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Press Release: New Relic Announces Third Quarter -4-

· 02/04/2021 16:05
Common stock, $0.001 par value 63 60 Treasury stock - at cost (260 shares) (263) (263) Additional paid-in capital 956,670 780,479 Accumulated other comprehensive income 932 4,869 Accumulated deficit (525,439) (394,506) ----------------- -------------- Total stockholders' equity 431,963 390,639 ----------------- -------------- Total liabilities, redeemable non-controlling interest, and stockholders' equity $ 1,333,509 $ 1,258,434 ================= ============== Condensed Consolidated Statements of Cash Flows (In thousands; unaudited) Nine Months Ended December 31, -------------------------------- 2020 2019 ---------------- -------------- Cash flows from operating activities: Net loss attributable to New Relic $ (130,933) $ (60,978) Net loss attributable to redeemable non-controlling interest $ (1,059) $ (1,437) ---------------- -------------- Net loss: $ (131,992) $ (62,415) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 66,315 56,237 Stock-based compensation expense 103,044 70,496 Amortization of debt discount and issuance costs 16,632 15,718 Gain on lease modification - (3,006) Other 1,812 (2,919) Changes in operating assets and liabilities, net of acquisition of business: Accounts receivable, net 3,586 10,015 Prepaid expenses and other assets (999) (204) Deferred contract acquisition costs (33,093) (25,786) Lease right-of-use assets (1,338) 19,539 Accounts payable 10,015 4,257 Accrued compensation and benefits and other liabilities 18,141 1,136 Lease liabilities 2,158 (16,812) Deferred revenue (12,896) (34,590) ---------------- -------------- Net cash provided by operating activities 41,385 31,666 Cash flows from investing activities: Purchases of property and equipment (15,799) (49,705) Cash paid for acquisition, net of cash acquired (41,536) (4,250) Purchases of short-term investments (293,844) (337,070) Proceeds from sale and maturity of short-term investments 228,050 292,409 Capitalized software development costs (9,739) (4,463) ---------------- -------------- Net cash used in investing activities (132,868) (103,079) Cash flows from financing activities: Investment from redeemable non-controlling interest - 978 Proceeds from employee stock purchase plan 6,494 5,933 Proceeds from exercise of employee stock options 3,632 5,977 ---------------- -------------- Net cash provided by financing activities 10,126 12,888 ---------------- -------------- Net decrease in cash, cash equivalents and restricted cash (81,357) (58,525) Cash, cash equivalents and restricted cash at beginning of period 298,164 243,161 ---------------- -------------- Cash, cash equivalents and restricted cash at end of period $ 216,807 $ 184,636 ================ ============== Reconciliation from GAAP to Non-GAAP Results (In thousands, except per share data; unaudited) Three Months Ended Nine Months Ended December December 31, 31, -------------------------- -------------------------- 2020 2019 2020 2019 ------------ ------------ ------------ ------------ Reconciliation of gross profit and gross margin: ---------------- GAAP gross profit $ 120,372 $ 126,626 $ 370,540 $ 364,689 Plus: Stock-based compensation expense 1,472 1,315 4,596 3,837 Plus: Lease exit costs and accelerated depreciation expense - - - 73 Plus: Amortization of purchased intangibles 1,277 415 3,829 1,295 Plus: Amortization of stock-based compensation capitalized in software development costs 339 219 843 653 Plus: Employer payroll tax on employee equity incentive plans 36 33 177 186 ------------ ------------ ------------ ------------ Non-GAAP gross profit $ 123,496 $ 128,608 $ 379,985 $ 370,733 ============ ============ ============ ============ GAAP gross margin 72% 83% 75% 83% Non-GAAP adjustments 2% 1% 2% 1% ------------ ------------ ------------ ------------ Non-GAAP gross margin 74% 84% 77% 84% ============ ============ ============ ============ Reconciliation of operating expenses: ---------------- GAAP research and development $ 45,773 $ 38,387 $ 131,245 $ 106,858 Less: Stock-based compensation expense (10,960) (8,611) (30,214) (23,073) Less: Lease exit costs and accelerated depreciation expense - - - (326) Less: Employer payroll tax on employee equity incentive plans (154) (120) (713) (641) ------------ ------------ ------------ ------------ Non-GAAP research and development $ 34,659 $ 29,656 $ 100,318 $ 82,818 ============ ============ ============ ============ GAAP sales and marketing $ 92,392 $ 87,704 $ 266,906 $ 244,711 Less: Stock-based compensation expense (15,115) (11,090) (42,960) (30,682) Less: Lease exit costs and accelerated depreciation expense - - - (2,240) Less: Employer payroll tax on employee equity incentive plans (155) (177) (671) (615) ------------ ------------ ------------ ------------ Non-GAAP sales and marketing $ 77,122 $ 76,437 $ 223,275 $ 211,174 ============ ============ ============ ============ GAAP general and administrative $ 30,249 $ 24,751 $ 89,481 $ 71,129 Less: Stock-based compensation expense (8,922) (4,934) (25,274) (12,904) Less: Lease exit costs and accelerated depreciation expense - - - (1,002) Less: Transaction costs related to acquisition (885) (251) (885) (251) Less: Lawsuit litigation cost and other expense (217) - (254) (1,521) Less: Employer payroll tax on employee equity incentive plans (116) (52) (559) (244) ------------ ------------ ------------ ------------ Non-GAAP general and administrative $ 20,109 $ 19,514 $ 62,509 $ 55,207 ============ ============ ============ ============ Reconciliation of income (loss) from operations and operating margin: ---------------- GAAP loss from operations $ (48,042) $ (24,216) $ (117,092) $ (58,009) Plus: Stock-based compensation expense 36,469 25,950 103,044 70,496 Plus: Lease exit costs and accelerated depreciation expense - - - 3,641 Plus: Amortization of purchased intangibles 1,277 415 3,829 1,295

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February 04, 2021 16:05 ET (21:05 GMT)