Our intelligent platform powers your digital transformation with integrated technology, data, analytics, and expert services that deliver deep insight and control.

    Our integrated cloud solution is proven to automate pricing, incentive, and contract decisions to scale business profitably and grow revenue. Model N is trusted across more than 120 countries by the world's leading pharmaceutical, medical technology, semiconductor, and high-tech companies, including Johnson & Johnson, AstraZeneca, Stryker, Seagate Technology, Broadcom, and Microchip Technology. For more information, visit www.modeln.com.

    Forward-Looking Statements

    This press release contains forward-looking statements including, among other things, statements regarding Model N's fourth quarter and full year fiscal 2023 financial results, Model N's profitability, future planned enhancements to our products and benefits from our products. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) delays in closing customer contracts; (ii) our ability to improve and sustain our sales execution; (iii) the timing of new orders and the associated revenue recognition; (iv) adverse changes in general economic or market conditions; (v) delays or reductions in information technology spending and resulting variability in customer orders from quarter to quarter; (vi) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by our competitors; (vii) our ability to manage our growth effectively; (viii) acceptance of our applications and services by customers; (ix) success of new products; (x) the risk that the strategic initiatives that we may pursue will not result in significant future revenues; (xi) changes in health care regulation and policy and tax in the United States and worldwide; (xii) our ability to retain customers; and (xiii) adverse impacts on our business and financial condition due to macroeconomic and geopolitical factors, such as inflation, rising interests, pandemics, banking system instability and geopolitical conflicts. Further information on risks that could affect Model N's results is included in our filings with the Securities and Exchange Commission ("SEC"), including our most recent quarterly report on Form 10-Q and our annual report on Form 10-K for the fiscal year ended September 30, 2022, and any current reports on Form 8-K that we may file from time to time. Should any of these risks or uncertainties materialize, actual results could differ materially from expectations. Model N assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

    Non-GAAP Financial Measures

    We have provided in this release financial information that has not been prepared in accordance with accounting standards generally accepted in the United States of America ("GAAP"). We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures below. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

    Our reported results include certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP subscription gross profit, non-GAAP subscription gross margin, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share, adjusted EBITDA and free cash flow. Non-GAAP gross profit and subscription gross profit excludes stock-based compensation expenses and amortization of intangible assets as they are often excluded by other companies to help investors understand the operational performance of their business. Non-GAAP income from operations excludes stock-based compensation expense and amortization of intangible assets. Non-GAAP net income excludes stock-based compensation expense, amortization of intangible assets, amortization of debt discount and issuance costs, and loss on extinguishment of debt. Additionally, stock-based compensation expense varies from period to period and from company to company due to such things as valuation methodologies and changes in stock price. Adjusted EBITDA is defined as net income (loss), adjusted for depreciation and amortization, stock-based compensation expense, interest income (expense), net, other income (expenses), net, provision for income taxes, and loss on extinguishment of debt. Reconciliation tables are provided in this press release.

    SaaS ARR is defined as the annualized value of our SaaS revenue, which is derived by dividing the SaaS portion of our recurring subscription revenue for the quarter by the number of days in the quarter, and multiplying it by 365 to get an annualized number. SaaS Net Dollar Retention uses the same SaaS ARR calculations to measure the percentage change in SaaS ARR from customers that are in both the current period and the year-ago period. SaaS ARR that has been added from new customers that were not in the year-ago calculation is excluded from the SaaS Net Dollar Retention calculation. SaaS ARR and SaaS Net Dollar Retention should be viewed independently of revenue, deferred revenue, and remaining performance obligations, and are not intended to be a substitute for, or combined with, any of these items.

    Free cash flow is defined as net cash provided by operating activities less cash used for purchase of property plant and equipment.

    We have not reconciled guidance for non-GAAP financial measures to their most directly comparable GAAP measures because certain items that impact these measures are uncertain, out of our control and/or cannot be reasonably predicted or estimated, such as the difficulties of estimating certain items such as charges to stock-based compensation expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

    Model N, Inc.

    Condensed Consolidated Balance Sheets

    (in thousands)

     

     

    As of June 30, 2023

     

    As of September 30, 2022

    Assets

     

     

     

    Current assets

     

     

     

    Cash and cash equivalents

    $

    299,581

     

     

    $

    193,524

     

    Funds held for customers

     

    117

     

     

     

    603

     

    Accounts receivable, net

     

    51,866

     

     

     

    49,121

     

    Prepaid expenses

     

    4,181

     

     

     

    5,772

     

    Other current assets

     

    8,574

     

     

     

    12,516

     

    Total current assets

     

    364,319

     

     

     

    261,536

     

    Property and equipment, net

     

    1,260

     

     

     

    1,838

     

    Operating lease right-of-use assets

     

    11,030

     

     

     

    15,392

     

    Goodwill

     

    65,665

     

     

     

    65,665

     

    Intangible assets, net

     

    31,902

     

     

     

    37,362

     

    Other assets

     

    9,134

     

     

     

    10,454

     

    Total assets

    $

    483,310

     

     

    $

    392,247

     

    Liabilities and Stockholders' Equity

     

     

     

    Current liabilities

     

     

     

    Accounts payable

    $

    4,615

     

     

    $

    5,820

     

    Customer funds payable

     

    117

     

     

     

    603

     

    Accrued employee compensation

     

    13,205

     

     

     

    26,712

     

    Accrued liabilities

     

    5,966

     

     

     

    6,860

     

    Operating lease liabilities, current portion

     

    4,577

     

     

     

    4,651

     

    Deferred revenue, current portion

     

    59,825

     

     

     

    62,282

     

    Total current liabilities

     

    88,305

     

     

     

    106,928

     

    Long-term liabilities

     

     

     

    Long term debt

     

    279,895

     

     

     

    135,417

     

    Operating lease liabilities, less current portion

     

    7,786

     

     

     

    12,142

     

    Other long-term liabilities

     

    3,693

     

     

     

    3,139

     

    Total long-term liabilities

     

    291,374

     

     

     

    150,698

     

    Total liabilities

     

    379,679

     

     

     

    257,626

     

    Stockholders' equity

     

     

     

    Common stock

     

    6

     

     

     

    6

     

    Additional paid-in capital

     

    403,218

     

     

     

    421,473

     

    Accumulated other comprehensive loss

     

    (2,104

    )

     

     

    (2,413

    )

    Accumulated deficit

     

    (297,489

    )

     

     

    (284,445

    )

    Total stockholders' equity

     

    103,631

     

     

     

    134,621

     

    Total liabilities and stockholders' equity

    $

    483,310

     

     

    $

    392,247

     

     

     

     

     

    Model N, Inc.

    Condensed Consolidated Statements of Operations

    (in thousands, except per share amounts)

     

     

     

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    Revenues

     

     

     

     

     

     

     

    Subscription

    $

    45,789

     

     

    $

    40,554

     

     

    $

    134,928

     

     

    $

    116,885

     

    Professional services

     

    17,947

     

     

     

    15,618

     

     

     

    50,566

     

     

     

    44,109

     

    Total revenues

     

    63,736

     

     

     

    56,172

     

     

     

    185,494

     

     

     

    160,994

     

    Cost of revenues

     

     

     

     

     

     

     

    Subscription

     

    15,841

     

     

     

    14,869

     

     

     

    47,568

     

     

     

    43,249

     

    Professional services

     

    11,424

     

     

     

    9,938

     

     

     

    33,588

     

     

     

    28,260

     

    Total cost of revenues

     

    27,265

     

     

     

    24,807

     

     

     

    81,156

     

     

     

    71,509

     

    Gross profit

     

    36,471

     

     

     

    31,365

     

     

     

    104,338

     

     

     

    89,485

     

    Operating expenses

     

     

     

     

     

     

     

    Research and development

     

    11,361

     

     

     

    11,797

     

     

     

    36,528

     

     

     

    35,035

     

    Sales and marketing

     

    13,332

     

     

     

    11,795

     

     

     

    40,531

     

     

     

    34,873

     

    General and administrative

     

    8,849

     

     

     

    9,857

     

     

     

    31,021

     

     

     

    27,618

     

    Total operating expenses

     

    33,542

     

     

     

    33,449

     

     

     

    108,080

     

     

     

    97,526

     

    Income (loss) from operations

     

    2,929

     

     

     

    (2,084

    )

     

     

    (3,742

    )

     

     

    (8,041

    )

    Interest expense (income), net

     

    (731

    )

     

     

    3,794

     

     

     

    (878

    )

     

     

    11,420

     

    Loss on extinguishment of debt

     

    —

     

     

     

    —

     

     

     

    29,493

     

     

     

    —

     

    Other expenses (income), net

     

    102

     

     

     

    (271

    )

     

     

    120

     

     

     

    (283

    )

    Income (loss) before income taxes

     

    3,558

     

     

     

    (5,607

    )

     

     

    (32,477

    )

     

     

    (19,178

    )

    Provision for income taxes

     

    740

     

     

     

    611

     

     

     

    2,074

     

     

     

    1,345

     

    Net income (loss)

    $

    2,818

     

     

    $

    (6,218

    )

     

    $

    (34,551

    )

     

    $

    (20,523

    )

    Net income (loss) per share:

     

     

     

     

     

     

     

    Basic

    $

    0.07

     

     

    $

    (0.17

    )

     

    $

    (0.91

    )

     

    $

    (0.56

    )

    Diluted

    $

    0.07

     

     

    $

    (0.17

    )

     

    $

    (0.91

    )

     

    $

    (0.56

    )

    Weighted average number of shares used in computing net income (loss) per share:

     

     

     

     

     

     

     

    Basic

     

    38,278

     

     

     

    36,935

     

     

     

    37,906

     

     

     

    36,591

     

    Diluted

     

    38,610

     

     

     

    36,935

     

     

     

    37,906

     

     

     

    36,591

     

     

     

     

     

     

     

     

     

    Model N, Inc.

    Condensed Consolidated Statements of Cash Flows

    (in thousands)

     

     

     

    Nine Months Ended June 30,

     

     

    2023

     

     

     

    2022

     

    Cash Flows from Operating Activities:

     

     

     

    Net loss

    $

    (34,551

    )

     

    $

    (20,523

    )

    Adjustments to reconcile net loss to net cash provided by operating activities:

     

     

     

    Depreciation and amortization

     

    6,254

     

     

     

    6,725

     

    Stock-based compensation

     

    29,362

     

     

     

    25,186

     

    Amortization of debt discount and issuance costs

     

    1,047

     

     

     

    8,211

     

    Loss on extinguishment of debt

     

    29,493

     

     

     

    —

     

    Deferred income taxes

     

    20

     

     

     

    414

     

    Amortization of capitalized contract acquisition costs

     

    3,663

     

     

     

    3,152

     

    Other non-cash charges

     

    1,251

     

     

     

    (515

    )

    Changes in assets and liabilities, net of acquisition:

     

     

     

    Accounts receivable

     

    (3,960

    )

     

     

    4,908

     

    Prepaid expenses and other assets

     

    7,500

     

     

     

    (1,611

    )

    Accounts payable

     

    (1,211

    )

     

     

    (1,516

    )

    Accrued employee compensation

     

    (8,461

    )

     

     

    (794

    )

    Other current and long-term liabilities

     

    (4,192

    )

     

     

    (3,020

    )

    Deferred revenue

     

    (2,751

    )

     

     

    (3,284

    )

    Net cash provided by operating activities

     

    23,464

     

     

     

    17,333

     

    Cash Flows from Investing Activities:

     

     

     

    Purchases of property and equipment

     

    (237

    )

     

     

    (486

    )

    Net cash used in investing activities

     

    (237

    )

     

     

    (486

    )

    Cash Flows from Financing Activities:

     

     

     

    Proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan

     

    2,555

     

     

     

    2,507

     

    Proceeds from issuance of 2028 Notes

     

    253,000

     

     

     

    —

     

    Payment of debt issuance cost for 2028 Notes

     

    (7,525

    )

     

     

    —

     

    Repayments of 2025 Notes

     

    (165,210

    )

     

     

    —

     

    Net changes in customer funds payable

     

    (486

    )

     

     

    (142

    )

    Net cash provided by financing activities

     

    82,334

     

     

     

    2,365

     

    Effect of exchange rate changes on cash and cash equivalents

     

    10

     

     

     

    (335

    )

    Net increase in cash and cash equivalents

     

    105,571

     

     

     

    18,877

     

    Cash and cash equivalents

     

     

     

    Beginning of period

     

    194,127

     

     

     

    165,783

     

    End of period

    $

    299,698

     

     

    $

    184,660

     

     

     

     

     

    Model N, Inc.

    Reconciliation of GAAP to Non-GAAP Operating Results

    (in thousands, except per share amounts)

     

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    Reconciliation from GAAP net income (loss) to adjusted EBITDA

     

     

     

     

     

     

     

     

    GAAP net income (loss)

     

    $

    2,818

     

     

    $

    (6,218

    )

     

    $

    (34,551

    )

     

    $

    (20,523

    )

    Reversal of non-GAAP items

     

     

     

     

     

     

     

     

    Stock-based compensation expense

     

     

    8,596

     

     

     

    9,878

     

     

     

    29,362

     

     

     

    25,186

     

    Depreciation and amortization

     

     

    1,992

     

     

     

    2,246

     

     

     

    6,254

     

     

     

    6,725

     

    Interest (income) expense, net

     

     

    (731

    )

     

     

    3,794

     

     

     

    (878

    )

     

     

    11,420

     

    Loss on extinguishment of debt

     

     

    —

     

     

     

    —

     

     

     

    29,493

     

     

     

    —

     

    Other (income) expense, net

     

     

    102

     

     

     

    (271

    )

     

     

    120

     

     

     

    (283

    )

    Provision for income taxes

     

     

    740

     

     

     

    611

     

     

     

    2,074

     

     

     

    1,345

     

    Adjusted EBITDA

     

    $

    13,517

     

     

    $

    10,040

     

     

    $

    31,874

     

     

    $

    23,870

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    Reconciliation from GAAP gross profit to non-GAAP gross profit

     

     

     

     

     

     

     

     

    GAAP gross profit

     

    $

    36,471

     

     

    $

    31,365

     

     

    $

    104,338

     

     

    $

    89,485

     

    Reversal of non-GAAP expenses

     

     

     

     

     

     

     

     

    Stock-based compensation (a)

     

     

    2,285

     

     

     

    2,574

     

     

     

    7,132

     

     

     

    5,989

     

    Amortization of intangible assets (b)

     

     

    427

     

     

     

    709

     

     

     

    1,563

     

     

     

    2,127

     

    Non-GAAP gross profit

     

    $

    39,183

     

     

    $

    34,648

     

     

    $

    113,033

     

     

    $

    97,601

     

    Percentage of revenue

     

     

    61.5

    %

     

     

    61.7

    %

     

     

    60.9

    %

     

     

    60.6

    %

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    Reconciliation from GAAP subscription gross profit to non-GAAP subscription gross profit

     

     

     

     

     

     

     

     

    GAAP subscription gross profit

     

    $

    29,948

     

     

    $

    25,685

     

     

    $

    87,360

     

     

    $

    73,636

     

    Reversal of non-GAAP expenses

     

     

     

     

     

     

     

     

    Stock-based compensation (a)

     

     

    1,265

     

     

     

    1,380

     

     

     

    3,909

     

     

     

    3,303

     

    Amortization of intangible assets (b)

     

     

    427

     

     

     

    709

     

     

     

    1,563

     

     

     

    2,127

     

    Non-GAAP subscription gross profit

     

    $

    31,640

     

     

    $

    27,774

     

     

    $

    92,832

     

     

    $

    79,066

     

    Percentage of subscription revenue

     

     

    69.1

    %

     

     

    68.5

    %

     

     

    68.8

    %

     

     

    67.6

    %

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    Reconciliation from GAAP professional services gross profit to non-GAAP professional services gross profit

     

     

     

     

     

     

     

     

    GAAP professional services gross profit

     

    $

    6,523

     

     

    $

    5,680

     

     

    $

    16,978

     

     

    $

    15,849

     

    Reversal of non-GAAP expenses

     

     

     

     

     

     

     

     

    Stock-based compensation (a)

     

     

    1,020

     

     

     

    1,194

     

     

    $

    3,223

     

     

    $

    2,686

     

    Non-GAAP professional services gross profit

     

    $

    7,543

     

     

    $

    6,874

     

     

    $

    20,201

     

     

    $

    18,535

     

    Percentage of professional services revenue

     

     

    42.0

    %

     

     

    44.0

    %

     

     

    39.9

    %

     

     

    42.0

    %

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    Reconciliation from GAAP operating income (loss) to non-GAAP operating income

     

     

     

     

     

     

     

     

    GAAP operating income (loss)

     

    $

    2,929

     

    $

    (2,084

    )

     

    $

    (3,742

    )

     

    $

    (8,041

    )

    Reversal of non-GAAP expenses

     

     

     

     

     

     

     

     

    Stock-based compensation (a)

     

     

    8,596

     

     

    9,878

     

     

     

    29,362

     

     

     

    25,186

     

    Amortization of intangible assets (b)

     

     

    1,726

     

     

    2,008

     

     

     

    5,460

     

     

     

    6,024

     

    Non-GAAP operating income

     

    $

    13,251

     

    $

    9,802

     

     

    $

    31,080

     

     

    $

    23,169

     

     

     

     

     

     

     

     

     

     

    Numerator

     

     

     

     

     

     

     

     

    Reconciliation between GAAP net income (loss) and non-GAAP net income

     

     

     

     

     

     

     

     

    GAAP net income (loss)

     

    $

    2,818

     

    $

    (6,218

    )

     

    $

    (34,551

    )

     

    $

    (20,523

    )

    Reversal of non-GAAP expenses

     

     

     

     

     

     

     

     

    Stock-based compensation (a)

     

     

    8,596

     

     

    9,878

     

     

     

    29,362

     

     

     

    25,186

     

    Amortization of intangible assets (b)

     

     

    1,726

     

     

    2,008

     

     

     

    5,460

     

     

     

    6,024

     

    Loss on extinguishment of debt (c)

     

     

    —

     

     

    —

     

     

     

    29,493

     

     

     

    —

     

    Amortization of debt discount and issuance costs (d)

     

     

    418

     

     

    2,819

     

     

     

    1,047

     

     

     

    8,211

     

    Non-GAAP net income

     

    $

    13,558

     

    $

    8,487

     

     

    $

    30,811

     

     

    $

    18,898

     

     

     

     

     

     

     

     

     

     

    Denominator

     

     

     

     

     

     

     

     

    Reconciliation between GAAP net income (loss) and non-GAAP net income per share

     

     

     

     

     

     

     

     

    Shares used in computing GAAP net income (loss) per share:

     

     

     

     

     

     

     

     

    Basic

     

     

    38,278

     

     

    36,935

     

     

     

    37,906

     

     

     

    36,591

     

    Diluted

     

     

    38,610

     

     

    36,935

     

     

     

    37,906

     

     

     

    36,591

     

    Shares used in computing non-GAAP net income per share

     

     

     

     

     

     

     

     

    Basic

     

     

    38,278

     

     

    36,935

     

     

     

    37,906

     

     

     

    36,591

     

    Add: effect of shares for stock plan activity

     

     

    332

     

     

    172

     

     

     

    503

     

     

     

    240

     

    Add: effect of shares related to convertible senior notes

     

     

    —

     

     

    —

     

     

     

    324

     

     

     

    —

     

    Diluted

     

     

    38,610

     

     

    37,107

     

     

     

    38,733

     

     

     

    36,831

     

    GAAP net income (loss) per share

     

     

     

     

     

     

     

     

    Basic and diluted

     

    $

    0.07

     

    $

    (0.17

    )

     

    $

    (0.91

    )

     

    $

    (0.56

    )

    Non-GAAP net income per share

     

     

     

     

     

     

     

     

    Basic

     

    $

    0.35

     

    $

    0.23

     

     

    $

    0.81

     

     

    $

    0.52

     

    Diluted

     

    $

    0.35

     

    $

    0.23

     

     

    $

    0.80

     

     

    $

    0.51

     

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

     

    Amortization of intangibles assets recorded in the statements of operations

     

     

     

     

     

     

     

     

     

    Cost of revenues

     

     

     

     

     

     

     

     

     

    Subscription

     

    $

    427

     

    $

    709

     

    $

    1,563

     

    $

    2,127

     

    Total amortization of intangibles assets in cost of revenue (b)

     

     

    427

     

     

    709

     

     

    1,563

     

     

    2,127

     

    Operating expenses

     

     

     

     

     

     

     

     

     

    Sales and marketing

     

     

    1,299

     

     

    1,299

     

     

    3,897

     

     

    3,897

     

    Total amortization of intangibles assets in operating expense (b)

     

     

    1,299

     

     

    1,299

     

     

    3,897

     

     

    3,897

     

    Total amortization of intangibles assets (b)

     

    $

    1,726

     

    $

    2,008

     

    $

    5,460

     

    $

    6,024

     

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

    2022

     

     

    2023

     

     

    2022

    Stock-based compensation recorded in the statements of operations

     

     

     

     

     

     

     

     

    Cost of revenues

     

     

     

     

     

     

     

     

    Subscription

     

    $

    1,265

     

    $

    1,380

     

    $

    3,909

     

    $

    3,303

    Professional services

     

     

    1,020

     

     

    1,194

     

     

    3,223

     

     

    2,686

    Total stock-based compensation in cost of revenue (a)

     

     

    2,285

     

     

    2,574

     

     

    7,132

     

     

    5,989

    Operating expenses

     

     

     

     

     

     

     

     

    Research and development

     

     

    1,659

     

     

    1,826

     

     

    5,311

     

     

    4,616

    Sales and marketing

     

     

    2,172

     

     

    2,223

     

     

    7,121

     

     

    5,669

    General and administrative

     

     

    2,480

     

     

    3,255

     

     

    9,798

     

     

    8,912

    Total stock-based compensation in operating expense (a)

     

     

    6,311

     

     

    7,304

     

     

    22,230

     

     

    19,197

    Total stock-based compensation (a)

     

    $

    8,596

     

    $

    9,878

     

    $

    29,362

     

    $

    25,186

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended June 30,

     

    Nine Months Ended June 30,

     

     

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    Free cash flow

     

     

     

     

     

     

     

     

    Net cash provided by operating activities

     

    $

    29,614

     

     

    $

    14,405

     

     

    $

    23,464

     

     

    $

    17,333

     

    Purchases of property and equipment

     

     

    (131

    )

     

     

    (137

    )

     

     

    (237

    )

     

     

    (486

    )

    Free cash flow

     

    $

    29,483

     

     

    $

    14,268

     

     

    $

    23,227

     

     

    $

    16,847

     

    Use of Non-GAAP Financial Measures

    To supplement our condensed consolidated financial statements presented on a GAAP basis, we use non-GAAP measures of adjusted EBITDA, gross profit, gross margin, income from operations, net income, weighted average shares outstanding and net income per share, which are adjusted to exclude stock-based compensation expense, amortization of intangible assets, depreciation of fixed assets, amortization of debt discount and issuance costs, loss on extinguishment of debt and include dilutive shares where applicable. We believe these adjustments are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of our underlying operating results and trends and our marketplace performance. The non-GAAP results are an indication of our baseline performance that are considered by management for the purpose of making operational decisions. In addition, these non-GAAP results are the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for operating loss, net loss or basic and diluted net loss per share prepared in accordance with generally accepted accounting principles in the United States. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and are subject to limitations.

    While a large component of our expenses incurred in certain periods, we believe investors may want to exclude the effects of these items in order to compare our financial performance with that of other companies and between time periods:

    (a)

    Stock-based compensation is a non-cash expense accounted for in accordance with FASB ASC Topic 718. We believe that the exclusion of stock-based compensation expense provides for a better comparison of our operating results to prior periods and to our peer companies.

     

     

    (b)

    Amortization of intangible assets resulted principally from acquisitions. Intangible asset amortization is a non-cash item. As such, we believe exclusion of these expenses provides for a better comparison of our operating results to prior periods and to our peer companies.

     

     

    (c)

    The repurchase of our 2.625% convertible senior notes due 2025 was accounted for as a debt extinguishment. The Company recorded a $29.5 million loss on extinguishment of debt on its consolidated statements of operations during the fiscal quarter ended March 31, 2023 and the nine months ended June 30, 2023, which includes the write-off of related deferred issuance costs of $2.3 million. We believe exclusion of these expenses provides for a better comparison of our operating results to prior periods and to our peer companies.

     

     

    (d)

    Amortization of debt discount and issuance costs. Prior to the adoption of ASU 2020-06, Debt with Conversion and Other Options, on October 1, 2022 we were required to recognize non-cash interest expense related to amortization of debt discount and issuance costs. Subsequent to the adoption of ASU 2020-06, Debt with Conversion and Other Options, we only recognize non-cash interest expense related to amortization of issuance costs. We believe exclusion of these expenses provides for a better comparison of our operating results to prior periods and to our peer companies.

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20230808908843/en/

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    $MODN
    Computer Software: Programming Data Processing
    Technology

    Scott Reese Named CEO of GE Digital

    Today GE (NYSE:GE) announced the appointment of Scott Reese as Chief Executive Officer of GE Digital effective February 22, 2022. Reese succeeds Patrick Byrne who will continue at GE as Chief Executive Officer for the onshore wind business at GE Renewable Energy. Reese joins GE from Autodesk (NASDAQ:ADSK) where he is executive vice president, product development and manufacturing solutions. He joined Autodesk in 2003 with the acquisition of VIA Development Corporation and has spent nearly two decades leading product and go-to-market initiatives across a wide range of industries, while driving aggressive growth with next-generation solutions for manufacturing. Reese also established Autodes

    1/18/22 9:11:00 AM ET
    $ADSK
    $GE
    $MODN
    Computer Software: Prepackaged Software
    Technology
    Consumer Electronics/Appliances
    Computer Software: Programming Data Processing

    Sayari Labs Appoints Edward Sander as Chief Product Officer

    Washington, D.C., Dec. 20, 2021 (GLOBE NEWSWIRE) -- Washington DC, December  20, 2021 – Sayari Labs, the emerging leader in financial intelligence and supply chain risk solutions, announced the appointment of Edward Sander as Chief Product Officer. In his role, Ed leads Sayari's entire Product function and is responsible for its overall product strategy & direction, product roadmap, technology partnerships and go-to-market. Ed has two decades of experience running global software organisations and is an acknowledged market expert in financial crime, compliance and risk with specific expertise in anti-money laundering (AML), know-your-customer (KYC), customer due diligence (CDD) and enhan

    12/20/21 11:43:55 AM ET
    $MODN
    $NICE
    Computer Software: Programming Data Processing
    Technology
    Computer Software: Prepackaged Software

    $MODN
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

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    SEC Form SC 13G filed by Model N Inc.

    SC 13G - MODEL N, INC. (0001118417) (Subject)

    6/28/24 2:30:20 PM ET
    $MODN
    Computer Software: Programming Data Processing
    Technology

    SEC Form SC 13G/A filed by Model N Inc. (Amendment)

    SC 13G/A - MODEL N, INC. (0001118417) (Subject)

    5/9/24 1:16:11 PM ET
    $MODN
    Computer Software: Programming Data Processing
    Technology

    SEC Form SC 13G/A filed by Model N Inc. (Amendment)

    SC 13G/A - MODEL N, INC. (0001118417) (Subject)

    2/13/24 5:09:46 PM ET
    $MODN
    Computer Software: Programming Data Processing
    Technology

    $MODN
    SEC Filings

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    SEC Form 15-12G filed by Model N Inc.

    15-12G - MODEL N, INC. (0001118417) (Filer)

    7/8/24 4:05:55 PM ET
    $MODN
    Computer Software: Programming Data Processing
    Technology

    SEC Form S-8 POS filed by Model N Inc.

    S-8 POS - MODEL N, INC. (0001118417) (Filer)

    6/27/24 4:33:25 PM ET
    $MODN
    Computer Software: Programming Data Processing
    Technology

    SEC Form S-8 POS filed by Model N Inc.

    S-8 POS - MODEL N, INC. (0001118417) (Filer)

    6/27/24 4:08:55 PM ET
    $MODN
    Computer Software: Programming Data Processing
    Technology