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Actionable news in APIC: Apigee Corp,

Apigee Announces Record Revenue of $22.9 Million in Its Second Quarter; 35% Year-Over-Year Growth in Q2 16 Total Revenue

SAN JOSE, Calif., Feb 29, 2016 (GLOBE NEWSWIRE via COMTEX) --

  • Q2 Revenue and non-GAAP operating loss better than guidance ranges
  • Q2 Product Revenue of $19.7 million a 54% year-over-year increase
  • Q2 Gross Profit of $16.2 million, a 53% year-over-year increase
  • Accelerates guidance for positive operating cash flow, now expected by Q2 Fiscal 2017

"We are pleased to deliver Q2 16 revenue above our guidance range," said Chet Kapoor, Apigee CEO. "Companies across industry sectors are increasingly adopting an API-centric digital platform approach to deliver digital initiatives faster and at a lower cost, and Apigee delivers the scalable, reliable API platform to run them. During Q2, we performed well in the financial services and insurance vertical, where we added four Fortune 100 companies to our blue chip customer base. As a result of continued revenue growth and improved operational efficiency, we now believe that we will achieve our goal of becoming cash flow positive by Q2 fiscal 2017, three quarters earlier than our previous guidance."

Second Quarter Fiscal 2016 Highlights:

For Q2 16, Apigee reported total revenue of $22.9 million, above the high end of its guidance range of $21.2 million to $22.2 million. Q2 16 total revenue was up 35% compared to $17.0 million in Q2 15. Apigee reported Q2 16 product revenue (defined as license revenue plus subscription and support revenue) of $19.7 million, up 54% from $12.8 million in Q2 15. Q2 16 gross billings were $25.7 million, up 13% from $22.8 million a year ago. Q2 16 product gross billings were $20.9 million, up 18% from $17.8 million a year ago.

Apigee reported Q2 16 GAAP gross margin of 70.9%, up from 62.5% in Q2 15, and non-GAAP gross margin of 72.5%, up from 64.1% a year ago. Apigee reported Q2 16 GAAP operating loss of $8.7 million, compared to $10.8 million a year ago. Q2 16 non-GAAP operating loss was $6.6 million, compared to $9.6 million in Q2 15. Q2 16 GAAP net loss per share was $0.31. Q2 16 non-GAAP net loss per share was $0.24, better than its guidance range of non--GAAP net loss per share of $0.33 to $0.36. Q2 16 operating cash flow was ($8.1) million, compared to ($11.9) million a year ago. Total deferred revenue was $45.4 million at the end of Q2 16, up 37% from $33.2 million at the end of Q2 15. The balance of cash and cash equivalents at the end of Q2 16 was $74.0 million.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Business Update:

  • Apigee now has more than 260 customers, up more than 90 compared to the end of Q2 15. In Q2 16, we did expansion deals with more than 50 customers.
  • Our Q2 16 simple dollar-based renewal rate exceeded 90% for the third consecutive quarter.
  • In the quarter, Apigee added new customer relationships with four Fortune 100 financial services and insurance companies.
  • New and expansion customers in the quarter included AccuWeather, Allstate, Citrix, Cr�dit Mutuel Arkea, Infogroup, The Nielsen Company, Orange, Sage Payment Solutions, T--Mobile, and Verizon Enterprise Solutions.
  • Apigee announced in February that in conjunction with the Amazon Web Services (AWS) Lambda team, we have been developing software to simplify and accelerate exposure of AWS services on Apigee Edge. In addition, we published a new reference architecture designed to make it easier for developers to use Apigee Edge on AWS http://apigee.com/about/press-release/apigee-announces-new-reference-architecture-apigee-api-management-aws and jointly held a webinar on "Bringing API Management to AWS-Powered Backends http://apigee.com/about/blog/developer/bringing-api-management-aws-powered-backends.
  • Today, Apigee announced that it is supporting improved patient data interoperability across the Salesforce Health Cloud with Apigee Edge API management software and Apigee Health APIx. Apigee Health APIx is a software solution announced last October that assists healthcare providers in accelerating the development and delivery of digital services based on FHIR (Fast Healthcare Interoperability Resources) APIs, and helps securely connect data from systems of record to Salesforce Health Cloud. Apigee will join Salesforce at HIMSS for a special panel titled "The State of Interoperability in the Cloud," featuring Aneesh Chopra, the former (and first) chief technology officer of the United States.
  • Apigee held a FinTech API Summit in February, with speakers from Forrester, First Data, Tradier, and Vantiv, as well as Apigee. With more than 140 attendees, the event was sold out and Apigee will host another edition of the Summit in April 2016. http://apigee.com/about/search/gss/fintech%20summit
  • Apigee announced a partnership with Tata Consultancy Services (TCS), a global leader in IT services, digital and business solutions, to help accelerate digital transformation for businesses globally.
  • New partners in the quarter included AIXTEX Corporation, Apcera, Capgemini Technology Services, Delphix, Fasconnect, Master Works, Mindtree, New Context Services, RCBJ Consulting, Seed Technology Solutions Information and ValueLabs Global.

Guidance:

As of February 29, 2016, Apigee is providing initial guidance for its third quarter fiscal 2016 and updating guidance for the fiscal year ending July 31, 2016.

Third Quarter Fiscal 2016 Guidance:

  • Total revenue is expected to be in the range of $22.5 million to $23.5 million.
  • Non-GAAP operating loss is expected to be in the range of $7.5 million to $8.5 million.
  • Non-GAAP net loss per share is expected to be in the range of $0.25 to $0.29 based on approximately 29.8 million GAAP weighted-average shares outstanding.
  • Gross billings are expected to be in the range of $27.5 million to $29.5 million.

Full Year Fiscal 2016 Guidance:

  • Total revenue is expected to be in the range of $89.0 million to $92.0 million.
  • Total license revenue is expected to be in the range of $28.5 million to $31.5 million.
  • Non-GAAP operating loss is expected to be in the range of $34.0 million to $36.0 million.
  • Non-GAAP net loss per share is expected to be in the range of $1.13 to $1.20 based on approximately 30.0 million GAAP weighted-average shares outstanding.
  • Gross billings are expected to be in the range of $104.0 million to $110.0 million.

Conference Call Details:

  • What: Results of Apigee Corporation (APIC) second quarter fiscal year 2016 ended January 31, 2016.
  • When: Monday, February 29, 2016 at 2 pm PST (5 pm EST).
  • Dial in: To access the call in the United States, please dial (877) 407-4018, and for international callers please dial (201) 689-8471. Callers may provide confirmation number 13630233 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
  • Replay: A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the United States, please dial (877) 870-5176, and for international callers please dial (858) 384-5517 and enter access code 13630233.

About Apigee

Apigee(R) APIC, +0.86% provides an intelligent API platform for digital business. Many of the world's largest organizations select Apigee to enable their digital business, including 30 percent of the Fortune 100, five of the top six Global 2000 retail companies, and five of the top 10 global telecommunications companies. Apigee customers include global enterprises such as Walgreens, Burberry, Morningstar, and First Data. Apigee is headquartered in...


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