ExactTarget fka ET

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ExactTarget Announces Fourth Quarter and Full Year 2012 Results


ExactTarget (NYSE:ET), a leading global provider of cross-channel digital marketing software-as-a-service solutions, announced results today for its fourth quarter and full year ended December 31, 2012.

"ExactTarget's record fourth quarter and full-year revenue reinforce our position as the largest pure play marketing SaaS provider in the world," said Scott Dorsey, ExactTarget chairman, chief executive officer and co-founder. "With strong customer response to our new innovations and recent acquisitions, we have become the digital marketing platform of choice and positioned ourselves for another strong year of growth."

Fourth Quarter 2012 Financial Highlights:

Three Months Ended December 31, 2012:

Revenue: $84.2 million, a 42 percent increase compared to the fourth quarter of 2011. Non-U.S. revenue was $15.6 million, a 47 percent increase compared to the fourth quarter of 2011.
Adjusted Revenue: $85.8 million, a 44 percent increase compared to the fourth quarter of 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting.
Recurring Subscription Revenue: $66.7 million (excludes $2.1 million of revenue related to utilization above the contracted level), a 46 percent increase compared to the fourth quarter of 2011. Adjusted recurring subscription revenue was $68.2 million, a 49 percent increase compared to the fourth quarter of 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting.
Net (Loss) / Income: $(13.0) million compared to $(6.1) million in the fourth quarter of 2011. Net (Loss) / Income attributable to common stockholders in the fourth quarter of 2012 was $(0.19) per share on a basic and diluted basis, compared to $(0.68) per share on a basic and diluted basis in the fourth quarter of 2011.
Adjusted Net (Loss) / Income: $(6.8) million, or $(0.10) per share on a basic and diluted basis, compared to $(3.8) million, or $(0.42) per share on a basic and diluted basis, in the fourth quarter of 2011.
Operating Cash Flow: $8.0 million compared to $(4.6) million in the fourth quarter of 2011.
Adjusted EBITDA: $(0.5) million compared to $0.8 million in the fourth quarter of 2011.

Twelve Months Ended December 31, 2012:

Revenue: $292.3 million, a 41 percent increase compared to 2011. Non-U.S. revenue was $53.1 million, an 84 percent increase compared to 2011.
Adjusted Revenue: $293.8 million, a 42 percent increase compared to 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting.
Recurring Subscription Revenue: $228.7 million (excludes $5.5 million of revenue related to utilization above the contracted level), a 42 percent increase compared to 2011. Adjusted recurring subscription revenue was $230.2 million, a 43 percent increase compared to 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting.
Net (Loss) / Income: $(21.0) million compared to $(35.4) million in 2011. Net (Loss) / Income attributable to common stockholders in 2012 was $(0.39) per share on a basic and diluted basis, compared to $(4.05) per share on a basic and diluted basis in 2011.
Adjusted Net (Loss) / Income: $(6.2) million, or $(0.11) per share on a basic and diluted basis, compared to $(27.3) million, or $(3.12) per share on a basic and diluted basis, in 2011.
Operating Cash Flow: $22.7 million compared to $(2.8) million in 2011.
Adjusted EBITDA: $15.7 million compared to $(0.1) million in 2011.

Recent Business Highlights:

Completed the acquisition of privately-held business-to-business marketing automation provider Pardot, expanding ExactTarget's product suite with Pardot's solution to create, deploy and manage online lead nurturing campaigns through integrations with salesforce.com, Microsoft Dynamics CRM, NetSuite and SugarCRM.
Completed the acquisition of privately-held Web personalization provider iGoDigital, expanding ExactTarget's product suite with iGoDigital's advanced product recommendations solutions and predictive analytics to power cross-channel personalization and optimization.
Expanded the company's mobile marketing suite with the launch of MobilePush, an enterprise application to power data-driven push notifications to apps on smartphones and tablets.
Expanded its global multi-lingual enterprise digital marking platform with the addition of a French-Canadian user interface, making its email, mobile, social media and data management applications now available in English, Brazilian Portuguese, German, French and French-Canadian.
Expanded the company's global footprint with new offices in Paris and Stockholm, bringing the number of non-U.S. offices to eight (Australia (two), Brazil, Canada, France, Germany, United Kingdom and Sweden).
Hosted three client conferences in the fourth quarter with more than 4,000 attendees at Connections 2012, and strong attendance at Connections UK and Pardot's Elevate Conference.

Business Outlook:

As of February 21, 2013, ExactTarget is issuing guidance for its first quarter of 2013 and full-year 2013.

First Quarter 2013:
Adjusted Revenue: expected to be $87.0 million to $88.0 million, excluding the impact of adjusting deferred revenue to fair value under purchase accounting.
Adjusted Net (Loss) / Income: expected to be $(6.0) million to $(7.0) million. Adjusted Net (Loss) / Income excludes the effects of stock-based compensation expense, amortization of intangibles, and the impact of adjusting deferred revenue to fair value under purchase accounting.
Adjusted Net (Loss) / Income per Share: expected to be $(0.09) per share to $(0.10) per share on a basic and diluted basis assuming weighted average shares outstanding of approximately 69 million shares.
Full Year 2013:
Adjusted Revenue: expected to be $370.0 million to $374.0 million, excluding the impact of adjusting deferred revenue to fair value under purchase accounting.
Adjusted Net (Loss) / Income: expected to be $(20.0) million to $(22.0) million. Adjusted Net (Loss) / Income excludes the effects of stock-based compensation expense, amortization of intangibles, and the impact of adjusting deferred revenue to fair value under purchase accounting.
Adjusted Net (Loss) / Income per Share: expected to be $(0.29) per share to $(0.31) per share on a basic and diluted basis. This assumes weighted average shares outstanding of approximately 70 million shares.