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TheStreet Open House

Imperva Announces Third Quarter 2012 Financial Results

Stock quotes in this article: IMPV

Imperva, Inc. (NYSE: IMPV), a pioneer and leader of a new category of business security solutions for critical applications and high-value data in the data center, today announced financial results for the third quarter ended September 30, 2012.

“Our ability to execute across all verticals and geographies drove our strong performance in the quarter as we further extended our leadership position in the business security market,” stated Shlomo Kramer, President and Chief Executive Officer of Imperva. “The third quarter was highlighted by continued strong growth of subscriptions along with our ability to achieve non-GAAP operating profitability for the first time as a public company, as we further leverage the investments made in our global sales and research and development infrastructure. The combination of a healthy pipeline of business and expanding product line, positions Imperva to maintain the momentum for the remainder of the year.”

Third Quarter 2012 Financial Highlights

  • Revenue: Total revenue for the third quarter of 2012 was $26.3 million, an increase of 33% compared to $19.7 million in the third quarter of 2011. Within total revenue, product revenue was $14.7 million, an increase of 28% compared to the third quarter of 2011. Services revenue increased 41% year over year to $11.6 million and accounted for 44% of total revenue, up from 42% in the third quarter of 2011. Within services revenue, overall subscription revenue grew 231%, to $1.3 million, compared to the third quarter of 2011.
  • Operating Profit (Loss): Operating loss as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $(1.7) million for the third quarter compared to a loss of $(2.6) million during the third quarter in 2011. GAAP results included stock-based compensation expense of $1.8 million for the third quarter of 2012 and $0.6 million for the third quarter of 2011. Non-GAAP operating profit for the third quarter was $0.1 million, compared to a loss of $(2.0) million during the same period in 2011, excluding the above mentioned charges.
  • Net Profit (Loss): GAAP net loss attributable to Imperva stockholders for the third quarter was $(1.9) million, or $(0.08) per share based on 23.2 million weighted average diluted shares outstanding. This compares to GAAP net loss attributable to Imperva stockholders of $(2.7) million, or $(0.48) per share based on 5.6 million weighted average shares outstanding in the prior-year period.Non-GAAP net loss attributable to Imperva stockholders for the third quarter of 2012 was $(97,000), or $(0.00) per share based on 23.2 million weighted average diluted shares outstanding, excluding the above mentioned charges. This compares to non-GAAP net loss attributable to Imperva stockholders of $(2.1) million, or $(0.13) per share based on 16.3 million weighted average diluted shares outstanding in the prior year period.Both GAAP and non-GAAP loss per share attributable to Imperva stockholders for the third quarter ended September 30, 2012 adjust for the loss attributable to Imperva’s non controlling interest in Incapsula. A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
  • Balance Sheet: As of September 30, 2012, Imperva had cash, cash equivalents and investments of $101.7 million.

Third Quarter 2012 Operating Highlights

  • During the third quarter of 2012, Imperva booked 70 deals with a value over $100,000, up 30% compared to the third quarter of last year. During the nine months ended September 30, 2012, the company booked 183 deals with a value over $100,000, an increase of 34% year over year.
  • Total deferred revenue of $38.3 million was up 50% compared to $25.6 million at September 30, 2011.
  • During the third quarter of 2012, Imperva added 138 new customers, up 33% compared to the third quarter of last year. During the nine months ended September 30, 2012, the company added 354 new customers, an increase of 29% year over year. Imperva now has over 2,000 customers in more than 60 countries around the world.
  • Imperva announced a collaboration with Cisco to achieve interoperability between Imperva’s SecureSphere Web Application Firewall (WAF) and Cisco’s Nexus 1110/1010 virtual service appliances to improve application security, ease management and reduce operational costs.
  • Imperva announced that it had earned the Government Technology Research Alliance (GTRA) Insider Threat Roundtable Award based on cutting edge demonstrations, presentations and best in class government technology solutions.

Business Outlook

The following forward-looking statements reflect expectations as of November 1, 2012. Results may be materially different and could be affected by the factors detailed in this press release and in recent Imperva SEC filings.

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