ACTIVE Network Reports Fourth Quarter and Fiscal Year 2012 Financial Results

  ACTIVE Network Reports Fourth Quarter and Fiscal Year 2012 Financial Results

  *Fourth Quarter Revenue Increases 23% to $93.7 Million
  *2012 Revenue Increases 24% to $418.9 Million
  *2012 Registrations Up 12% and Revenue Per Registration Up 8%
  *Reaffirming Full Year 2013 Guidance

Business Wire

SAN DIEGO -- February 14, 2013

ACTIVE Network (NYSE: ACTV), the leader in cloud-based Activity and
Participant Management™ (APM) solutions, today announced its financial results
for the fourth quarter and fiscal year ended December 31, 2012.

Q4 2012 Financial Highlights:

(All comparisons are made to the fourth quarter of 2011)

  *Total net revenue up 23% to $93.7 million.
  *Technology revenue increased 25% and constituted 88%, or $82.0 million, of
    total net revenue.
  *Net registration revenue increased 20% to $55.8 million with the number of
    registrations up 7% and the revenue per registration up 13%.
  *Marketing services revenue constituted 12%, or $11.6 million, of total net
    revenue.
  *Net loss was $14.3 million compared to a net loss of $8.5 million.
  *Adjusted EBITDA, a non-GAAP financial measure, was $5.9 million up from
    $0.4 million in 2011 (Adjusted EBITDA in 2011 included $1.9 million of
    severance costs associated with the acquisition of StarCite).

Fiscal Year 2012 Financial Highlights:

(All comparisons are made to fiscal year 2011)

  *Total net revenue up 24% to $418.9 million.
  *Technology revenue increased 28% and constituted 88%, or $370.5 million,
    of total net revenue.
  *Net registration revenue increased 21% to $275.8 million with the number
    of registrations up 12% and the revenue per registration up 8%.
  *Approximately 55,000 organizations utilized the Company’s technology
    solutions, up 7%.
  *Marketing services revenue constituted 12%, or $48.4 million, of total net
    revenue.
  *Net loss was $43.0 million compared to a net loss of $27.1 million.
  *Adjusted EBITDA, a non-GAAP financial measure, was $38.4 million.
    Excluding the impact of business combination accounting rules related to
    deferred revenue, Adjusted EBITDA was$50.8 million.

“In 2012, we achieved the key technology milestones we established at the
beginning of the year. Our first Hunting and Fishing customer went live on our
ActiveWorks® platform, we made strong progress in transitioning our Endurance
customers onto ActiveWorks®, and we delivered on our data center consolidation
targets. We continue to drive innovation and adoption of our horizontal
ActiveWorks® platform,” commented Executive Chairman of ACTIVE Network, Dave
Alberga.

“We delivered 23% revenue growth in the fourth quarter and 24% for the full
year 2012,” added Matt Landa, CEO of ACTIVE Network. “In the fourth quarter,
our cross-selling efforts gained momentum as we brought in a number of Fortune
500 customers that now use our combined Strategic Meetings Management and
Conference solution. We generated positive operating cash flow of $27 million
and ended the year with a strong balance sheet. As we enter 2013, I am excited
about our leading market position and our ability to capitalize on new
opportunities. During the year, we will continue to make targeted investments
in our sales capabilities to drive increased adoption of our APM technology.”

Q4 2012 Key Business Highlights

  *Marquee customer highlights included wins from City of Santa Monica, San
    Antonio YMCA, and Sun Valley Resort and strong technology successes with
    Loews Hotels and Nestlè.
  *ACTIVE launchedRegistration Protector in partnership with Allianz Global
    to protect registration fees for both event organizers and participants
    when participants can’t show up on race day.
  *ACTIVE Access, a newenhanced developer center,brought together all
    aspects of ACTIVE Network's distribution offerings in a single,
    user-friendly site, developer.active.com.
  *Internationally, ACTIVE expanded its footprint announcing that it has
    become the exclusive technology partner for RUN Ireland, the largest
    source for running events in that region.
  *We extended our ActiveWorks Endurance platform to Australia in October and
    are experiencing strong initial adoption.

Financial Outlook

First Quarter 2013 - For the first quarter of 2013, ACTIVE Network expects
total revenue to be in the range of $102 million to $107 million.
Registrations are expected to grow approximately 2% to 7% and revenue per
registration is expected to grow approximately 7% to 9% compared to the same
period in the prior year. The Company expects Adjusted EBITDA in the range of
$2 million to $5 million. The Company expects a net loss of $21 million to $17
million.

Full Year 2013 - Active Network reiterated financial guidance for full year
2013. Total revenue is expected to be in the range of $470 million to $480
million and Adjusted EBITDA is expected to be in the range of $50 million to
$54 million. The Company expects a net loss of $38 million to $31 million.

“Our fourth quarter results were in-line with our guidance - as registrations,
one of our main drivers, accelerated 7% and revenue per registration grew 13%
from the prior year period,” said Scott Mendel, CFO of ACTIVE Network. “During
2012, approximately 55,000 organizations used our technology solutions to
manage their events and activities, up 7% over 2011.”

Conference Call Information

ACTIVE Network will host a conference call to discuss fourth quarter and
fiscal year 2012 results today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific
Time). The conference call dial-in number is (800) 573-4840 for domestic
participants and (617) 224-4326 for international participants. A live webcast
of the conference call will also be available and can be accessed within the
investor relations section of theACTIVE Networkcorporate website
at:http://investors.ACTIVEnetwork.com.

A replay of the call will be available starting at 6:30 p.m. Eastern Time
(3:30 p.m. Pacific Time) on February 14, 2013 through 11:59 p.m. Eastern Time
(8:59 p.m. Pacific Time) on February 21, 2013. To listen to the replay, dial
(888) 286-8010 or (617) 801-6888 outside of the United States and use the
passcode 38594946. The replay will also be available via webcast at:
http://investors.activenetwork.com/.

About ACTIVE Network

ACTIVE Network (NYSE: ACTV) is on a mission to make the world a more active
place. With deep expertise in Activity and Participant Management™ (APM), our
ACTIVE Works® cloud technology helps organizations transform and grow their
businesses. We do this through technology solutions that power the world’s
activities, as well as online destinations such as ACTIVE.com® that connect
people with the things they love to do. Serving over 50,000 global business
customers and driving over 80 million transactions annually, we help
organizations get participants, manage their events and build communities.
ACTIVE Network is headquartered in San Diego, California and has over 30
offices worldwide. Learn more at ACTIVEnetwork.com or ACTIVE.com and engage
with us on Twitter @ACTIVEnetwork, @ACTIVE and on Facebook.

Note With Respect to Non-GAAP Financial Measures

In addition to using GAAP financial results, the Company's management measures
and reports non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP
net income (loss) and Non-GAAP net income (loss) per share. The most directly
comparable GAAP financial results for these non-GAAP financial measures are
Net income (loss), Net income (loss) and Net income (loss) per share,
respectively. Management uses these non-GAAP financial measures to evaluate
the Company's performance and operations. Management also uses these non-GAAP
financial measures for business planning, to evaluate acquisition
opportunities and as a measurement to create incentives and to compensate the
Company's management team. In addition, management believes the exclusion or
inclusion of certain amounts in calculating these non-GAAP financial measures
can provide a useful measure to investors for period-to-period comparisons.
These non-GAAP financial measures, however, should be used in addition to, and
in conjunction with, the Company's financial results presented in accordance
with GAAP. The Company strongly encourages investors to review its financial
statements in their entirety and to not rely on any single financial measure.
Because non-GAAP financial measures are not standardized, it may not be
possible to compare the Company's results with other companies' non-GAAP
financial measures having the same or similar names. Please see Reconciliation
of GAAP to Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP
financial measures.

Forward-Looking Statements

The Active Network, Inc. cautions you that the statements included in this
press release that are not a description of historical facts are
forward-looking statements within the meaning of the federal securities laws.
Any such statements are subject to substantial risks and uncertainties,
including the Company's ability to generate revenue and control expenses in
order to achieve and maintain profitability, the Company's ability to maintain
an adequate rate of growth, including growing its registrations and revenue
from registrations, and the Company's ability to successfully manage its
acquisitions and investments in businesses, applications and technologies, as
well as the other risks detailed from time to time in the reports it files
with the Securities and Exchange Commission. As a result of these risks and
uncertainties, the Company's actual results may differ materially from those
expressed in any forward-looking statements. You are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. All forward-looking statements are qualified in their entirety by
this cautionary statement and the Company undertakes no obligation to revise
or update this press release to reflect events or circumstances after the date
hereof.

© 2013 The Active Network, Inc. All rights reserved. ACTIVE.com, ACTIVE Works
and StarCite are registered trademarks of The Active Network, Inc. ACTIVE
Network is a trademark of The Active Network, Inc. All other trademarks are
the property of their respective owners.


THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                                                            
                     Three Months Ended              Twelve Months Ended
                     December 31,                    December 31,
                      2012          2011          2012          2011    
Net Revenue:
Technology           $ 82,027        $ 65,478        $ 370,472       $ 290,480
revenue
Marketing             11,645        10,567        48,421        46,910  
services revenue
Total net              93,672          76,045          418,893         337,390
revenue
                                                                     
Cost of net
revenue:
Cost of
technology             42,916          34,976          184,954         144,962
revenue
Cost of
marketing             1,608         1,711         6,865         5,952   
services revenue
Total cost of         44,524        36,687        191,819       150,914 
net revenue
                                                                     
Gross profit           49,148          39,358          227,074         186,476
                                                                     
Operating
expenses:
Sales and              23,629          17,281          97,091          70,251
marketing
Research and           18,454          16,572          81,408          66,753
development
General and            16,615          16,493          65,924          51,126
administrative
Amortization of       5,497         3,872         22,277        14,962  
intangibles
Total operating       64,195        54,218        266,700       203,092 
expenses
                                                                     
Loss from              (15,047 )       (14,860 )       (39,626 )       (16,616 )
operations
                                                                     
Interest income        14              28              87              119
Interest expense       (184    )       (91     )       (664    )       (2,890  )
Other income          (206    )      (123    )      1,157         (14     )
(expense), net
Loss before
provision              (15,423 )       (15,046 )       (39,046 )       (19,401 )
(benefit) for
income taxes
Provision
(benefit) for         (1,082  )      (6,564  )      3,980         (4,074  )
income taxes
Net loss               (14,341 )       (8,482  )       (43,026 )       (15,327 )
Accretion of
redeemable            -             -             -             (11,810 )
convertible
preferred stock
Net loss
attributable to      $ (14,341 )     $ (8,482  )     $ (43,026 )     $ (27,137 )
common
stockholders
                                                                     
Net loss per
share
attributable to
common
stockholders:
Basic and            $ (0.24   )     $ (0.16   )     $ (0.73   )     $ (0.75   )
diluted
                                                                     
Weighted-average
shares used to
compute net loss
per share
attributable to
common
stockholders:
Basic and             60,423        54,109        58,804        36,072  
diluted
                                                                               

THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                             
                                                 December 31,     December 31,
                                                 2012             2011 (1)
                                                 (Unaudited)
Assets
Current assets:
Cash and cash equivalents                        $ 58,493         $ 108,699
Restricted cash                                    1,145            1,502
Registration receivable                            16,260           14,006
Accounts receivable, net                           51,363           52,463
Inventories                                        4,809            1,662
Prepaid expenses and other current assets         8,922          7,509    
Total current assets                               140,992          185,841
                                                                  
Property and equipment, net                        41,236           33,830
Software development costs, net                    51,151           45,093
Goodwill                                           243,716          243,320
Intangible assets, net                             62,806           90,340
Other long-term assets                            2,569          2,133    
Total assets                                     $ 542,470       $ 600,557  
                                                                  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable                                 $ 8,174          $ 8,516
Registration fees payable                          61,272           72,405
Accrued expenses                                   38,865           41,106
Deferred revenue                                   66,846           54,919
Current portion of long-term debt                  –                5,000
Capital lease obligations, current portion         2,774            3,317
Other current liabilities                         4,373          42,613   
Total current liabilities                          182,304          227,876
                                                                  
Capital lease obligations, net of current          2,462            1,652
portion
Other long-term liabilities                        6,192            6,147
Deferred tax liability                            19,065         18,243   
Total liabilities                                  210,023          253,918
                                                                  
Stockholders’ equity:
Common stock                                       62               58
Treasury stock                                     (11,959  )       (11,959  )
Additional paid-in capital                         653,694          625,875
Accumulated other comprehensive income             8,934            7,923
Accumulated deficit                               (318,284 )      (275,258 )
Total stockholders’ equity                        332,447        346,639  
Total liabilities and stockholders’ equity       $ 542,470       $ 600,557  
                                                                  
                                                                  

(1) Includes adjustment to the 12/31/11 balance sheet for comparability. The
Company has concluded that certain deferred tax assets should have been
recorded as current assets in the financial statements for the period ended
December 31, 2011 which results in an increase in other current assets and a
corresponding increase in Deferred tax liability of $1,330.


THE ACTIVE NETWORK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                              
                                                   Twelve Months Ended
                                                   December 31,
                                                    2012          2011    
Operating activities
Net loss                                           $ (43,026 )     $ (15,327 )
Adjustments to reconcile net loss to net cash
provided
by operating activities:
Depreciation and amortization of property and        33,343          24,386
equipment
Amortization of intangible assets                    27,972          20,471
Stock-based compensation expense                     16,728          7,795
Deferred income taxes                                1,370           (5,016  )
Other non-cash items                                 (2,669  )       174
Change in operating assets and liabilities,
net of effect of acquisitions:
Restricted cash                                      357             4,190
Registration receivable                              (2,254  )       (5,378  )
Accounts receivable                                  1,849           (6,961  )
Inventories                                          (3,147  )       (1,662  )
Prepaid expenses and other assets                    (2,512  )       1,071
Accounts payable and accrued expenses                (3,141  )       887
Registration fees payable                            (11,133 )       31,738
Deferred revenue                                     11,894          6,400
Other liabilities                                   1,921         2,935   
Net cash provided by operating activities            27,552          65,703
Investing activities
Purchases of property and equipment                  (17,765 )       (12,514 )
Capitalized software development                     (23,026 )       (18,651 )
Cash paid for acquisitions, net of cash              (38,175 )       (35,144 )
acquired
Payment of contingent consideration                 -             (625    )
Net cash used in investing activities                (78,966 )       (66,934 )
Financing activities
Proceeds from issuance of common stock and
repurchase of unvested common stock                  10,955          5,187
Payments on capital lease obligations                (4,730  )       (2,595  )
Proceeds (repayment) of long-term debt               (5,000  )       (36,628 )
Net proceeds from initial public offering           -             112,566 
Net cash provided by financing activities            1,225           78,530
Effect of exchange rates on cash                    (17     )      (41     )
Net increase (decrease) in cash and cash             (50,206 )       77,258
equivalents
Cash and cash equivalents at beginning of           108,699       31,441  
period
Cash and cash equivalents at end of period         $ 58,493       $ 108,699 
                                                                   


THE ACTIVE NETWORK, INC.
SUPPLEMENTARY DATA
(In thousands, except revenue per registration)
(Unaudited)
                                                                               
                                                                                            
Operational        Three Months Ended                       Twelve Months Ended
Data:
                   December 31,                  %          December 31,                    %
                    2012         2011        change      2012          2011         change
Organizations        n/a            n/a          n/a          54.9            51.3          7   %
Net
registration         55,750         46,386       20   %       275,826         228,453       21  %
revenue
Registrations        18,434         17,305       7    %       89,900          80,274        12  %
Net
registration       $ 3.02         $ 2.68         13   %     $ 3.07          $ 2.85          8   %
revenue per
registration
                                                                                            
                                                                                            
GAAP and
Non-GAAP Gross     Three Months Ended            % or       Twelve Months Ended             % or
Profit Margin:
                   December 31,                  bps        December 31,                    bps
                    2012         2011        change      2012          2011         change
Total net          $ 93,672       $ 76,045       23   %     $ 418,893       $ 337,390       24  %
revenue
Add: impact of
business
combination
accounting          1,512        703                     12,373        1,471   
rules
Non-GAAP total     $ 95,184       $ 76,748       24   %     $ 431,266       $ 338,861       27  %
net revenue
                                                                                            
GAAP gross         $ 49,148       $ 39,358       25   %     $ 227,074       $ 186,476       22  %
profit
Add back:
stock-based          183            61                        657             168
compensation
Add back:
depreciation &       8,980          6,722                     32,708          23,518
amortization
Add: impact of
business
combination
accounting          1,512        703                     12,373        1,471   
rules
Non-GAAP gross     $ 59,823       $ 46,844       28   %     $ 272,812       $ 211,633       29  %
profit
                                                                                            
Gross profit
margin:
GAAP gross           52.5   %       51.8   %     70 bps       54.2    %       55.3    %     (110)
profit margin                                                                               bps
Non-GAAP gross       62.8   %       61.0   %     180          63.3    %       62.5    %     80 bps
profit margin                                    bps
                                                                                            
                                                                                            
Stock-Based
Compensation       Three Months Ended                       Twelve Months Ended
Expense:
                   December 31,                             December 31,
                    2012         2011                    2012          2011    
Cost of net        $ 183          $ 61                      $ 657           $ 168
revenue
Sales and            1,054          373                       3,763           1,413
marketing
Research and         622            279                       2,404           915
development
General and         2,877        2,300                   9,904         5,299   
administrative
Total
stock-based        $ 4,736       $ 3,013                  $ 16,728       $ 7,795   
compensation
                                                                                            


THE ACTIVE NETWORK, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share data)
(Unaudited)
                                                              
                                                                       
Non-GAAP Earnings:      Three Months Ended             Twelve Months Ended
                        December 31,                   December 31,
                         2012          2011         2012          2011    
Non-GAAP net (loss)
income:
GAAP net loss           $ (14,341 )     $ (8,482 )     $ (43,026 )     $ (15,327 )
Add back:
stock-based               4,736           3,013          16,728          7,795
compensation
Add back:
amortization of           6,840           5,161          27,972          20,471
intangibles
Add: impact of
business                  1,512           703            12,373          1,471
combination
accounting rules
Income tax effect        (4,581  )      (3,107 )      (19,976 )      (10,408 )
Non-GAAP net (loss)     $ (5,834  )     $ (2,712 )     $ (5,929  )     $ 4,002   
income
                                                                       
Non-GAAP shares:
GAAP shares - basic       60,423          54,109         58,804          36,072
Add: preferred                          -                           13,663  
stock conversion
Non-GAAP shares -        60,423        54,109       58,804        49,735  
basic
                                                                       
GAAP shares -             60,423          54,109         58,804          36,072
diluted
Add: preferred
stock and other                         -                           22,598  
securities
conversion
Non-GAAP shares -        60,423        54,109       58,804        58,670  
diluted
                                                                       
Non-GAAP net (loss)
income per share:
Basic                   $ (0.10   )     $ (0.05  )     $ (0.10   )     $ 0.08    
Diluted                 $ (0.10   )     $ (0.05  )     $ (0.10   )     $ 0.07    
                                                                       
                                                                       
Adjusted EBITDA:        Three Months Ended             Twelve Months Ended
                        December 31,                   December 31,
                         2012          2011         2012          2011    
Net loss                $ (14,341 )     $ (8,482 )     $ (43,026 )     $ (15,327 )
Add back: interest        170             63             577             2,771
expense, net
Add back: provision
(benefit) for             (1,082  )       (6,564 )       3,980           (4,074  )
income taxes
Add back:
depreciation and          16,188          12,203         61,315          44,857
amortization
Add back:
stock-based               4,736           3,013          16,728          7,795
compensation
Add back: other
(income) expense,        206           123          (1,157  )      14      
net
Adjusted EBITDA         $ 5,877        $ 356         $ 38,417       $ 36,036  
Add:
acquisition-related       -               1,977          -               1,977
severance costs
Add: impact of
business                 1,512         703          12,373        1,471   
combination
accounting rules
Adjusted EBITDA
excluding the
impact of
acquisition-related
severance costs and
business
combination             $ 7,389        $ 3,036       $ 50,790       $ 39,484  
accounting rules
                                                                       


THE ACTIVE NETWORK, INC.
FUTURE PERFORMANCE - 1ST QUARTER AND FULL YEAR 2013 OUTLOOK
(In thousands, except per share data)
                                                          
                                                                   
                   Estimated                       Estimated
                   1st Quarter 2013                Full Year 2013
                   Low End         High End        Low End         High End
                                                                   
Reconciliation
of GAAP to
Non-GAAP
Results:
Net loss           $ (21,000 )     $ (17,000 )     $ (38,000 )     $ (31,000 )
Interest,
taxes and            1,000           2,000           6,000           5,000
other
Depreciation
and                  16,000          15,000          60,000          59,000
amortization
Stock-based         6,000         5,000         22,000        21,000  
compensation
Adjusted           $ 2,000        $ 5,000        $ 50,000       $ 54,000  
EBITDA
                                                                   
Net loss per
share:
Net loss           $ (21,000 )     $ (17,000 )     $ (38,000 )     $ (31,000 )
Weighted
average shares       61,000          62,000          63,000          64,000
- basic and
diluted
Net loss per
share - basic      $ (0.34   )     $ (0.27   )     $ (0.60   )     $ (0.48   )
and diluted
                                                                   
Non-GAAP net
loss:
GAAP net loss      $ (21,000 )     $ (17,000 )     $ (38,000 )     $ (31,000 )
Add back:
stock-based          6,000           5,000           22,000          21,000
compensation
Add back:
amortization         6,000           5,500           21,000          20,000
of intangibles
Income tax          (4,200  )      (3,675  )      (15,050 )      (14,350 )
effect
Non-GAAP net       $ (13,200 )     $ (10,175 )     $ (10,050 )     $ (4,350  )
loss
Weighted
average shares       61,000          62,000          63,000          64,000
- basic and
diluted
Non-GAAP net
loss per share     $ (0.22   )     $ (0.16   )     $ (0.16   )     $ (0.07   )
- basic and
diluted

Contact:

Media:
ACTIVE Network
Megan Lavine, 1-858-652-6133
PR@ACTIVEnetwork.com
or
Investors:
The Blueshirt Group
Brinlea Johnson, 1-212-331-8424
Brinlea@BlueshirtGroup.com
Allise Furlani, 1-212-331-8433
Allise@BlueshirtGroup.com
 
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