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CST: 07/12/2019 09:19:32   

Altair Announces Second Quarter 2019 Financial Results

120 Days ago

2019 Second Quarter Software Product Revenue Increased 20% year-over-year

TROY, Mich., Aug. 08, 2019 (GLOBE NEWSWIRE) -- Altair (Nasdaq:ALTR), a global technology company providing solutions in product development, high-performance computing and data intelligence, today released its financial results for the second quarter ended June 30, 2019.

“We had a very strong second quarter and remain excited about the future of our industry and company.” said James Scapa, founder, chairman and chief executive officer. 

Second Quarter 2019 Financial Highlights

  • Software product revenue was $84.4 million, an increase of 20% from $70.6 million for the second quarter of 2018.
  • Non-GAAP software product revenue was $86.6 million, an increase of 23% from $70.6 million for the second quarter of 2018.  Non-GAAP software product revenue includes revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.
  • Total revenue was $106.8 million, an increase of 14% from $93.4 million for the second quarter of 2018.
  • Non-GAAP total revenue was $109.0 million, an increase of 17% from $93.4 million for the second quarter of 2018.  Non-GAAP total revenue includes revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.
  • Net loss was ($3.1) million, compared to net loss of ($1.1) million for the second quarter of 2018. Diluted net loss per share was ($0.04) based on 71.4 million diluted weighted average common shares outstanding, compared to diluted net loss per share of ($0.02) for the second quarter of 2018, based on 65.6 million diluted weighted average common shares outstanding.
  • Adjusted EBITDA was $5.2 million, compared to $5.3 million for the second quarter of 2018.  Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.
  • Modified Adjusted EBITDA was $7.4 million, compared to $5.3 million for the second quarter of 2018.  Modified Adjusted EBITDA represents Adjusted EBITDA adjusted for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.
  • Non-GAAP net income was $4.5 million, compared to $2.1 million for the second quarter of 2018. Non-GAAP diluted net income per share was $0.06 based on 77.7 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.03 for the second quarter of 2018, based on 77.0 million non-GAAP diluted common shares outstanding.  Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, revenue not recognized under GAAP due to acquisition accounting and special items as identified by management and described elsewhere in this press release.
  • Free cash flow, which consists of cash flow from operations less capital expenditures, was $4.5 million, compared to $9.2 million for the second quarter of 2018. 

Business Outlook
Based on information available as of today, Altair is issuing guidance for the third quarter and full year 2019. 

  (Unaudited)
(in millions) Third Quarter 2019 Full Year 2019
Software Product Revenue $ 79.0 to $ 81.0 $ 366.0 to $ 370.0
Non-GAAP Software Product Revenue $ 81.2   $ 83.2 $ 375.0   $ 379.0
Total Revenue $ 103.0   $ 105.0 $ 460.0   $ 464.0
Non-GAAP Total Revenue $ 105.2   $ 107.2 $ 469.0   $ 473.0
Net (Loss) Income $ (6.8)   $ (5.5) $ 10.5   $ 13.1
Non-GAAP Net Income $ 3.4   $ 4.7 $ 45.2   $ 47.8
Adjusted EBITDA $ 0.8   $ 2.8 $ 53.0   $ 57.0
Modified Adjusted EBITDA $ 3.0   $ 5.0 $ 62.0   $ 66.0
                     
(All figures in millions)                    


Conference Call Information
What: Altair’s Second Quarter 2019 Financial Results Conference Call
When: Thursday, August 8, 2019
Time: 4:30 p.m. ET
Live Call: (866) 754-5204, Domestic
  (636) 812-6621, International
Replay: (855) 859-2056, Conference ID 4996438, Domestic
  (404) 537-3406, Conference ID 4996438, International
Webcast: http://investor.altair.com  (live & replay)
*** 

Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Non-GAAP Software Product Revenue, Non-GAAP Total Revenue, Adjusted EBITDA, Modified Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net Income Per Share and Free Cash Flow.

Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

About Altair
Altair is a global technology company that provides software and cloud solutions in the areas of product design and development, high-performance computing (HPC) and data intelligence. Altair enables organizations across broad industry segments to compete more effectively in a connected world while creating a more sustainable future. To learn more, please visit www.altair.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the third quarter and full year 2019, statements regarding our anticipated success, expected expansion of our footprint, positioning for growth and convergence of technologies, and our reconciliations of projected non-GAAP financial measures.  These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Altair’s control. Altair’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Altair’s quarterly and annual reports filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Altair’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Altair undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Altair’s views as of any date subsequent to the date of this press release.

Investor and Media Relations
Dave Simon
Altair
248-614-2400 ext. 332
ir@altair.com

   
   
ALTAIR ENGINEERING INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
   
    June 30, 2019     December 31, 2018  
(In thousands)   (Unaudited)          
ASSETS                
CURRENT ASSETS:                
Cash and cash equivalents   $ 251,828     $ 35,345  
Accounts receivable, net     85,758       96,803  
Income tax receivable     8,515       4,431  
Prepaid expenses and other current assets     18,262       17,455  
Total current assets     364,363       154,034  
Property and equipment, net     34,050       30,153  
Operating lease right of use assets     28,878        
Goodwill     212,087       210,532  
Other intangible assets, net     64,874       69,836  
Deferred tax assets     5,901       5,354  
Other long-term assets     19,567       17,288  
TOTAL ASSETS   $ 729,720     $ 487,197  
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY  
CURRENT LIABILITIES:                
Current portion of long-term debt   $ 472     $ 331  
Accounts payable     6,462       8,357  
Accrued compensation and benefits     29,155       31,740  
Current portion of operating lease liabilities     9,412        
Other accrued expenses and current liabilities     27,979       27,039  
Deferred revenue     67,587       59,765  
Total current liabilities     141,067       127,232  
Long-term debt, net of current portion     173,157       31,417  
Operating lease liabilities, net of current portion     20,722        
Deferred revenue, non-current     6,219       6,754  
Other long-term liabilities     26,362       25,756  
TOTAL LIABILITIES     367,527       191,159  
Commitments and contingencies                
MEZZANINE EQUITY     2,352       2,352  
STOCKHOLDERS’ EQUITY:                
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding            
Common stock ($0.0001 par value)                
Class A common stock, authorized 513,797 shares, issued and outstanding 39,672
  and 38,349 shares as of June 30, 2019 and December 31, 2018, respectively
    4       4  
Class B common stock, authorized 41,203 shares, issued and outstanding 31,901
  and 32,171 shares as of June 30, 2019 and December 31, 2018, respectively
    3       3  
Additional paid-in capital     433,902       379,832  
Accumulated deficit     (64,964 )     (74,863 )
Accumulated other comprehensive loss     (9,104 )     (11,290 )
TOTAL STOCKHOLDERS’ EQUITY     359,841       293,686  
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY   $ 729,720     $ 487,197  
                 


ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
    Three Months Ended June 30,     Six Months Ended June 30,  
(in thousands, except per share data)   2019     2018     2019     2018  
Revenue                                
License   $ 56,653     $ 46,700     $ 133,274     $ 113,635  
Maintenance and other services     27,755       23,907       54,425       46,641  
Total software     84,408       70,607       187,699       160,276  
Software related services     7,907       8,707       17,679       18,180  
Total software and related services     92,315       79,314       205,378       178,456  
Client engineering services     12,412       12,417       24,462       24,497  
Other     2,046       1,629       4,792       3,664  
Total revenue     106,773       93,360       234,632       206,617  
Cost of revenue                                
License *     2,954       4,068       8,775       7,798  
Maintenance and other services *     9,430       7,915       17,961       15,107  
Total software     12,384       11,983       26,736       22,905  
Software related services     6,612       6,512       13,130       13,221  
Total software and related services     18,996       18,495       39,866       36,126  
Client engineering services     10,033       9,960       19,833       20,160  
Other     1,994       1,001       4,209       2,212  
Total cost of revenue     31,023       29,456       63,908       58,498  
Gross profit     75,750       63,904       170,724       148,119  
Operating expenses:                                
Research and development *     29,829       24,744       57,345       47,447  
Sales and marketing *     26,221       19,979       52,672       38,606  
General and administrative *     19,851       17,412       40,180       34,402  
Amortization of intangible assets     3,600       1,986       7,128       3,926  
Other operating income     (549 )     (392 )     (1,166 )     (2,583 )
Total operating expenses     78,952       63,729       156,159       121,798  
Operating (loss) income     (3,202 )     175       14,565       26,321  
Interest expense     590       45       860       61  
Other income, net     (505 )     (176 )     (115 )     (1,076 )
(Loss) income before income taxes     (3,287 )     306       13,820       27,336  
Income tax (benefit) expense     (167 )     1,386       3,921       3,732  
Net (loss) income   $ (3,120 )   $ (1,080 )   $ 9,899     $ 23,604  
Income per share:                                
Net (loss) income per share attributable to common                                
stockholders, basic   $ (0.04 )   $ (0.02 )   $ 0.14     $ 0.37  
Net (loss) income per share attributable to common                                
stockholders, diluted   $ (0.04 )   $ (0.02 )   $ 0.13     $ 0.32  
Weighted average shares outstanding:                                
Weighted average number of shares used in computing                                
net (loss) income per share, basic     71,373       65,580       71,081       64,614  
Weighted average number of shares used in computing                                
net (loss) income per share, diluted     71,373       65,580       77,017       72,881  
_________________
*   Amounts include stock-based compensation expense as follows (in thousands) (unaudited):
                               
                                 


         
    Three Months Ended June 30,   Six Months Ended June 30,
    2019   2018   2019   2018
Cost of revenue – software   $ 279   $ 8   $ 343   $ 16
Research and development     579     108     937     155
Sales and marketing     475     134     937     175
General and administrative     747     184     1,075     304
Total stock-based compensation expense   $ 2,080   $ 434   $ 3,292   $ 650
                         


ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
 
    Six Months Ended June 30,  
(In thousands)   2019     2018  
OPERATING ACTIVITIES:                
Net income   $ 9,899     $ 23,604  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     10,468       7,525  
Provision for bad debt     134       269  
Amortization of debt discount and issuance costs     459       12  
Stock-based compensation expense     3,292       650  
Deferred income taxes     (703 )     1,312  
Other, net     (17 )     (166 )
Changes in assets and liabilities:                
Accounts receivable     10,406       11,743  
Prepaid expenses and other current assets     (4,952 )     (3,454 )
Other long-term assets     (2,300 )     (276 )
Accounts payable     (2,187 )     335  
Accrued compensation and benefits     (2,455 )     73  
Other accrued expenses and current liabilities     1,887       (4,511 )
Operating lease right-of-use assets and liabilities, net     197        
Deferred revenue     7,740       197  
Net cash provided by operating activities     31,868       37,313  
INVESTING ACTIVITIES:                
Capital expenditures     (6,667 )     (3,130 )
Payments for acquisition of developed technology     (344 )     (2,738 )
Payments for acquisition of businesses, net of cash acquired     (709 )     (7,028 )
Other investing activities, net     16       38  
Net cash used in investing activities     (7,704 )     (12,858 )
FINANCING ACTIVITIES:                
Proceeds from issuance of convertible senior notes, net of underwriters'
  discount and commissions
    223,101        
Payments on revolving commitment     (127,941 )      
Borrowings under revolving commitment     96,991        
Proceeds from the exercise of stock options     1,270       1,668  
Payments for issuance costs of convertible senior notes     (1,018 )      
Payments for follow-on public offering and initial public offering costs           (468 )
Proceeds from issuance of Class A common stock in follow-on public offering,
  net of underwriters' discounts and commissions
          135,572  
Other financing activities     (259 )     (342 )
Net cash provided by financing activities     192,144       136,430  
Effect of exchange rate changes on cash, cash equivalents and restricted cash     187       (877 )
Net increase in cash, cash equivalents and restricted cash     216,495       160,008  
Cash, cash equivalents and restricted cash at beginning of year     35,685       39,578  
Cash, cash equivalents and restricted cash at end of period   $ 252,180     $ 199,586  
Supplemental disclosure of cash flow:                
Interest paid   $ 362     $ 41  
Income taxes paid   $ 4,054     $ 3,660  
Supplemental disclosure of non-cash investing and financing activities:                
Finance leases   $ 566     $ 1,010  
Property and equipment in accounts payable   $ 417     $ 935  
Convertible senior notes issuance costs in accounts payable   $ 216     $  
Follow-on public offering costs in accounts payable   $     $ 88  
Promissory notes issued and deferred payment obligations for acquisitions   $     $ 278  
                 

Financial Results

The following table provides a reconciliation of Non-GAAP net income and Non-GAAP diluted income per share to net (loss) income and (loss) income per share – diluted, the most comparable GAAP financial measures:

    (Unaudited)  
    Three Months Ended June 30,     Six Months Ended June 30,  
(in thousands, except per share amounts)   2019     2018     2019     2018  
Net (loss) income   $ (3,120 )   $ (1,080 )   $ 9,899     $ 23,604  
Stock-based compensation expense     2,080       434       3,292       650  
Amortization of intangible assets     3,600       1,986       7,128       3,926  
Acquisition related deferred revenue (1)     2,250             4,500        
Special adjustments (2)     776       929       1,004       (223 )
Income tax effect of non-GAAP adjustments     (1,057 )     (124 )     (1,827 )     (199 )
Non-GAAP net income   $ 4,529     $ 2,145     $ 23,996     $ 27,758  
                                 
(Loss) income per share - diluted   $ (0.04 )   $ (0.02 )   $ 0.13     $ 0.32  
Non-GAAP income per share - diluted   $ 0.06     $ 0.03     $ 0.31     $ 0.36  
                                 
GAAP diluted shares outstanding:     71,373       65,580       77,017       72,881  
Non-GAAP diluted shares outstanding:     77,700       77,000       77,700       77,000  

(1)  Represents revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.
(2)  Includes an impairment charge for royalty contracts resulting in $0.8 million and $0.9 million of expense for the three months ended June 30, 2019 and 2018, respectively, and $1.0 million and $1.8 million of expense for the six months ended June 30, 2019 and 2018, respectively. Includes a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income for the six months ended June 30, 2018.

 
The following table provides a reconciliation of Adjusted EBITDA and Modified Adjusted EBITDA to net (loss) income, the most comparable GAAP financial measure:
 
    (Unaudited)  
    Three Months Ended June 30,     Six Months Ended June 30,  
(in thousands)   2019     2018     2019     2018  
Net (loss) income   $ (3,120 )   $ (1,080 )   $ 9,899     $ 23,604  
Income tax (benefit) expense     (167 )     1,386       3,921       3,732  
Stock-based compensation expense     2,080       434       3,292       650  
Interest expense     590       45       860       61  
Interest income and other (1)     508       536       709       (719 )
Depreciation and amortization     5,274       3,982       10,468       7,525  
Adjusted EBITDA     5,165       5,303       29,149       34,853  
Acquisition related deferred revenue (2)     2,250             4,500        
Modified Adjusted EBITDA   $ 7,415     $ 5,303     $ 33,649     $ 34,853  

(1) Includes an impairment charge for royalty contracts resulting in $0.8 million and $0.9 million of expense for the three months ended June 30, 2019 and 2018, respectively, and $1.0 million and $1.8 million of expense for the six months ended June 30, 2019 and 2018, respectively. Includes a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income for the six months ended June 30, 2018.
(2) Represents revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

 
The following table provides a reconciliation of Non-GAAP total revenue to total revenue, the most comparable GAAP financial measure:
 
    (Unaudited)
    Three Months Ended June 30,     Six Months Ended June 30,
(in thousands)   2019     2018     2019     2018
Total revenue   $ 106,773     $ 93,360     $ 234,632     $ 206,617
Acquisition related deferred revenue(1)     2,250             4,500      
Non-GAAP total revenue   $ 109,023     $ 93,360     $ 239,132     $ 206,617

(1) Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

 
The following table provides a reconciliation of Non-GAAP total software product revenue to total software product revenue, the most comparable GAAP financial measure:
 
    (Unaudited)
    Three Months Ended June 30,   Six Months Ended June 30,
(in thousands)   2019   2018   2019   2018
Total software product revenue   $ 84,408   $ 70,607   $ 187,699   $ 160,276
Acquisition related deferred revenue(1)     2,250         4,500    
Non-GAAP total software product revenue   $ 86,658   $ 70,607   $ 192,199   $ 160,276

(1) Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

   
The following table provides a recompilation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:  
   
    (Unaudited)  
    Three Months Ended June 30,     Six Months Ended June 30,  
(in thousands)   2019     2018     2019     2018  
Net cash provided by operating activities   $ 6,553     $ 10,624     $ 31,868     $ 37,313  
Capital expenditures     (2,084 )     (1,446 )     (6,667 )     (3,130 )
Free cash flow   $ 4,469     $ 9,178     $ 25,201     $ 34,183  
                                 

Effective January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASC 606). The following table sets forth selected quarterly information under ASC 606 for 2018:

    (Unaudited)  
    Three months ended  
    ASC 606  
(in thousands)   March 31,
2018
    June 30,
2018
    September 30,
2018
    December 31,
2018
 
Software product revenue   $ 89,670     $ 70,606     $ 64,182     $ 79,903  
Total revenue     113,257       93,360       86,751       103,011  
Net income (loss)     24,684       (1,080 )     934       (9,003 )
Adjusted EBITDA     29,550       5,303       2,399       12,928  
                                 

Business Outlook

The following table provides a reconciliation of projected Non-GAAP net income to projected net (loss) income, the most comparable GAAP financial measure:

    (Unaudited)  
    Three Months ending
September 30, 2019
    Year Ending
December 31, 2019
 
(in thousands)   Low     High     Low     High  
Net (loss) income   $ (6,750 )   $ (5,450 )   $ 10,500     $ 13,100  
Stock-based compensation expense     2,100       2,100       7,500       7,500  
Amortization of intangible assets     3,800       3,800       15,200       15,200  
Acquisition related deferred revenue(1)     2,250       2,250       9,000       9,000  
Non-recurring adjustments     2,000       2,000       3,000       3,000  
Non-GAAP net income   $ 3,400     $ 4,700     $ 45,200     $ 47,800  

(1) Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

 
The following table provides a reconciliation of projected Adjusted EBITDA and Modified Adjusted EBITDA to projected net (loss) income, the most comparable GAAP financial measure:
 
    (Unaudited)
    Three Months ending
September 30, 2019
    Year Ending
December 31, 2019
(in thousands)   Low     High     Low   High
Net (loss) income   $ (6,750 )   $ (5,450 )   $ 10,500   $ 13,100
Income tax (benefit) expense     (3,600 )     (2,900 )     5,700     7,100
Stock-based compensation expense     2,100       2,100       7,500     7,500
Interest expense     2,700       2,700       6,400     6,400
Depreciation and amortization     5,300       5,300       22,000     22,000
Interest income and other non-recurring adjustments     1,000       1,000       900     900
Adjusted EBITDA     750       2,750       53,000     57,000
Acquisition related deferred revenue(1)     2,250       2,250       9,000     9,000
Modified Adjusted EBITDA   $ 3,000     $ 5,000     $ 62,000   $ 66,000

(1)  Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

 
The following table provides a reconciliation of projected Non-GAAP total revenue to projected total revenue, the most comparable GAAP financial measure:
 
    (Unaudited)
    Three Months ending
September 30, 2019
  Year Ending
December 31, 2019
(in millions)   Low   High   Low   High
Total revenue   $ 103.0   $ 105.0   $ 460.0   $ 464.0
Acquisition related deferred revenue(1)     2.2     2.2     9.0     9.0
Non-GAAP total revenue   $ 105.2   $ 107.2   $ 469.0   $ 473.0

(1)  Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

 
The following table provides a reconciliation of projected Non-GAAP total software product revenue to projected total software product revenue, the most comparable GAAP financial measure:
 
    (Unaudited)  
    Three Months ending
September 30, 2019
    Year Ending
December 31, 2019
 
(in millions)   Low     High     Low     High  
Total software product revenue   $ 79.0     $ 81.0     $ 366.0     $ 370.0  
Acquisition related deferred revenue(1)     2.2       2.2       9.0       9.0  
Non-GAAP total software product revenue   $ 81.2     $ 83.2     $ 375.0     $ 379.0  

(1)  Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

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