SciQuest Announces Fourth Quarter and Full Year 2013 Financial Results

SciQuest Announces Fourth Quarter and Full Year 2013 Financial Results

                  Posted Strong Quarterly and Annual Results

                           Attained 2013 Priorities

              Generated Significant Growth in Commercial Market

CARY, N.C., Feb. 6, 2014 (GLOBE NEWSWIRE) -- SciQuest, Inc. (Nasdaq:SQI), a
leading provider of cloud-based business automation solutions for spend
management, today announced its financial results for the fourth quarter and
full year ended December 31, 2013.

"2013 was an important year of execution that accelerated our transformation
from a niche eProcurement solutions company to the leading provider of
cloud-based spend management solutions. In the fourth quarter, we extended our
track record of rapid growth. We increased non-GAAP revenues by 26% from a
year ago, excluding a settlement fee we received. On this same basis,
full-year revenue increased 37%. Strong non-GAAP revenue helped to generate
non-GAAP net income per share that exceeded our guidance ranges. In addition,
adjusted free cash flow beat expectations," said Stephen Wiehe, President and
Chief Executive Officer of SciQuest. "Success was fueled by a combination of
robust customer additions, solid cross-selling and the transformation of our
sales organization that enhanced the team's people, processes and structure.
We are particularly encouraged by the strong contribution from the commercial
market, which complemented continued growth in other market segments. On the
financial front, we are beginning to drive leverage from the operations we
acquired in the second half of 2012. We also substantially completed
operational integration of CombineNet.

"Looking ahead, we plan to leverage our successes and continue executing on
the strategy that drove our performance in 2013: attract new customers,
increase cross-selling, enhance and expand the solution suite and improve
operational and financial efficiency, particularly at acquired entities. Our
2013 accomplishments and ongoing improvement efforts are expected to enable us
to achieve our long-term targets of 20% non-GAAP revenue growth and 20%
non-GAAP operating margins."

Fourth Quarter 2013 Results

SciQuest reported GAAP revenues of $25.8 million for the quarter ended
December 31, 2013 compared to $19.7 million in the fourth quarter of 2012.

GAAP loss from operations in the fourth quarter of 2013 was $1.0 million
compared to GAAP loss from operations of $2.1 million in the fourth quarter of
2012. GAAP net loss was $1.2 million in the fourth quarter of 2013 compared to
GAAP net loss of $2.4 million in the same quarter in the prior year. The
primary drivers of the fourth quarter 2013 losses were the expected impacts of
acquisition related costs and stock-based compensation.

GAAP basic net loss per share was $0.05 in the fourth quarter of 2013 based on
23.8 million weighted average basic shares outstanding. GAAP diluted net loss
per share in the fourth quarter of 2012 was $0.11 based on 22.4 million
weighted average basic shares outstanding.

Non-GAAP revenue^(1) in the fourth quarter was $26.7 million. Excluding the
additional revenue generated by a settlement fee that we received from a
former customer, non-GAAP revenues^(1) would have been $26.2 million, an
increase of 26% from the prior year.

Non-GAAP income from operations^(2) in the fourth quarter of 2013 was $4.4
million compared to non-GAAP income from operations^(2) of $2.7 million in the
fourth quarter of 2012. Non-GAAP net income^(3) in the fourth quarter of 2013
was $2.7 million compared to non-GAAP net income^(3) in the fourth quarter of
2012 of $1.6 million.

Non-GAAP diluted net income per share^(3) was $0.11 in the fourth quarter of
2013 based on 24.3 million weighted average diluted shares outstanding.
Excluding the additional revenue generated by the settlement fee, non-GAAP
diluted net income per share^(3) in the quarter would have been $0.10. Based
on 22.8 million weighted average diluted shares outstanding, non-GAAP diluted
net income per share^(3) in the fourth quarter of 2012 was $0.07.

Full Year 2013 Results

On a full year basis, GAAP revenues were $90.2 million in 2013 compared to
$66.5 million in 2012. GAAP loss from operations was $5.1 million in 2013
compared to GAAP loss from operations of $1.1 million in 2012. GAAP net loss
was $4.7 million in 2013 and GAAP basic net loss per share during the year was
$0.21 based on 23.0 million weighted average basic shares outstanding. In
2012, GAAP net loss was $1.2 million and GAAP basic net loss per share was
$0.05 based on 22.3 weighted average basic shares outstanding. The primary
drivers of these losses were the expected impacts of acquisition related costs
and stock-based compensation.

Non-GAAP revenues^(1) in 2013 were $93.6 million. Excluding additional revenue
generated by a settlement fee that we received from a former customer,
non-GAAP revenues^(1) would have been $93.1 million, up 37% from 2012.

Non-GAAP income from operations^(2) was $14.5 million in 2013 compared to
non-GAAP income from operations^(2) of $8.9 million in 2012. Non-GAAP net
income^(3) was $8.8 million in 2013 compared to non-GAAP net income^(3) of
$5.5 million in 2012.

Non-GAAP diluted net income per share^(3) in 2013 was $0.38 based on 23.5
million weighted average diluted shares outstanding. Based on 22.7 million
weighted average diluted shares outstanding, non-GAAP diluted net income per
share^(3) in 2012 was $0.24.

Net cash provided by operating activities in 2013 was $18.0 million. Adjusted
free cash flow^(4) in 2013 was $14.5 million. Excluding the additional cash
generated by the settlement fee, adjusted free cash flow^(4) would have been
$14.0 million.

Business Outlook

Based on the Company's strong fourth quarter performance, SciQuest is issuing
the following guidance:

First quarter 2014

  *GAAP revenues to be between $25.5 million and $25.8 million.
  *Per share results to be between GAAP basic net loss per share of $0.01 and
    breakeven.
  *Weighted average basic shares outstanding to be approximately 24.0
    million.
  *Non-GAAP revenues^(1) to be between $26.1 million and $26.4 million.
  *Non-GAAP diluted net income per share^(3) to be between $0.08 and $0.09.
  *Weighted average diluted shares outstanding to be approximately 24.5
    million.

Full Year 2014

  *GAAP revenues to be between $106.5 million and $111.5 million.
  *GAAP diluted net income per share of between $0.05 and $0.10.
  *Weighted average diluted shares outstanding to be approximately 24.6
    million.
  *Net cash provided by operating activities to be between $22.4 million and
    $26.4 million.
  *Purchase of property and equipment of approximately $5.5 million,
    capitalization of software development costs of approximately $4.8
    million, acquisition related cash costs of $3.6 million and headquarter
    relocation costs of approximately $0.3 million.
  *Non-GAAP revenues^(1) to be between $108.0 million and $113.0 million.
  *Non-GAAP diluted net income per share^(3) to be between $0.40 and $0.44.
  *Adjusted free cash flow^(4) to be between $16.0 million and $20.0 million.

A reconciliation of the most comparable GAAP financial measure to the non-GAAP
measures used above is included with the financial tables at the end of this
release.

ENDNOTES

1) Non-GAAP revenues exclude the purchase accounting deferred revenue
adjustment.

2) Non-GAAP income from operations excludes the purchase accounting deferred
revenue adjustment; stock-based compensation expense; acquisition related
costs; and the amortization of (i) intangible assets and (ii) acquired
software.

3) Non-GAAP net income and non-GAAP diluted net income per share exclude the
purchase accounting deferred revenue adjustment; stock-based compensation
expense; acquisition related costs; and the amortization of (i) intangible
assets and (ii) acquired software. Non-GAAP net income includes the burden of
the tax effect of these items.

4) Adjusted free cash flow is defined as net cash provided by operating
activities plus acquisition-related costs, less (i) the purchase of property
and equipment and (ii) capitalization of software development costs.

Conference Call Information
          
What:      SciQuest's fourth quarter and full year 2013 financial results
           conference call
When:      Thursday, February 6, 2014
Time:      4:30 p.m. ET
Webcast:   http://investor.sciquest.com (live and replay)
Live Call: (877) 407-8289, domestic
          (201) 689-8341, international
Replay:    (877) 660-6853, domestic
          (201) 612-7415, international
          
Live and replay conference ID code: 13574601

Non-GAAP Financial Measures

SciQuest provides all information required in accordance with GAAP, but
believes evaluating its ongoing operating results may not be as useful if an
investor is limited to reviewing only GAAP financial measures. Accordingly,
SciQuest presents non-GAAP financial measures in reporting its financial
results to provide investors with additional tools to evaluate SciQuest's
operating results in a manner that focuses on what SciQuest believes to be its
ongoing business operations and what SciQuest uses to evaluate its ongoing
operations and for internal planning and forecasting purposes. SciQuest's
management does not itself, nor does it suggest that investors should,
consider such non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with GAAP.
SciQuest's management believes it is useful for itself and investors to
review, as applicable, both GAAP information that includes: (i) the
amortization of acquired intangible assets; (ii) the impact of stock-based
compensation; (iii) other significant items, such as acquisition related
expenses; (iv) the purchase accounting impact on deferred revenue; and (v) the
beneficial income tax effect of these items; and the non-GAAP measures that
exclude such information in order to assess the performance of SciQuest's
business and for planning and forecasting in subsequent periods. Whenever
SciQuest uses such a non-GAAP financial measure, it provides a reconciliation
of the non-GAAP financial measure to the most closely applicable GAAP
financial measure to the extent possible. Investors are encouraged to review
the related GAAP financial measures and the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial measure as
detailed herein.

About SciQuest

SciQuest (Nasdaq:SQI) is the largest publicly held pure-play provider of
cloud-based, business automation solutions for spend management – offering
deep domain knowledge and a leading, customer-driven portfolio. SciQuest
solutions enable greater visibility and compliance organization-wide to help
you gain control, optimize efficiencies, and reduce spend. These cloud-based
solutions are easy to implement and proven to deliver measurable, sustainable
value with SciQuest's high-touch support, analysis and automation. Learn more
about our solutions and how we can help your organization turn spending into
savings at www.sciquest.com.

To join the conversation, please visit our blog, The Open Kitchen at
http://www.sciquest.com/blog/ or follow us on Twitter @SciQuest.

Cautionary Note Regarding Forward-Looking Statements

Forward-looking statements include information concerning SciQuest's possible
or assumed future results of operations, business strategies, financing plans,
competitive position, industry environment, potential growth opportunities,
potential market opportunities, the effects of competition and other factors
that could impact future performance. Forward-looking statements, which
include references to the our business strategy, long-term targets and all
statements in the "Business Outlook" section, consist of statements that are
not historical facts and can be identified by terms such as, but not limited
to, "accelerates", "anticipates," "believes," "could," "seeks," "estimates,"
"expects," "intends," "may," "plans," "potential," "predicts," "projects,"
"should," "will," "would" or similar expressions and the negatives of those
terms. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements.
Certain of these risks are discussed in "Part I, Item 1A, Risk Factors" and
elsewhere in SciQuest's most recent Annual Report on Form 10-K and other
reports, as filed with the United States Securities and Exchange Commission
("SEC"). The company's SEC reports are available free of charge on the SEC's
website at http://www.sec.gov or on the company's website at www.sciquest.com.
All forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Also, forward-looking statements represent management's beliefs and
assumptions only as of the date of this release. Except as required by law,
SciQuest assumes no obligation to update these forward-looking statements
publicly or to update the reasons actual results could differ materially from
those anticipated in these forward-looking statements, even if new information
becomes available in the future. Given these risks and uncertainties,
investors should not place undue reliance on forward-looking statements as a
prediction of actual results. 

SQI-F

SCIQUEST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands except per share amounts)
                                                         
                                      As of December31, As of December31,
                                      2013                2012
                                      (unaudited)         
Assets                                                    
Current assets:                                           
Cash and cash equivalents             $19,117           $15,606
Short-term investments                 15,105             29,740
Accounts receivable, net               12,987             12,916
Prepaid expenses and other current     3,268              1,434
assets
Deferred tax asset                     290                77
Total current assets                  50,767             59,773
(Loss) earnings per share              10,028             7,093
Goodwill                              65,280             37,295
Intangible assets, net                29,490             16,346
Deferred project costs                6,701              6,962
Deferred tax asset                     10,885             12,682
Other                                 294                173
Total assets                          $173,445          $140,324
Liabilities and Stockholders' Equity                      
Current liabilities:                                      
Accounts payable                      $741              $1,864
Accrued liabilities                   13,765             8,771
Deferred revenues                     57,417             47,821
Total current liabilities             71,923             58,456
Deferred revenues, less current        13,343             14,640
portion
Stockholders' equity:                                     
Common stock, $0.001par value;
50,000shares authorized; 23,811 and
22,525shares issued and outstanding   24                 23
as of December 31, 2013 and December
31, 2012, respectively
Acquisition related costs              108,864            81,894
Accumulated other comprehensive loss   (1,401)            (115)
Accumulated deficit                   (19,308)           (14,574)
Total stockholders' equity             88,179             67,228
Total liabilities and stockholders'    $173,445          $140,324
equity


SCIQUEST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands except per share amounts)
                                                               
                         Three Months Ended December Year Ended December 31,
                          31,
                         2013          2012          2013         2012
                         (unaudited)                 (unaudited)
                                                               
Revenues                 $25,848     $19,704     $90,231    $66,465
Cost of revenues (1)(2)   7,469        6,341        27,411      20,270
Gross profit             18,379       13,363       62,820      46,195
Operating expenses: (1)                                         
Research and development 7,742        6,283        28,267      17,188
Sales and marketing      7,197        5,719        24,261      17,907
General and               3,587        2,912        13,033      10,918
administrative
(Loss) earnings per share 837          532          2,382       1,268
Total operating expenses 19,363       15,446       67,943      47,281
Loss from operations     (984)        (2,083)      (5,123)     (1,086)
Other income (expense),                                         
net:
Interest income          11           20           61          95
Other income (expense),   10           (41)         (48)        (82)
net
Total other income        21           (21)         13          13
(expense), net
Loss before income taxes (963)        (2,104)      (5,110)     (1,073)
Income tax (expense)      (257)        (338)        376         (103)
benefit
Net loss                 $(1,220)    $(2,442)    $(4,734)   $(1,176)
                                                               
Other comprehensive loss:                                       
Foreign currency          (680)        (12)         (1,286)     (115)
translation adjustments
Comprehensive loss        $(1,900)    $(2,454)    $(6,020)   $(1,291)
                                                               
Net loss per share                                              
Acquisition related costs $(0.05)     $(0.11)     $(0.21)    $(0.05)
Diluted                   $(0.05)     $(0.11)     $(0.21)    $(0.05)
                                                               
Weighted average shares
outstanding used in                                             
computing per share
amounts
Basic                     23,759       22,433       23,044      22,285
Diluted                   23,759       22,433       23,044      22,285
                                                               
(1) Amounts include
stock-based compensation                                        
expense, as follows:
                         Three Months Ended December Year Ended December 31,
                          31,
                         2013          2012          2013         2012
                         (unaudited)                 (unaudited)
Cost of revenues          $131        $109        $499       $300
Research and development 426          444          1,714       1,217
Sales and marketing      577          501          1,992       1,510
General and               696          534          2,727       2,170
administrative
                         $1,830      $1,588      $6,932     $5,197
                                                               
(2) Cost of revenues
includes amortization of                                        
capitalized software
development costs of:
                                                               
Amortization of
capitalized software      $555        $287        $1,842     $928
development costs:
Amortization of acquired  528          324           1,580       553
software:
                         $1,083      $611        $3,422     $1,481


SCIQUEST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                               
                         Three Months Ended December Year Ended December 31,
                          31,
                         2013          2012          2013         2012
                         (unaudited)                 (unaudited)
Cash flows from operating                                       
activities
Net loss                  $(1,220)    $(2,442)    $(4,734)   $(1,176)
                                                               
Adjustments to reconcile
net loss to net cash                                            
provided by operating
activities:
Depreciation and          2,503        1,608        7,963       4,281
amortization
Loss on disposal of fixed --           2            --          38
assets
Stock-based compensation  1,830        1,588        6,932       5,197
expense
Deferred taxes            233          166          (443)       (55)
Changes in operating
assets and liabilities,                                         
net of effects of
acquisitions:
(Loss) earnings per share (212)        (5,470)      2,497       556
Prepaid expense and other (1,041)      233          (1,510)     (145)
current assets
Deferred project costs    (495)        29           290         (1)
and other assets
Accounts payable         417          1,575        (1,214)     1,764
Accrued liabilities      3,077        2,437        4,170       1,995
Deferred revenues        3,597        6,858        4,067       7,926
Net cash provided by      8,689        6,584        18,018      20,380
operating activities
Cash flows from investing                                       
activities
Business acquisition, net (59)         (7,741)      (25,592)    (30,188)
of cash acquired
Addition of capitalized
software development      (712)        (934)        (3,654)     (3,113)
costs
Purchase of property and  (1,032)      (115)        (2,873)     (1,825)
equipment
Purchase of short-term    --           (4,820)      (23,525)    (6,020)
investments
Maturities of short-term  125          1,625        38,160      20,965
investments
Net cash used in          (1,678)      (11,985)     (17,484)    (20,181)
investing activities
Cash flows from financing                                       
activities
Proceeds from exercise of 495          216          2,103       528
common stock options
Acquisition related costs 170          --           930         --
Net cash provided by      665          216          3,033       528
financing activities
Effect of exchange rate
change on cash and cash   (17)         (19)         (56)        (79)
equivalents
Net increase (decrease)
in cash and cash          7,659        (5,204)      3,511       648
equivalents
Cash and cash equivalents
at beginning of the       11,458       20,810       15,606      14,958
period
Cash and cash equivalents $19,117     $15,606     $19,117    $15,606
at end of the period


RECONCILIATION DATA
(UNAUDITED)
(in thousands except per share amounts)
                                                               
Reconciliation of Net     Three Months Ended December
Loss to Non-GAAP Net      31,                        Year Ended December 31,
Income:
                         2013          2012          2013         2012
Net loss                  $(1,220)    $(2,442)    $(4,734)   $(1,176)
Purchase accounting
deferred revenue          888          1,084        3,323       1,490
adjustment
Amortization of           837          532          2,382       1,268
intangible assets
Amortization of acquired  528          324          1,580       553
software
Stock-based compensation  1,830        1,588        6,932       5,197
Acquisition related costs 1,346        1,256        5,377       1,506
Tax effect of adjustments (1,482)      (705)        (6,015)     (3,378)
Non-GAAP net income       $2,727      $1,637      $8,845     $5,460
                                                               
(Loss) earnings per share                                       
Basic                     $0.11       $0.07       $0.38      $0.25
Diluted                   $0.11       $0.07       $0.38      $0.24
                                                               
Weighted average shares
outstanding used in                                             
computing per share
amounts:
Basic                     23,759       22,433       23,044      22,285
Diluted                   24,306       22,822       23,520      22,712
                                                               
Reconciliation of Loss
from Operations to        Three Months Ended December Year Ended December 31,
Non-GAAP Income from      31,
Operations:
                         2013          2012          2013         2012
Loss from operations      $(984)      $(2,083)    $(5,123)   $(1,086)
Purchase accounting
deferred revenue          888          1,084        3,323       1,490
adjustment
Amortization of           837          532          2,382       1,268
intangible assets
Amortization of acquired  528          324          1,580       553
software
Stock-based compensation  1,830        1,588        6,932       5,197
Acquisition related costs 1,346        1,256        5,377       1,506
Non-GAAP income from      $4,445      $2,701      $14,471    $8,928
operations
                                                               
Reconciliation of
Operating Expenses to     Three Months Ended December Year Ended December 31,
Non-GAAP Operating        31,
Expenses:
                         2013          2012          2013         2012
Operating expenses        $19,363     $15,446     $67,943    $47,281
Amortization of           (837)        (532)        (2,382)     (1,268)
intangible assets
Stock-based compensation  (1,699)      (1,479)      (6,433)     (4,897)
Acquisition related costs (1,346)      (1,256)      (5,377)     (1,506)
Non-GAAP operating        $15,481     $12,179     $53,751    $39,610
expenses
                                                               
Reconciliation of Net
Cash Provided by          Three Months Ended December Year Ended December 31,
Operating Activities to   31,
Adjusted Free Cash Flow:
                         2013          2012          2013         2012
Net cash provided by      $8,689      $6,584      $18,018    $20,380
operating activities
Purchase of property and  (1,032)      (115)        (2,873)     (1,825)
equipment
Capitalization of
software development      (712)        (934)        (3,654)     (3,113)
costs
Free cash flow            6,945        5,535        11,491      15,442
Acquisition related costs 521          56           2,977       306
Adjusted free cash flow   $7,466      $5,591      $14,468    $15,748


RECONCILIATION DATA
(UNAUDITED)
(in thousands)
                                                               
Reconciliation of         Three Months Ended December
Revenues to Non-GAAP      31,                        Year Ended December 31,
Revenues:
                         2013          2012          2013         2012
Revenues                  $25,848     $19,704     $90,231    $66,465
Purchase accounting
deferred revenue          888          1,084        3,323       1,490
adjustment
Non-GAAP Revenues         $26,736     $20,788     $93,554    $67,955
                                                               
Reconciliation of Cost of Three Months Ended December
Revenues to Non-GAAP Cost 31,                        Year Ended December 31,
of Revenues:
                         2013          2012          2013         2012
Cost of revenues          $7,469      $6,341      $27,411    $20,270
Amortization of acquired  (528)        (324)        (1,580)     (553)
software
Stock-based compensation  (131)        (109)        (499)       (300)
(Loss) earnings per share $6,810      $5,908      $25,332    $19,417
                                                               
Reconciliation of
Research and Development  Three Months Ended December Year Ended December 31,
to Non-GAAP Research and  31,
Development:
                         2013          2012          2013         2012
Research and development  $7,742      $6,283      $28,267    $17,188
Stock-based compensation  (426)        (444)        (1,714)     (1,217)
Acquisition related costs (600)        (600)        (2,400)     (600)
Non-GAAP Research and     $6,716      $5,239      $24,153    $15,371
development
                                                               
Reconciliation of Sales   Three Months Ended December
and Marketing to Non-GAAP 31,                        Year Ended December 31,
Sales and Marketing:
                         2013          2012          2013         2012
Sales and marketing       $7,197      $5,719      $24,261    $17,907
Stock-based compensation  (577)        (501)        (1,992)     (1,510)
Acquisition related costs (600)        (600)        (2,400)     (600)
Non-GAAP Sales and        $6,020      $4,618      $19,869    $15,797
marketing
                                                               
Acquisition related costs Three Months Ended December Year Ended December 31,
                          31,
                         2013          2012          2013         2012
General and               $3,587      $2,912      $13,033    $10,918
administrative
Stock-based compensation  (696)        (534)        (2,727)     (2,170)
Acquisition related costs (146)        (56)         (577)       (306)
Non-GAAP General and      $2,745      $2,322      $9,729     $8,442
administrative
                                                               
Reconciliation of
Amortization of           Three Months Ended December
Intangible Assets to      31,                        Year Ended December 31,
Non-GAAP Amortization of
Intangible Assets:
                         2013          2012          2013         2012
Amortization of           $837        $532        $2,382     $1,268
intangible assets
Amortization of           (837)        (532)        (2,382)     (1,268)
intangible assets
Non-GAAP Amortization of  $--        $--        $--       $--
intangible assets


RECONCILIATION DATA
(UNAUDITED)
(in thousands except per share amounts)
                                                               
Reconciliation of Revenue      Three Months Ended March Twelve Months Ended
Outlook to Non-GAAP Revenue    31, 2014                 December 31, 2014
Outlook:
                              Low end of  High end of  Low end of High end of
                               Range       Range        Range      Range
Revenues                       $25,500   $25,800    $106,500 $111,500
Purchase accounting deferred   600         600          1,500      1,500
revenue adjustment
Non-GAAP revenues              $26,100   $26,400    $108,000 $113,000
                                                               
Reconciliation of (Loss)
Earnings per Share Outlook to  Three Months Ended March Twelve Months Ended
Non-GAAP Earnings per Share    31, 2014                 December 31, 2014
Outlook:
                              Low end of  High end of  Low end of High end of
                               Range       Range        Range      Range
(Loss) earnings per share      $(0.01)   $--       $0.05    $0.10
Purchase accounting deferred   0.02        0.02         0.05       0.05
revenue adjustment per share
Amortization of intangible
assets per share and acquired  0.06        0.06         0.22       0.22
software per share
Stock-based compensation per   0.06        0.07         0.27       0.27
share
Headquarter relocation         0.00        0.00         0.05       0.05
expenses per share
Tax effect of adjustments per  (0.05)      (0.06)       (0.24)     (0.25)
share
Non-GAAP earnings per share    $0.08     $0.09      $0.40    $0.44
                                                               
Reconciliation of Net Cash
Provided by Operating                                 Twelve Months Ended
Activities Outlook to Adjusted                          December 31, 2014
Free Cash Flow Outlook:
                                                     Low end of High end of
                                                        Range      Range
Net cash provided by operating                        $22,400  $26,400
activities
Purchase of property and                              ($5,500)   ($5,500)
equipment
Capitalization of software                            ($4,800)   ($4,800)
development costs
Acquisition related costs                             $3,600     $3,600
Headquarter relocation costs                          $300       $300
Adjusted free cash flow                               $16,000  $20,000

CONTACT: SciQuest media contact:
         Michelle Perkins
         SciQuest, Inc.
         919-659-2228
         mperkins@sciquest.com
        
         SciQuest Investor contact:
         Jamie Andelman
         SciQuest, Inc.
         919-659-2322
         jandelman@sciquest.com
 
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