Total Revenue of $60.9 Million, Up 56% Year-over-Year
Subscription and Support Revenue of $50.6 Million, Up 62% Year-over-Year
San Francisco – May 4, 2017 – MuleSoft, Inc. (NYSE: MULE), provider of the leading platform for building application networks, today announced financial results for its first quarter ended March 31, 2017.
“The first quarter was a strong start to 2017 as we continued to deliver rapid growth at scale,” said Greg Schott, chairman and CEO of MuleSoft. “Companies across every industry are working to leverage modern technologies such as cloud, SaaS applications, mobile and IoT in order to digitally transform their business. MuleSoft is seeing strong demand as we are increasingly being adopted by our customers as an enterprise standard for connecting IT assets in a pluggable and reusable manner to increase agility and accelerate innovation.”
Schott added, “The completion of our initial public offering during the first quarter was a milestone event for our company. It further increases the market’s awareness of MuleSoft and provides us with additional resources to execute against our long-term growth initiatives.”
First Quarter 2017 Financial Highlights:
- Revenue: Total revenue was $60.9 million, an increase of 56% year-over-year. Subscription and support revenue was $50.6 million, an increase of 62% year-over-year. Professional services and other revenue was $10.3 million, an increase of 33% year-over-year.
- Gross margin: GAAP gross margin was 75.0%, consistent with the first quarter of 2016. Non-GAAP gross margin was 75.7% for the first quarter of 2017, an increase of 40 basis points compared to 75.3% in the year-ago period.
- Operating loss: GAAP operating loss was $9.9 million, compared to a GAAP operating loss of $8.6 million for the first quarter of 2016. Non-GAAP operating loss for the first quarter of 2017 was $6.6 million, compared to a non-GAAP operating loss of $7.5 million in the year-ago period.
- Loss per share: GAAP net loss per share was $0.27 based on 37.4 million weighted average shares outstanding in the first quarter of 2017, compared to GAAP net loss per share of $0.45 based on 19.4 million weighted average shares in the first quarter of 2016.
Non-GAAP net loss per share was $0.06 based on 114.8 million non-GAAP weighted average shares outstanding in the first quarter of 2017, compared to non-GAAP net loss per share of $0.07 based on 109.6 million non-GAAP weighted average shares in the first quarter of 2016.
- Deferred Revenue: Total deferred revenue was $136.7 million at the end of the first quarter 2017, an increase of 61% year-over-year. Short-term deferred revenue was $131.3 million at the end of the first quarter 2017, an increase of 61% year-over-year.
- Cash: Cash from operating activities was ($0.2) million, compared to break-even for the first quarter of 2016. Free cash flow, which is a non-GAAP measure that reflects cash from operating activities less cash used for capital expenditures, was ($1.6) million for the first quarter of 2017, compared to ($0.2) million in the year-ago period.
Cash and short-term investments were $339.6 million at the end of the first quarter 2017, an increase from $98.5 million at the end of the fourth quarter 2016 due primarily to $236.4 million of net proceeds associated with the company’s initial public offering.
Other Recent Highlights:
- Major Enhancements to Anypoint Platform™: MuleSoft announced the next major release of its Anypoint Platform, the Crowd release, at CONNECT 2017. This release introduces significant updates to Anypoint Exchange and the new Anypoint Design Center, making the discovery, promotion and consumption of composable IT assets, such as APIs and best practice templates, both easier and more natural for users of the platform. By enabling self-service access to reusable assets, central IT organizations can pave the road for innovation across the enterprise, and enable line-of-business and broader IT teams to innovate freely, deliver better customer experiences, quickly introduce new products to market and contribute to the buildout of application networks.
- Record Attendance at CONNECT 2017: MuleSoft had over 3,000 registrants at its annual CONNECT 2017, a leading conference for digital business where CIOs, IT leaders and developers come together to discuss how application networks are enabling businesses agility and driving innovation. Presentations were led by industry leaders including Accenture, Airbnb, Deloitte Digital, Farmers Insurance, Guidewire, New Relic, PetSmart, Splunk, Wells Fargo, and Zendesk.
- Completed Initial Public Offering: MuleSoft completed its Initial Public Offering on the New York Stock Exchange on March 17, 2017. After the underwriters’ exercise of the option to purchase additional shares, MuleSoft sold a total of 14,950,000 shares to the public at a price of $17.00 per share for a total of $236.4 million in net proceeds.
MuleSoft is providing guidance for its second quarter ending June 30, 2017 as follows:
- Total revenue between $63 million and $64 million
- Non-GAAP operating loss between $16 million and $17 million
- Non-GAAP net loss per share of approximately $0.13 per share
- Weighted average shares outstanding of approximately 128 million
The company is also providing guidance for the full year 2017 ending December 31, 2017 as follows:
- Total revenue between $271 million and $274 million
- Non-GAAP operating loss between $46 million and $49 million
- Non-GAAP net loss per share between $0.37 and $0.40
- Non-GAAP weighted average shares outstanding of approximately 126 million
All forward-looking non-GAAP measures exclude estimates for stock-based compensation expenses. A reconciliation of these non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
Conference Call Information:
MuleSoft will host a conference call at 2 p.m. Pacific Time (or 5 p.m. Eastern Time) today, May 4, 2017, to discuss its financial results. A live webcast of the call will be available on the MuleSoft website at investors.mulesoft.com. A live dial-in will be available at (866) 807-9684 for domestic participants and at (412) 317-5415 for international participants.
For more information regarding Outlook and the forward-looking statements contained in the release, please visit our Investor Relations page: https://investors.mulesoft.com/news/2017/05-04-2017-211852967
MuleSoft’s mission is to help organizations change and innovate faster by making it easy to connect the world’s applications, data and devices With its API-led approach to connectivity, MuleSoft’s market-leading Anypoint Platform™ is enabling over 1,000 organizations in approximately 60 countries to build application networks. For more information, visit https://www.mulesoft.com.
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