athenahealth — Investor Day (December 2015)
124 slides from athenahealth's investor day presentation, Dec 10, 2015
Slide 1: 8th Annual Investor Summit December 10, 2015
8th Annual Investor Summit December 10, 2015
Slide 2: Welcome to Our 8th Annual Investor Summit
Welcome to Our 8th Annual Investor Summit Dana Quattrochi Investor Relations
Slide 3: Agenda
Agenda 3 Opening Remarks Jonathan Bush, Chairman & Chief Executive Officer 1 2 Business Model and Financial Guidance Kristi Matus, Chief Financial & Administrative Officer 3 Network Hitting a Tipping Point Doran Robinson, athenaCoordinator 4 Network Expanding Across the Continuum Kyle Armbrester, Ch
Slide 4: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements reflecting athenahealth, Inc. (“athenahealth” or “we”) management’s expectations for: futur
Slide 5: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures 5 In our earnings releases, conference calls, slide presentations, or webcasts, we may use or discuss non-GAAP financial measures as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, a
Slide 6: Video
Video
Slide 7: Opening Remarks
Opening Remarks Jonathan Bush Chairman & CEO
Slide 8: Vision and Mission
An information backbone that helps health care work as it should. To be health care providers’ most trusted service, helping them do well by doing the right thing. VISION MISSION
Slide 9: Software, knowledge and services balance
9 SOFTWARE KNOWLEDGE SERVICES SERVICE • Reminders • Eligibility • Submission • Denials • Posting • Documents • Interfaces • SAS70 • Perf. Coaching • Credentialing The ideal balance between what you do best and what we do best
Slide 10: We deliver constantly updated knowledge into the workflow
We deliver constantly updated knowledge into the workflow 10 KNOWLEDGE SERVICE • MU • P4P • ICD 10 • CPT • Formulary • D2D • Care Reminders • Local Rules SOFTWARE Rules Engine
Slide 11: We view network as our key enabler
We view network as our key enabler 11 SOFTWARE KNOWLEDGE SERVICE SOFT • EMR • PMIS • Portal • Biz Intelligence • Pop health
Slide 12: We view network as our key enabler
We view network as our key enabler 12 SOFTWARE KNOWLEDGE SERVICE SOFT • EMR • PMIS • Portal • Biz Intelligence • Pop health NETWORK
Slide 13: We view network as our key enabler
We view network as our key enabler 13 SOFTWARE KNOWLEDGE SERVICE SOFTNETWORK 13M of those patients went to more than one athena provider athenaNet providers have seen 36M patients in 2015
Slide 14: The network is the computer
“the network is the computer”
Slide 15: Today, you will hear about the Network
Today, you will hear about the Network 15 The Network is hitting a tipping point 1 2 3 The Network is expanding across the continuum The Network is fueling our growth 4 The Network is fueling our clients’ growth
Slide 16: Health care needs its cloud-based platform
Health care needs its cloud-based platform Become the platform to support the network 16
Slide 17: Business Model and Financial Guidance
Business Model and Financial Guidance Kristi Matus Chief Financial & Administrative Officer
Slide 18: We continue to follow the same principles
We continue to follow the same principles 18 To build the national health information backbone. To be health care providers’ most trusted service, helping them do well by doing the right thing. We are teachers and learners; in it for the mission and rewarded by team success. VISION MISSION CULTURE
Slide 19: A strong network of teachers and learners
A strong network of teachers and learners 19 vibrant passionate e xpo se d contagious supportive enterprising accepting fun innovative vulnerable co llab o rat iv e te a c h in g dynamic brutally hones t transpar e n t teamwork proud altruistic human audacious learning Grow Talent Development Thrive
Slide 20: We continue to focus our work with a one-pager
We continue to focus our work with a one-pager 20 athenaNation • Develop seamless connection & knowledge flow among all employees and geographies • Execute “athena-Moves-Faster” • Reboot talent acquisition, management and development function athenaNet • Make athenahealth the continuum of care clini
Slide 21: Balanced corporate scorecard
We continue to measure our performance using a balanced corporate scorecard 21 • Bookings • Non-GAAP Operating Income Financial (35% weight) Satisfaction (15% weight) Performance (40% weight) Stability (10% weight) • Net Promoter Score • Service Performance Index • Voluntary Turnover • Employee Enga
Slide 22: We are organized around our strategic priorities
We are organized around our strategic priorities 22 Sales, onboarding, and account management for clients on athenahealth’s core services athenahealth network Administration of athenaNation Awareness by and access to the nation’s health care providers Creation and incubation of our new services and
Slide 23: Senior leadership organized by service
And, we have reached a level of scale to organize our senior leadership by service 23 athenaCoordinator Doran Robinson Healthcare Transactions Emerging Services Kyle Armbrester Chief Product Officer athenaClinicals Todd Rothenhaus, MD Chief Medical Officer athenaCollector David Tassoni Operations at
Slide 24: Track record of profitable growth with significant opportunity ahead
We have a consistent track record of profitable growth with significant opportunity ahead of us 24 Our strategies target massive, untapped addressable market opportunities 1 2 3 Our success is aligned with our clients’ long- term success Our focused investments fuel future growth and profitability
Slide 25: We have crossed the $1 billion run-rate in recurring revenue
$98 $136 $189 $246 $324 $422 $595 $740 $920 $- $200 $400 $600 $800 $1,000 2007 (IPO) 2008 2009 2010 2011 2012 2013 2014 2015 Guidance We have crossed the $1billion run-rate in recurring revenue Consolidated Revenue ($M) 25
Slide 26: Our strategy is to support the full continuum of care
Our strategy is to support the full continuum of care 26 Sources: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group, 2013; Kaiser Family Foundation Medicaid Data; MEDPAC Report, March 2015; IBISWorld Industry Report 62311, January 2015; IBISWorld Indus
Slide 27: Our total addressable market is massive and growing
Our total addressable market is massive and growing 27 1 Calculated by multiplying athenahealth’s average billing rate of each service offering by ~$940B Hospital Expenditures and ~$590B Physician & Clinical Services, Centers for Medicare & Medicaid Services, Office of the Actuary, National Health S
Slide 28: Mostly software or mostly services
Many folks still think of what we do as mostly software or mostly services Cost to operate & deliver services 28 Cost to license, implement & maintain software vs.
Slide 29: Both has created a powerful business model
The fact that we are both has created a powerful business model 29 SERVICE NETWORK KNOWLEDGE
Slide 30: Service, knowledge and network metrics
SERVICE 19M eligibility checks 35M claims posted 13M patient messages 90K live operator calls 115K denials managed 5M faxes received and posted 259M transactions Service metrics shown as a per month avg. KNOWLEDGE 40M claims rules 1705 clinical rules 103 quality programs Drug drug interactions Formu
Slide 31: Our business model makes us an evolution over SaaS
31 >$1.00 Per dollar of recurring revenue Customer Acquisition Cost ~$0.60 Per dollar of recurring revenue ~80% Gross Margin % 63% 2015 guidance >1 Year Payback Period <1 Year 5% - 15% Annual Attrition (Churn Rate) <5% ~8x Based on 10% churn Lifetime Value/ Customer Acquisition Cost1 ~21x Based on 5
Slide 32: Our investment philosophy balances growth and profitability
Our investment philosophy balances growth and profitability 32 5% 27% 34% 17% 12% 4% 0% 25% 50% HCIT average athenahealth SaaS average Revenue CAGR (2012 - 2016) Avg. Non-GAAP Operating Margin (2012 - 2016) Source: FactSet HCIT Peers: CERN, QSII, MDRX, MDAS, CPSI SaaS/Tech Peers: CRM, N, JIVE, NOW,
Slide 33: Gross margin reflects our network, knowledge, and service model
Our gross margin reflects our network, knowledge, and service business model 33 29.1% 33.4% 35.8% 39.5% 38.3% 40.2% 63.0% 68.9% 71.6% 78.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Source: FactSet - latest fiscal year gross margin % Pure BPO Pure SaaS Non-GAAP Adjusted Gross Margin
Slide 34: We continuously improve our gross margin
We continuously improve our gross margin while investing in our services 34 70’s1 athenaCollector athenaClinicals Continuum 50’s – 60’s1 20’s or below1 1 Non-GAAP Adjusted Gross Margin, excluding implementation fees and implementation costs
Slide 35: Disciplined with our pricing as we grow
3.0% 3.5% 4.0% 4.5% 5.0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 $6.0 We have been very disciplined with our pricing as we grow the business Business Services Rev
Slide 36: Growing percentage of R&D focused on innovation
0% 4% 8% 12% 16% 2010 2011 2012 2013 2014 2015E C as h R&D as % of R ev e n u e 66% 58% 56% 52% 50% 41% 36 1 R&D Project Categories: C1 (Stability), C2 (Gross Margin and Productivity), C3 (Service Enhancement), C4 ( New Service Development) C1/C2 C3/C4 A growing percentage of our R&D investment is f
Slide 37: General & Administrative costs % of revenue
16.9% 14.9% 12.6% 11.0% 12.9% 13.7% 12.4% 0.0% 5.0% 10.0% 15.0% 20.0% 2009 2010 2011 2012 2013 2014 2015E Geographic expansion and cost to support growth We will aim to scale G&A costs as we move forward General & Administrative costs % of revenue1 37 1 GAAP General & Administrative expenses less st
Slide 38: 2016 guiding principles
38 2016 guiding principles 1 2 3 4 5 Grow athenahealth-branded bookings by 30% over fiscal year 2015 Maintain cost of bookings relative to fiscal year 2015 Improve non-GAAP adjusted gross margin for each service and overall Maintain investment in research and development to support building our cont
Slide 39: Priorities will change over time as we balance growth & profitability
Our priorities will change over time as we balance both growth & profitability 39 TODAY Growth Priority Gross Margin ~63.5% Growth & Innovation Investments ~ Revenue Growth G&A % of Revenue ~12% Operating Margin ~10% Capex Growth < Revenue Growth APPROACH Growth Priority Improve Gross Margin Net ~50
Slide 40: Strong revenue visibility into next year
83% 7% 6% 4% Existing Client Base (as of Sep 2015), less attrition* At Risk - To be implemented in Q4 2015 and FY 2016 At Risk - To be sold in Q4 2015 and FY 2016 Pharma Client Base We continue to enjoy strong revenue visibility into next year 40 *Includes Epocrates subscription revenue and third-pa
Slide 41: Fiscal year 2016 expectations
We are introducing our fiscal year 2016 growth and profitability expectations 41 Fiscal Year 2016 Expectations GAAP Total Revenue $1,085 - $1,115 million Non-GAAP Adjusted Gross Margin1 63.5% - 64.5% Non-GAAP Adjusted Operating Income1 $120 - $135 million Non-GAAP Adjusted Net Income per Diluted Sha
Slide 42: Network Hitting a Tipping Point
Network Hitting a Tipping Point Doran Robinson athenaCoordinator
Slide 43: Unique insight drives development of our network
43 Unique insight drives the development of our nationally connected network Critical network mass is enabling us to unlock new potential within core services Market shifts are beginning to erode the enterprise software box-out threat 1 2 3
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Slide 45: Lab Pharmacy Cardio Imaging Hospital Rehab Home
45 Lab Pharmacy Cardio Imaging Hospital Rehab Home
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Slide 47: Paper, fax, electronic
PAPER $$$ FAX $$ ELECTRONIC $
Slide 48: Our footprint approaches a billion quarterly electronic transactions
- 50 100 150 200 250 300 0 100 200 300 400 500 600 700 800 900 Q 1 201 3 Q 2 201 3 Q 3 201 3 Q 4 2 0 1 3 Q 1 201 4 Q 2 201 4 Q 3 201 4 Q 4 201 4 Q 1 201 5 Q 2 201 5 Q 3 201 5 Electronic Transactions (Millions) Total Transaction Endpoints (Thousands) Our footprint is now massive as we approach a bill
Slide 49: Unique insight drives development of our network
49 Unique insight drives the development of our nationally connected network Critical network mass is enabling us to unlock new potential within core services Market shifts are beginning to erode the enterprise software box-out threat 1 2 3
Slide 50: Institutions across health care are seeing the value in open
50 Institutions across health care are seeing the value in open.
Slide 51: The industry is following
athenahealt! The industry is followin a. brightree ae sunquest™ sw instru MEDH@ST - Ben) ; / aprima CAREMARK MCKESSON
Slide 52: We have opened faster than software peers
We have opened faster than software peers in the market
Slide 53: This helps athenahealth
…and overall, this helps athenahealth Scored as easiest vendor to connect to Recognized as the best-value connection for improving patient care 53 “Interoperability 2015: Are we lifting together?," page 4, September 2015. © 2015 KLAS Enterprises, LLC. All rights reserved. www.KLASresearch.com
Slide 54: Tools to create an integrated experience for the physician
We are using these tools to create an integrated experience for the physician
Slide 55: An integrated experience follows the patient
An integrated experience follows the patient 55
Slide 56: An integrated experience follows the patient
View in Cerner Admitted on 08/25/15 at 6:00PM by Dr. Grace Howser View in Cerner An integrated experience follows the patient
Slide 57: An integrated experience follows the patient
57 view in Cerner An integrated experience follows the patient
Slide 58: An integrated experience follows the patient
View in Cerner Admitted on 08/25/15 at 6:00PM by Dr. Grace Howser View in Cerner Cerner Viewer An integrated experience follows the patient
Slide 59: Unique insight drives development of our network
59 Unique insight drives the development of our nationally connected network Critical network mass is enabling us to unlock new potential within core services Market shifts are beginning to erode the enterprise software box-out threat 1 2 3
Slide 60: Geographic density of our provider network is growing
Geographic density of our provider network is growing Source: athenaNet client location growth from 2000 to 2015
Slide 61: Patients shared across clients are reaching critical mass
0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Patient Overlap by Quarter Patient Records Overlap Patient Overlap = % of patient records for which the patient is present in multiple contexts Unique patient is identifi
Slide 62: Key shared utilities across the network
Next year, we are building and deploying key shared utilities across the network 62 Sarah Network Registration Alerting Network Scheduling 4 3 Longitudinal Patient Record 5 Secure Text 1 2
Slide 63: Network Expanding Across the Continuum
Network Expanding Across the Continuum Kyle Armbrester Chief Product Officer
Slide 64: Our strategy: The full continuum of care
64 Primary Care Specialists Convenient Care Hospital Post-Acute Care Long-Term Care Home Our strategy: The full continuum of care
Slide 65: Build or buy across the continuum
65 Primary Care Specialists Convenient Care Hospital Post-Acute Care Long-Term Care Home Epocrates Population Health athenaCoordinator Build or Buy More Disruption Please Partners
Slide 66: Track record and accelerating development
We have a great track record and are accelerating our development Generally available: 2000 2006 2010 2015 2015 1997 2004 2008 2013 2014 2015 Started development: Ambulatory Continuum Expansion 2015 2015 2015 66
Slide 67: Rapid progress on Continuum expansion
We have made rapid progress in less than a year on our Continuum expansion 67 • Completed 2 M&A deals • Clinicals development begins • Collector plan approved • First new hospital joined the network • First Collector clients live • Orders & Documentation through athenaNet; ancillaries live on Razor
Slide 68: Speed of expansion derived from network scale
The speed of our expansion is derived from the growth and scale of our network 68 Thousands of bi-directional end-point connections across the continuum via our Coordinator services Facility-related payer rules for 20+ states, and we are already processing 200k + facility claims per month Quality pr
Slide 69: Entering the market from a disruptive position
Entering the market from a disruptive position 69 Critical Access & Community Hospitals < 50 beds Services rural areas Provides 24-hour emergency care Entrepreneurial leadership ✔ ✔ ✔ ✔ ✔
Slide 70: Video
Video
Slide 71: Small hospitals looking for an alternative
These small hospitals and health systems are looking for an alternative 71 2014 Acute Care Wins/Losses By Hospital Size Epic Cerner athenahealth (RazorInsights) Cerner* (Siemens) MEDHOST (HMS) AllScripts Healthland* Evident (CPSI) MEDITECH* McKesson* -80 -60 -40 -20 0 20 40 60 80 100 120 140 160 81
Slide 72: Large expansion opportunity in hospitals
Access and convenience are key to this market, which represents a large expansion opportunity for us 72 Source: 2013 American Hospital Association (AHA) Annual Survey; http://www.aha.org/research/rc/stat-studies/fast-facts.shtml 1Calculated by multiplying athenahealth’s average billing rate by estim
Slide 73: Support the entire continuum of care
73 Our strategy is to support the entire continuum of care There is a large growth opportunity with small to medium hospitals and health systems We are able to move into adjacencies faster than ever because of the growth and scale of our network 1 2 3
Slide 74: Network Fueling Growth
Network Fueling Growth Tim O’Brien Chief Marketing Officer
Slide 75: Ability to drive lead and meeting growth
We have demonstrated the ability to drive lead and meeting growth 75 57k 76k 89k 105k 129k 6k 8k 9k 12k 15k - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2012 2013 2014 2015F 2016B Leads Meetings
Slide 76: Growth framework converts hand-raisers into meetings
Credit our growth framework - which is built to convert hand-raisers into meetings Awareness Leads Prove Value Meetings Bookings Direct response advertising: create compelling content Lead conversion: enhance speed to follow up Meeting quality: shorten time from request to held 76 Demand Generation
Slide 77: Our network can fuel demand creation
Awareness Leads Prove Value Meetings Bookings Direct response advertising: create compelling content Lead conversion: enhance speed to follow up Meeting quality: shorten time from request to held Our network can fuel demand creation 77 ICD-10 MEANINGFUL USE PQRS
Slide 78: Our network can fuel demand creation
Awareness Leads Prove Value Meetings Bookings Direct response advertising: create compelling content Lead conversion: enhance speed to follow up Meeting quality: shorten time from request to held Our network can fuel demand creation 78
Slide 79: Network and insight will fuel our growth
79 Our network, and the insight it provides, will fuel our growth Reveal existing relationships and benefits for joining our network 3 Feature athenaNet content to drive awareness and demand 1 Engage Epocrates users with network content and lite services 2
Slide 80: 59% of doctors would not recommend medicine to their children
59% Of doctors would not recommend the field of medicine to their own children Source: Jackson Healthcare; 2013 Physician Outlook and Practice Trends http://www.jacksonhealthcare.com/media/191888/2013physiciantrends-void_ebk0513.pdf 80
Slide 81: Use our content to prove there is a better solution
Next, we can use our content to prove there is a better solution 81 Practice Vitals
Slide 82: Network and insight will fuel our growth
82 Our network, and the insight it provides, will fuel our growth Reveal existing relationships and benefits for joining our network 3 Feature athenaNet content to drive awareness and demand 1 Engage Epocrates users with network content and lite services 2
Slide 83: Personalize the experience to increase usage
Personalize the experience to increase usage and engagement 83 From To
Slide 84: Personalize the experience to increase usage
Personalize the experience to increase usage and engagement 84 From To
Slide 85: Connection points into athenaNet
Next, we will build connection points into athenaNet to show benefits of our network ADT ALERTS Jane Smith just checked into the E.R. Click here to receive similar alerts in the future Enable Care Coordination • athenaText • Patient Alerts (ADT) • Referral Tools 85
Slide 86: Lite services benefit physicians and enterprises
These lite services can benefit both physicians and large enterprises • Quality Dashboard • ACO Metrics Distribute population health metrics 86
Slide 87: Non-athena users can see network information
Non-athena users will be able to see everything our network has on their patient Send from an athena provider to a non- athena provider through athenaText Provide Facesheet 87
Slide 88: Engage Epocrates users with network content
88 Engage Epocrates users with network content and lite services 2 Our network, and the insight it provides, will fuel our growth Reveal existing relationships and benefits for joining our network 3 Feature athenaNet content to drive awareness and demand 1
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Slide 90: Let's see how Dr. Costin is connected
LET'S SEE HOW DR. COSTIN IS CONNECTED
Slide 91: Providers
30 PROVIDERS PRINCETON oncom MEDICAL @ GROUP rs) LIKELY KNOW 103 OF OUR PROVIDERS HOW WE'RE LINKED | 23 EXTERNAL CONNECTIONS
Slide 92: Detail
DETAIL vy YOU MIGHT KNOW YOU KNOW DR. MARC FEINGOLD THOMAS. ¥ DR. ADAM WAGSHUL v DR. RUTHPOT ¥ DR. ROBERT SPILA DR, SEAN RODDY DR. HARVEY DR. CHARLES SCHOLHAY OR. THOMAS SLAMOVITS VOR. SUMIT SHAH ¥ DR, JULE MIN DR. GARY DILSIO ¥ DR. LEONARD FEINER YOR. BRIAN We JANES LEVINE DR. KENNETH JEW DR. LAN W
Slide 93: Prospects advance through the funnel with network relationships
Prospects advance through the funnel when we highlight their relationships with the network 3 Referral Volume Clients 2 Epocrates 1 Specialty Performance & Trends 5 Network Connections 4 Prospect Awareness Leads Prove Value Meetings Bookings 93
Slide 94: Friend a Provider in Clinical Inbox
For current clients we can ‘Friend a Provider’ in Clinical Inbox 94
Slide 95: Network and insight will fuel our growth
95 Our network, and the insight it provides, will fuel our growth Reveal existing relationships and benefits for joining our network 3 Feature athenaNet content to drive awareness and demand 1 Engage Epocrates users with network content and lite services 2
Slide 96: Presentation Break
Presentation Break
Slide 97: Client Panel Discussion
Stephen Kahane, M.D., M.S. Client Organization Client Panel Discussion
Slide 98: Client Panel
Client Panel 98 David Dill President & Chief Operating Officer LifePoint Health Michael Nochomovitz, M.D. SVP, Chief Clinical Integration & Network Development Officer NewYork-Presbyterian David Morlock Chief Executive Officer University of Toledo Medical Center Moderator Stephen Kahane, M.D., M.S.,
Slide 99: Closing Remarks
Closing Remarks Jonathan Bush Chairman & CEO
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Slide 106: CareSync
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Slide 109: Management Q&A
Management Q&A
Slide 110: Please join us
Please join us: • Lunch with Management • Nerve Center Tour
Slide 111: Thank You
Thank You
Slide 112: Appendix
Appendix
Slide 113: Additional points of interest and guidance for fiscal year 2016
Additional points of interest and guidance for fiscal year 2016 113 It is best to assess our business on a year-over-year basis as there is typically an increase in expense levels during Q1 versus Q4 • FICA payroll tax reset, benefit rate changes, trade shows, etc. The number of working days varies
Slide 114: Use of Non-GAAP financial measures
Use of Non-GAAP financial measures In our earnings releases, conference calls, slide presentations, or webcasts, we may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed,
Slide 115: 2015 Guidance
2015 Guidance
Slide 116: Non-GAAP reconciliation for fiscal year 2015 expectations
Non-GAAP reconciliation for fiscal year 2015 expectations 116 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted Gross Margin LOW HIGH Total revenue 905.0$ 925.0$ Direct operating expense 364.1 362.4 Total revenue less direct operating expense 540.9$
Slide 117: Non-GAAP reconciliation for fiscal year 2015 expectations
Non-GAAP reconciliation for fiscal year 2015 expectations 117 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted Operating Income LOW HIGH Total revenue 905.0$ 925.0$ GAAP net loss (8.0) (3.8) Add: (Benefit from) provision for income taxes (4.3) (1.8)
Slide 118: Non-GAAP reconciliation for fiscal year 2015 expectations
Non-GAAP reconciliation for fiscal year 2015 expectations 118 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted Net Income and Non-GAAP Adjusted EPS LOW HIGH GAAP net loss (8.0)$ (3.8)$ Add: Stock-based compensation expense 61.4 61.4 Add: Amortizatio
Slide 119: Non-GAAP reconciliation for fiscal year 2015 expectations
Non-GAAP reconciliation for fiscal year 2015 expectations 119 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted EPS LOW HIGH GAAP net loss per share - diluted (0.20)$ (0.09)$ Add: Stock-based compensation expense 1.53 1.53 Add: Amortization of capita
Slide 120: 2016 Guidance
2016 Guidance
Slide 121: Non-GAAP reconciliation for fiscal year 2016 expectations
Non-GAAP reconciliation for fiscal year 2016 expectations 121 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted Gross Margin LOW HIGH Total revenue 1,085.0$ 1,115.0$ Direct operating expense 423.4 423.2 Total revenue less direct operating expense 661
Slide 122: Non-GAAP reconciliation for fiscal year 2016 expectations
Non-GAAP reconciliation for fiscal year 2016 expectations 122 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted Operating Income LOW HIGH Total revenue 1,085.0$ 1,115.0$ GAAP net income 10.8 19.5 Add: Provision for income taxes 7.6 12.9 Add: Total ot
Slide 123: Non-GAAP reconciliation for fiscal year 2016 expectations
Non-GAAP reconciliation for fiscal year 2016 expectations 123 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted Net Income and Non-GAAP Adjusted EPS LOW HIGH GAAP net income 10.8$ 19.5$ Add: Stock-based compensation expense 69.4 69.4 Add: Amortizatio
Slide 124: Non-GAAP reconciliation for fiscal year 2016 expectations
Non-GAAP reconciliation for fiscal year 2016 expectations 124 Please note that the figures presented above may not sum exactly due to rounding. Non-GAAP Adjusted EPS LOW HIGH GAAP net income per share - diluted 0.26$ 0.47$ Add: Stock-based compensation expense 1.66 1.66 Add: Amortization of capitali