CallidusCloud Reports Record Q4 Revenue of $38.1 Million; 42% Year-Over-Year Increase in SaaS Revenue

PLEASANTON, CA--(Marketwired - Feb 5, 2015) - Callidus Software Inc. (NASDAQ: CALD^[1]), a global leader in cloud-based sales, marketing and learning solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2014.

"Q4 2014 was another strong quarter. We broke our SaaS bookings record, had record total revenue and accelerated our SaaS revenue growth again off of a higher base whilst we made money," said Leslie Stretch president and CEO of CallidusCloud. "In 2015 we are focused on a fabulous customer experience, best in class SaaS revenue growth and profitability."

Financial Highlights for the Fourth Quarter 2014
Total revenue was $38.1 million for the fourth quarter, an increase of 26%. Total recurring revenue was $28.3 million, which includes SaaS revenue of $24.4 million and maintenance revenue of $3.9 million. SaaS revenue increased 42% over the same quarter in the prior year, benefiting from success in our Lead to-Money solution, and the recent Clicktools acquisition. Services and license revenue was $9.8 million, consisting of $9.7 million in services revenue and $0.1 million in license revenue, increased 11% compared to the same quarter in the prior year. Cash and short-term investments were $37.0 million.

GAAP Performance

• Recurring revenue gross margin was 73%, compared to 67% for the same quarter in the prior year.
• Operating loss was $3.5 million compared to $1.6 million for the same quarter in the prior year.
• Net loss was $4.1 million, or ($0.08) on a per share basis, compared to a net loss of $7.0 million, or ($0.17) per share, for the same quarter in the prior year.
• Cash used in operations was $965 thousand in the current quarter compared to $6.1 million cash provided by operations for the same quarter in the prior year.

Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

• Recurring revenue gross margin was 76%, compared to 70% for the same quarter in the prior year.
• Operating income was $2.9 million compared to $1.8 million for the same quarter in the prior year.
• Net income was $2.3 million, or $0.05 per fully diluted share, compared to $1.7 million, or $0.04 per fully diluted share for the same quarter in the prior year.

Financial Highlights for the Full Fiscal 2014
Total revenue was $136.6 million for the full fiscal year, an increase of 22%. Total recurring revenue was $99.8 million, which includes SaaS revenue of $83.7 million and maintenance revenue of $16.1 million. SaaS revenue increased 27% over the prior year. Services and license revenue of $36.8 million consisted of $32.4 million in services revenue and $4.4 million in license revenue, which increased 20% compared to the prior year.

GAAP Performance

• Recurring revenue gross margin was 69%, compared to 65% in the prior year.
• Operating loss was $13.5 million compared to $11.7 million in the prior year.
• Net loss was $11.6 million, or ($0.24) on a per share basis, compared to a net loss of $21.4 million, or ($0.55) per share in the prior year.

Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

• Recurring revenue gross margin was 73% compared to 68% in the prior year.
• Operating income was $8.7 million compared to $5.2 million in the prior year.
• Net income was $7.1 million, or $0.14 per fully diluted share, compared to $3.3 million, or $0.07 per fully diluted share in the prior year.

Business Highlights for the Fourth Quarter 2014

• CallidusCloud executed its largest conversion deal in its history. The three-year irrevocable agreement is approximately $7 million in total contract value.
• CallidusCloud announced the availability of its industry-leading Commissions and Configure Price Quote solutions for the Salesforce 1 Mobile App that enable customers to accelerate sales cycles and drive higher close rates from their mobile devices.
• CallidusCloud released a new component of Thunderbridge which provides customers with powerful out-of-the-box insights into key sales performance metrics. The self service reports require no-coding and will greatly accelerate the time to value for customers.
• CallidusCloud's Lead to Money suite was awarded a 2014 Best in Biz award for enterprise product of the year and received TMC's Cloud Computing Product of the Year award.

Financial Outlook for 2015 - First Quarter and Full Year
For the first quarter of 2015, the Company expects total revenue to be between $38.0 million and $39.0 million. GAAP operating loss is expected to be between $2.6 million and $3.4 million with GAAP net loss per share between ($0.05) to ($0.07). Non-GAAP operating income is expected to be between $2.5 million and $3.0 million with non-GAAP income per diluted share between $0.04 and $0.06.

For the full year of 2015, the Company is raising previous guidance to the range of $161.0 million to $166.0 million. GAAP operating loss is expected to be between $4.5 million and $7.0 million with GAAP net loss per share between ($0.15) to ($0.19). Non-GAAP operating income is expected to be between $14.5 million and $16.5 million with non-GAAP income per diluted share between $0.23 and $0.27.

Conference Call
In conjunction with this announcement CallidusCloud will host a conference call at 1:30 p.m. Pacific Standard