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August 8, 2018

Talend Reports Second Quarter 2018 Financial Results

REDWOOD CITY, Calif., Aug. 8, 2018 — Talend, a global leader in cloud and big data integration solutions, has released financial results for the second quarter ended June 30, 2018.

“We achieved record revenue for the second quarter of $49.8 million, delivering 39% year-over-year growth and substantial improvement to our operating margin,” said Mike Tuchen, Talend CEO.  “We continue to see our cloud business accelerate with cloud subscription growing over 100% year-over-year for the eighth consecutive quarter. With the launch of our Summer 2018 release, which enhances enterprise cloud capabilities, we believe we are well positioned for continued cloud momentum. We were pleased to receive market recognition by being named a leader in Forrester Research’s Big Data Fabric Wave 2018 report, earning the highest scores of any vendor in both the Current Offering and Strategy categories. We also secured a position as a leader in the 2018 Gartner Magic Quadrant for Data Integration Tools for the third consecutive time.”

Second Quarter 2018 Financial Highlights
(in thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2017 ** 2018 2017 ** 2018
Revenue:
   Total Revenue $   35,813 $   49,755 $   68,678 $   96,568
    Year-over-Year % Change 41 %   39% * 43 %   41% *
   Subscription Revenue $   30,280 $   42,027 $   57,819 $   81,813
    Year-over-Year % Change 43 % 39% * 43 % 41% *
    Year-over-Year % Change – on a constant currency basis 46 %   34 % 44 % 34 %
  IFRS operating margin -18 % -18 % -20 % -20 %
  Non-IFRS operating margin (1) -13 % -7 % -14 % -9 %
Net loss:
   IFRS $   (7,754 ) $   (8,739 ) $   (15,172 ) $   (18,854 )
   Non-IFRS (2) $   (5,790 ) $   (3,553 ) $   (11,329 ) $   (8,541 )
Net loss per share:
   Net loss per share – basic and diluted $   (0.27 ) $   (0.29 ) $   (0.53 ) $   (0.64 )
   Non-IFRS net loss per share $   (0.20 ) $   (0.12 ) $   (0.39 ) $   (0.29 )
Shares outstanding used in computing per share amounts – basic and diluted   28,884   29,741   28,786   29,641
_________________
(1) Non-IFRS operating margin is calculated as non-IFRS loss from operations divided by total revenue.
(2) Non-IFRS financial measures exclude stock-based compensation, amortization of acquired intangibles and costs related to our follow-on offerings.
*  The growth rate includes the benefit from the adoption of IFRS 15 which was adopted by the company on January 1, 2018.
**  We have initially applied IFRS 15 at January 1, 2018. Under the transition method chosen for IFRS 15, the comparative information is not restated.

A reconciliation of IFRS to non-IFRS financial measures is provided in the financial tables below. An explanation of these measures is also included below, under the heading Non-IFRS Financial Measures.

Recent Business Highlights

In the second quarter we:

  • Received recognition as a leader in Forrester Research’s Big Data Fabric Wave 2018 report, earning the highest scores of any vendor in both the Current Offering and Strategy categories.
  • Secured position as a leader in the 2018 Gartner Magic Quadrant for Data Integration Tools for the third consecutive time, moving upwards in the Leaders Quadrant based on ability to execute.
  • Appointed two new board members: Equinix Chief Product Officer, Brian Lillie and Tableau Executive Vice President of Product Development, Mark Nelson.
  • Launched Talend Summer 2018 release, adding enterprise-class cloud features that enable greater agility with serverless data integration and boost DevOps productivity.

Financial Outlook

Talend’s outlook assumes similar business conditions and foreign exchange rates as of July 31, 2018.

Our guidance is based on the new IFRS 15 revenue recognition standard, which was adopted by Talend on January 1, 2018. See the section titled “New Revenue Recognition Standard Under IFRS 15” below.

Third quarter of 2018:

  • Total revenue is expected to be in the range of $51.6 million to $52.6 million.
  • Loss from operations is expected to be in the range of $(10.5) million to $(9.5) million and non-IFRS loss from operations is expected to be in the range of $(3.4) million to $(2.4) million.
  • Net loss is expected to be in the range of $(10.8) million to $(9.8) million and non-IFRS net loss is expected to be in the range of $(3.7) million to $(2.7) million.
  • Net loss per basic and diluted share is expected to be in the range of $(0.36) to $(0.33) and non-IFRS net loss per share is expected to be in the range of $(0.12) to $(0.09).
  • Basic and diluted weighted average share count of 30.0 million shares.

Full year 2018:

  • Total revenue is expected to be in the range of $204.6 million to $206.6 million.
  • Loss from operations is expected to be in the range of $(39.3) million to $(37.3) million and non-IFRS loss from operations is expected to be in the range of $(15.1) million to $(13.1) million.
  • Net loss is expected to be in the range of $(39.7) million to $(37.7) million and non-IFRS net loss is expected to be in the range of $(15.5) million to $(13.5) million.
  • Net loss per basic and diluted share is expected to be in the range of $(1.32) to $(1.26) and non-IFRS net loss per share is expected to be in the range of $(0.52) to $(0.45).
  • Basic and diluted weighted average share count of 30.0 million shares.

These statements are forward-looking and actual results may differ materially. Refer to the section under the heading Forward-Looking Statements below for information on the factors that could cause our actual results to differ materially. An explanation of non-IFRS measures is also included below under the heading Non-IFRS Financial Measures.

Conference Call Information

Talend will host a conference call and live webcast for analysts and investors at 4:30 p.m. Eastern time on August 6, 2018. Parties in the United States and Canada can access the call by dialing (888) 417-2254, using conference code 1927267. International parties can access the call by dialing (719) 457-2664, using conference code 1927267.

The webcast will be accessible on Talend’s investor relations website at http://investor.talend.com for one year. A telephonic replay of the conference call will be available through Saturday, August 11, 2018.  To access the replay, parties in the United States and Canada should call (866) 375-1919 and enter conference code 1927267.  International parties should call (719) 457-0820 and enter conference code 1927267.

Source: Talend

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