ACTIVE Network, ‘the leader in cloud-based Activity and Participant Management (APM) solutions’, has confirmed its financial results for Q4 2012 and the year ended 31 December 2012.
Q4 2012 financial highlights:
- Total net revenue up 23% year on year to US$93.7 million
- Technology revenue increased 25% and constituted 88%, or US$82.0 million, of total net revenue
- Net registration revenue increased 20% to US$55.8 million with the number of registrations up 7% and the revenue per registration up 13%.
- Marketing services revenue constituted 12%, or US$11.6 million, of total net revenue
- Net loss was US$14.3 million compared to a net loss of $8.5 million in the previous year period
- Adjusted EBITDA, a non-GAAP financial measure, was US$5.9 million up from US$0.4 million in 2011 (Adjusted EBITDA in Q4 2011 was lower as this period included US$1.9 million of severance costs associated with the acquisition of StarCite)
Fiscal year 2012 financial highlights:
- Total net revenue up 24% year on year to US$418.9 million
- Technology revenue increased 28% and constituted 88%, or US$370.5 million, of total net revenue
- Net registration revenue increased 21% to US$275.8 million with the number of registrations up 12% and the revenue per registration up 8%.
- Approximately 55,000 organizations utilized the company’s technology solutions in 2012, up 7%
- Marketing services revenue constituted 12%, or US$48.4 million, of total net revenue
- Net loss was US$43.0 million compared to a net loss of US$27.1 million
- Adjusted EBITDA, was US$38.4 million
“In 2012, we achieved the key technology milestones we established at the beginning of the year,” said Dave Alberga Executive Chairman of ACTIVE Network. “We made strong progress in transitioning our Endurance customers onto ActiveWorks, and we delivered on our data centre consolidation targets. We continue to drive innovation and adoption of our horizontal ActiveWorks platform.”
“We delivered 23% revenue growth in the fourth quarter and 24% for the full year 2012,” added Matt Landa, CEO of ACTIVE Network. “In the fourth quarter, our cross-selling efforts gained momentum as we brought in a number of Fortune 500 customers that now use our combined Strategic Meetings Management and Conference solution.”
Landa continued, “We generated positive operating cash flow of US$27 million and ended the year with a strong balance sheet. As we enter 2013, I am excited about our leading market position and our ability to capitalize on new opportunities. During the year, we will continue to make targeted investments in our sales capabilities to drive increased adoption of our APM technology.”
ACTIVE cited a number of Q4 2012 key business highlights:
- Customer highlights included wins from City of Santa Monica, San Antonio YMCA, and Sun Valley Resort and strong technology successes with Loews Hotels and Nestlé
- ACTIVE launched Registration Protector in partnership with Allianz Global to protect registration fees for both event organizers and participants when participants can’t show up on race day
- ACTIVE Access, a new enhanced developer centre, brought together all aspects of ACTIVE Network’s distribution offerings in a single, user-friendly site, developer.active.com
- Internationally, ACTIVE expanded its footprint announcing that it has become the exclusive technology partner for RUN Ireland, the largest source for running events in the country
- Extended ActiveWorks Endurance platform to Australia in October and experiencing strong initial adoption
“Our fourth quarter results were in-line with our guidance – as registrations, one of our main drivers, accelerated 7% and revenue per registration grew 13% from the prior year period,” said Scott Mendel, CFO of ACTIVE Network. “During 2012, approximately 55,000 organizations used our technology solutions to manage their events and activities, up 7% over 2011.”
Financial outlook
First Quarter 2013 – For the first quarter of 2013, ACTIVE Network expects total revenue to be in the range of US$102 million to US$107 million. Registrations are expected to grow approximately 2% to 7% and revenue per registration is expected to grow approximately 7% to 9% compared to the same period in the prior year. The company expects Adjusted EBITDA in the range of US$2 million to US$5 million. The company expects a net loss of US$21 million to US$17 million.
Full Year 2013 – Active Network reiterated financial guidance for full year 2013. Total revenue is expected to be in the range of US$470 million to US$480 million and Adjusted EBITDA is expected to be in the range of US$50 million to US$54 million. The company expects a net loss of US$38 million to US$31 million.
