Exceeds Prior Guidance for Total Revenue and Profitability
REDWOOD SHORES, Calif.--(BUSINESS WIRE)--Oct. 19, 2017--
Imperva,
Inc. (NASDAQ:IMPV), committed to protecting business-critical data
and applications in the cloud and on-premises, today announced
preliminary financial results for the third quarter ended September 30,
2017 that were above the high end of the guidance ranges for both total
revenue and profitability previously provided on July 27, 2017.
Based on preliminary financial information, Imperva currently expects to
report total revenue for the third quarter of 2017 in the range of $83.5
million to $84.0 million compared to the company’s prior guidance of
total revenue in the range of $81.0 million to $83.0 million.
Imperva also expects to report non-GAAP operating income in the third
quarter of 2017 in the range of $10.5 million to $11.0 million, and
expects to report non-GAAP net income per share in the range of $0.29 to
$0.32 using approximately 34.4 million weighted average shares, based on
preliminary financial information. This is compared to the company’s
prior guidance of a non-GAAP operating income in the range of $8.3
million to $9.4 million and non-GAAP net income per share in the range
of $0.22 to $0.26. Preliminary non-GAAP results exclude stock-based
compensation and amortization of purchased intangibles. Imperva will
provide detail on stock-based compensation and amortization of purchased
intangibles on its third quarter earnings conference call scheduled for
November 8, 2017.
Third quarter 2017 preliminary results are subject to change based on
the completion of the company’s normal quarter-end review process.
In addition, Charles Giancarlo has notified the Company of his
resignation from Imperva’s Board of Directors, effective October 17,
2017. On August 24, 2017, Mr. Giancarlo was named Chief Executive
Officer and a member of the Board of Directors of Pure Storage.
“I made the decision to part with my responsibilities with Imperva
because of my new role as CEO and board member of Pure Storage. It has
been an honor to serve on Imperva’s Board of Directors. I’ve enjoyed my
time working with the company, and wish them continued success,” stated
Mr. Giancarlo.
“We were pleased with our third quarter results which were driven by
Imperva’s best-of-breed discovery, protection and compliance solutions,”
stated Chris Hylen, President and Chief Executive Officer of Imperva.
“In addition, I wanted to thank Charlie for for all of his contributions
and wish him well in his new role.”
Non-GAAP Financial Measures
This press release contains forward-looking non-GAAP measures of
financial performance, including expected non-GAAP operating loss and
expected non-GAAP net loss per share. The presentation of these
forward-looking non-GAAP financial measures is not intended to be
considered in isolation from, as a substitute for, or superior to,
financial information prepared and presented in accordance with GAAP,
and may be different from the forward-looking non-GAAP financial
measures used by other companies. In addition, these forward-looking
non-GAAP measures have limitations in that they do not reflect all of
the amounts associated with results of operations as determined in
accordance with GAAP. These forward-looking non-GAAP financial measures
exclude stock-based compensation and amortization of purchased
intangibles.
Imperva believes it is appropriate to exclude or give effect to certain
items for the following reasons:
Stock-Based Compensation: When evaluating the performance of its
consolidated results, Imperva does not consider stock-based compensation
charges. Likewise, the Imperva management team excludes stock-based
compensation expense from its operating plans. In contrast,
the Imperva management team is held accountable for cash-based
compensation and such amounts are included in its operating plans.
Further, when considering the impact of equity award
grants, Imperva places a greater emphasis on overall stockholder
dilution rather than the accounting charges associated with such grants.
Imperva excludes stock-based compensation expense from its non-GAAP
financial measures primarily because it does not consider it part of
ongoing operating results when assessing the performance of its
business, and the exclusion of the expense facilitates the comparison of
results and business outlook for future periods with results for prior
periods in order to better understand the long term performance of its
business.
Amortization of Purchased Intangibles. When analyzing the
operating performance of an acquired entity, Imperva’s management
focuses on the total return provided by the investment (i.e., operating
profit generated from the acquired entity as compared to the purchase
price paid) without taking into consideration any allocations made for
accounting purposes. Because the purchase price for an acquisition
necessarily reflects the accounting value assigned to intangible assets
(including acquired technology and goodwill), when analyzing the
operating performance of an acquisition in subsequent periods, Imperva’s
management excludes the GAAP impact of acquired intangible assets to its
financial results. Imperva believes that such an approach is useful in
understanding the long-term return provided by an acquisition and that
investors benefit from a supplemental non-GAAP financial measure that
excludes the accounting expense associated with acquired intangible
assets.
In addition, in accordance with GAAP, Imperva generally recognizes
expenses for internally-developed intangible assets as they are incurred
until technological feasibility is reached, notwithstanding the
potential future benefit such assets may provide. Unlike
internally-developed intangible assets, however, and also in accordance
with GAAP, Imperva generally capitalizes the cost of acquired intangible
assets and recognizes that cost as an expense over the useful lives of
the assets acquired (other than goodwill, which is not amortized, as
required under GAAP). As a result of their GAAP treatment, there is an
inherent lack of comparability between the financial performance of
internally-developed intangible assets and acquired intangible assets.
Accordingly, Imperva believes it is useful to provide, as a supplement
to its GAAP operating results, a non-GAAP financial measure that
excludes the amortization of acquired intangibles.
Imperva believes that these non-GAAP financial measures provide
meaningful supplemental information regarding the performance of Imperva
by excluding certain items that may not be indicative of the company’s
core business, operating results or future outlook. Imperva management
uses these non-GAAP financial measures in assessing operating results of
Imperva, as well as when planning, forecasting and analyzing future
periods. These non-GAAP financial measures also facilitate comparisons
of the performance of Imperva to prior periods.
Imperva has not provided a reconciliation of these forward-looking
non-GAAP financial measures to their comparable GAAP financial measures
because it could not produce the corresponding GAAP financial measures
by the date of this press release without unreasonable effort. GAAP
results and a detailed reconciliation of each non-GAAP financial measure
to the most directly comparable GAAP financial measure will be presented
in connection with Imperva’s press release reporting full financial
results for the quarter ended September 30, 2017 scheduled to be
released after the close of the market on November 8, 2017.
Forward-Looking Statements
This press release contains forward-looking statements, including
without limitation those regarding the third quarter 2017 financial
results that Imperva expects to announce. These forward-looking
statements are subject to material risks and uncertainties that may
cause actual results to differ substantially from expectations.
Investors should consider important risk factors, which include: that
the financial results presented in this press release are preliminary
and subject to Imperva’s completion of the financial closing and review
process for the third quarter of 2017. Investors should consider
important risk factors, which include: demand for the company’s cyber
security solutions may not increase or may decrease, including as a
result of global macroeconomic conditions and other economic conditions
that may reduce enterprise software or security spending generally or
customer perceptions about the necessity or reliability of solutions
such as ours; the company’s sales expectations for large customers may
not materialize in a particular quarter or at all; the company may not
timely introduce new products or services or versions of its products or
services and such products or services may not be accepted by the market
or may have defects, errors, outages or failures; competitors may be
perceived by customers to offer greater value or to be better positioned
to help handle cyber security threats and protect their businesses from
major risk; existing customers may focus their additional cyber security
spending on other technologies or addressing other risks; the company’s
growth may be lower than anticipated; the markets that the company
addresses may not grow as anticipated; the company may not be able to
achieve the anticipated operational efficiencies and other benefits of
the restructuring initiative; risks attendant to completion of the
financial closing and review process; and other risks detailed under the
caption “Risk Factors” in the company’s Form 10-Q filed with the
Securities and Exchange Commission, or the SEC, on August 3, 2017 and
the company’s other SEC filings. You can obtain copies of the company’s
SEC filings on the SEC’s website at www.sec.gov.
The foregoing information represents the company’s outlook only as of
the date of this press release, and Imperva undertakes no obligation to
update or revise any forward-looking statements, whether as a result of
new information, new developments or otherwise.
About Imperva
Imperva®
(NASDAQ:IMPV) is a leading provider of cyber security solutions that
protect business-critical data and applications. The company’s SecureSphere,
CounterBreach,
Incapsula
and Camouflage
product lines enable organizations to discover assets and risks, protect
information wherever it lives – in the cloud and on-premises – and
comply with regulations. The Imperva
Defense Center, a research team comprised of some of the world’s
leading experts in data and application security, continually enhances
Imperva products with up-to-the-minute threat intelligence, and
publishes reports that provide insight and guidance on the latest
threats and how to mitigate them. Imperva is headquartered in Redwood
Shores, California. Learn more: www.imperva.com,
our blog,
on Twitter.
© 2017 Imperva, Inc. All rights reserved. Imperva, the Imperva logo,
SecureSphere, CounterBreach, Incapsula, and Camouflage along with its
design are trademarks of Imperva, Inc. and its subsidiaries.

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Source: Imperva, Inc.
Imperva
Investor Relations:
Seth Potter, 646-277-1230
IR@imperva.com
Seth.Potter@icrinc.com