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-  Revenue of $39.8 Million, increase of 19% from Q2 2013  
-  Gross Sending Volume of $1.8 Billion, increase of 12% from Q2 2013  
-  1,195,425 Active Customers, increase of 30% from Q2 2013

SAN FRANCISCO, Calif., July 22, 2014 (GLOBE NEWSWIRE) -- Xoom Corporation (Nasdaq:XOOM), a leading digital money transfer provider, today announced financial results for the second quarter of 2014:

  • Revenue for the second quarter was $39.8 million, an increase of 19% from the second quarter of 2013.
  • Gross profit for the second quarter was $26.9 million, an increase of 15% from the second quarter of 2013.
  • GAAP net income for the second quarter was $1.4 million, or $0.03 per diluted share, compared to net income of $4.1 million, or $0.11 per diluted share, for the second quarter of 2013.
  • Adjusted EBITDA for the second quarter was $5.1 million, compared to $6.1 million for the second quarter of 2013.
  • Non-GAAP diluted net income per share for the second quarter was $0.09, compared to $0.14 per diluted share for the second quarter of 2013. 
  • Cash, cash equivalents, disbursement prefunding and short-term investments were $246.3 million as of June 30, 2014, compared to $249.5 million as of December 31, 2013.
  • As of June 30, 2014 and December 31, 2013, we had no outstanding balance under our line of credit.

"We had strong results in the quarter, underpinned by continued growth in active customers, low transaction losses, ongoing momentum in the move to mobile and important service enhancements that will further improve our customer experience," said John Kunze, president and chief executive officer, Xoom (XOOM). "In particular, in the quarter, we executed on several important initiatives to drive the business, which include further enhancing our mobile offering, expanding on our mission to provide instant payouts to all of our bank partners and continuing to improve our risk management expertise. We are well-positioned in this large and expanding market as the leading digital pure play in money transfer, and we are excited by the opportunity in front of us."

Operating Metrics

  • Gross sending volume for the quarter grew 12% to $1.8 billion from the second quarter of 2013.
  • Transactions for the quarter grew 24% to 3,192,199 from the second quarter of 2013.
  • Active customers for the quarter grew 30% to 1,195,425 from the second quarter of 2013.
  • New customers for the quarter decreased by 1% to 133,540 from the second quarter of 2013.

Highlights and Strategic Announcements

During the quarter, Xoom continued to expand its payout network and service innovations.

  • Xoom expanded its partnership with Punjab National Bank to offer instant bank deposit services to bank accounts in India using the Immediate Payment Service platform, which allows Xoom customers to send money instantly to many prominent banks in India.
  • Xoom introduced a major upgrade to the Xoom Money Transfer App which now allows Xoom customers, including new users, to send money to both new and existing recipients from their mobile devices.

Business Outlook

For Q3 2014, Xoom is targeting the following:

  • Revenue to be between $39.0 million and $41.0 million.
  • Adjusted EBITDA to be between $1.5 million and $3.0 million.
  • GAAP diluted net loss per share to be in the range of $0.08 to $0.05.
  • Non-GAAP diluted net income (loss) per share to be in the range of $(0.01) to $0.02.

For Full Year 2014, Xoom is targeting the following:

  • Revenue to be between $158 million and $162 million.
  • Adjusted EBITDA to be between $13 million and $16 million.
  • GAAP diluted net loss per share to be in the range of $0.09 to $0.02.
  • Non-GAAP diluted net income per share to be in the range of $0.16 to $0.24.

Conference Call

Xoom plans to host a conference call today to review its second quarter 2014 results and to discuss its financial outlook for the third quarter and full year 2014. The conference call can be accessed by dialing the toll free number (877) 440-7574 or the international number (253) 237-1314.  The call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed via the Web at ir.xoom.com. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 60 days.

About Xoom

Xoom is a leading digital money transfer provider in 30 countries, focused on helping consumers send money in a secure, fast and cost-effective way using their mobile phone, tablet or computer. During the 12 month period ended June 30, 2014, Xoom's more than 1.1 million active customers sent approximately $6.3 billion to family and friends. The company is headquartered in San Francisco and can be found online at www.xoom.com .

Forward-Looking Statements

This press release and Xoom's scheduled conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Xoom, including, but not limited to, its expectations regarding its expansion into new markets and services, market demand, future earnings, revenue and financial and operating metrics. These forward-looking statements are based upon the current expectations and beliefs of Xoom's management as of the date of this press release and conference call, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release and during the conference call are based on information available to Xoom as of the date thereof, and Xoom disclaims any obligation to update these forward-looking statements.

In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the evolving nature of the industry in which Xoom operates; its failure to attract new customers or retain existing customers; economic, political or regulatory factors beyond its control, in the U.S. or in countries to which its customers transfer money; fluctuations in foreign exchange rates; competitive pricing and marketing strategies by competitors; the adoption of competing technologies that supplant its services; the use of its services for illegal or improper purposes; the failure of partners to disburse funds according to Xoom's instructions; its ability to contract for third-party services on commercially reasonable terms; the maintenance of its payment network on terms consistent with those currently in place or newly adopted regulations in the U.S or in countries to which its customers transfer money; increases in transaction processing fees; declines in customer confidence in its business or in money transfer providers generally; its ability to protect its intellectual property; the adoption of mobile phones and devices to access information on the Internet and use of its services; potential breaches of its security systems; and other risks and uncertainties.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to Xoom's Annual Report on Form 10-K for the year ended December 31, 2013 and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system ("EDGAR") at www.sec.gov or Xoom's website at www.xoom.com .

Non-GAAP Financial Measures

Xoom's stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP diluted net income per share. Adjusted EBITDA excludes provision for income taxes, interest expense, interest income, amortization of acquired intangible asset, depreciation and other amortization expense, and expenses related to stock-based compensation. Non-GAAP net income and non-GAAP diluted net income per share exclude expenses related to stock-based compensation and amortization of acquired intangible asset. Adjusted EBITDA and non-GAAP net income and non-GAAP diluted net income per share exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. Xoom believes these adjustments provide useful comparative information to investors.

Xoom considers these non-GAAP financial measures to be important because they provide useful measures of its operating performance and are used by its management for that purpose. In addition, investors often use measures such as these to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding Xoom's operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

(Xoom-f)

Contacts: 

Sharrifah Al-Salem, CFA
Director of Investor Relations
IR@xoom.com

Robin Carr
Director of Public Relations
PR@xoom.com

XOOM CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
         
      June 30,
2014
December 31,
2013
     


(unaudited)
 (derived from
audited 
financial statements) 
Assets        
Current assets:        
Cash and cash equivalents      $ 98,137  $ 110,979
Disbursement prefunding      40,299  33,799
Short-term investments      107,851  104,678
Customer funds receivable      25,065  16,381
Prepaid expenses and other current assets      5,288  4,237
Total current assets      276,640  270,074
Non-current assets:        
Property, equipment and software, net      7,493  4,855
Goodwill      9,032  
Intangibles, net      5,543  250
Restricted cash      10,969  7,816
Other assets      2,164  1,084
Total assets      $ 311,841  $ 284,079
Liabilities and Stockholders' Equity        
Current liabilities:        
Accounts payable and accrued expenses      $ 10,212  $ 8,345
Customer liabilities      21,392  10,791
Total current liabilities      31,604  19,136
Non-current liabilities:        
Other non-current liabilities      3,019  99
Total liabilities      34,623  19,235
Commitments and Contingencies        
Stockholders' equity:        
Convertible preferred stock, $0.0001 par value, 25,000,000 shares authorized; issued and outstanding 0 shares; aggregate liquidation preference $0 at June 30, 2014 and December 31, 2013    
Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 38,183,373 and 37,583,945 shares at June 30, 2014 and December 31, 2013, respectively  4 4
Additional paid-in capital      332,511  321,878
Accumulated other comprehensive loss      (9)  
Accumulated deficit      (55,288)  (57,038)
Total stockholders' equity      277,218  264,844
Total liabilities and stockholders' equity      $ 311,841  $ 284,079
         
         
XOOM CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except per share data)
         
  Three Months Ended
June 30,
Six Months Ended
June 30,
  2014 2013 2014 2013
  (unaudited) (unaudited)
Revenue  $ 39,844  $ 33,493  $ 75,782  $ 57,808
Cost of revenue  12,977  10,119  22,555  17,638
Gross profit  26,867  23,374  53,227  40,170
Marketing  7,356  6,907  16,138  12,599
Technology and development  8,801  5,476  16,651  10,310
Customer service and operations  4,371  3,325  8,345  6,342
General and administrative  4,817  3,039  9,975  5,962
Total operating expense  25,345  18,747  51,109  35,213
Income from operations  1,522  4,627  2,118  4,957
Other income (expense):        
Interest expense  (344)  (499)  (672)  (946)
Interest income  69  41  145  77
Other income  170  53  190  57
Income before provision for income taxes  1,417  4,222  1,781  4,145
Provision for income taxes  19  132  31  134
Net income  $ 1,398  $ 4,090  $ 1,750  $ 4,011
Net income per share:        
Basic  $ 0.04  $ 0.12  $ 0.05  $ 0.15
Diluted  $ 0.03  $ 0.11  $ 0.04  $ 0.11
Weighted-average shares used to compute net income per share:                
Basic  38,102  32,974  37,952  26,046
Diluted  41,622  37,263  41,667  35,865
         
         
XOOM CORPORATION AND SUBSIDIARIES
Key Metrics
         
  Three Months Ended
June 30,
Six Months Ended
June 30,
  2014 2013 2014 2013
   (unaudited)  (unaudited)
Other Financial and Operational Data:        
Gross Sending Volume (in thousands)  $ 1,805,342  $ 1,606,584  $ 3,382,033  $ 2,662,431
Transactions  3,192,199  2,582,000  6,088,838  4,621,000
Active Customers  1,195,425  919,610  1,195,425  919,610
New Customers  133,540  134,899  250,635  244,530
Cost Per Acquisition of a New Customer  $ 50  $ 44  $ 53  $ 42
Adjusted EBITDA (in thousands)  $ 5,068  $ 6,149  $ 8,591  $ 7,723
         
         
XOOM CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Operating Results
         
  Three Months Ended
June 30,
Six Months Ended
June 30,
  2014 2013 2014 2013
  (In thousands, except per share data)
  (unaudited)
Non-GAAP net income per share:        
GAAP net income   $ 1,398  $ 4,090  $ 1,750  $ 4,011
Add back: stock-based compensation  2,333  959  4,257  1,737
Add back: amortization of acquired intangible asset  203    407  
Non-GAAP net income  $ 3,934  $ 5,049  $ 6,414  $ 5,748
         
Non-GAAP diluted net income per share  $ 0.09  $ 0.14  $ 0.15  $ 0.16
         
Non-GAAP diluted shares  41,622  37,263  41,667  35,865
         
Reconciliation of Adjusted EBITDA:        
Net income  $ 1,398  $ 4,090  $ 1,750  $ 4,011
Provision for income taxes  19  132  31  134
Interest expense  344  499  672  946
Interest income  (69)  (41)  (145)  (77)
Amortization of acquired intangible asset  203    407  
Depreciation and other amortization expense  840  510  1,619  972
Stock-based compensation  2,333  959  4,257  1,737
Adjusted EBITDA  $ 5,068  $ 6,149  $ 8,591  $ 7,723
         
         
XOOM CORPORATION AND SUBSIDIARIES
Forward-Looking Guidance
         
  Three Months Ending
September 30, 2014
Twelve Months Ending
December 31, 2014
  From To From To
  (In thousands, except per share data)
Net income (loss) per share:        
GAAP net loss  $ (3,247)  $ (1,747)  $ (3,585)  $ (591)
Add back: stock-based compensation  2,565  2,565  9,719  9,719
Add back: amortization of acquired intangible asset  204  204  814  814
Non-GAAP net income (loss)  $ (478)  $ 1,022  $ 6,948  $ 9,942
         
GAAP diluted net loss per share  $ (0.08)  $ (0.05)  $ (0.09)  $ (0.02)
Non-GAAP diluted net income (loss) per share  $ (0.01)  $ 0.02  $ 0.16  $ 0.24
         
GAAP diluted shares  38,388  38,388  38,273  38,273
Non-GAAP diluted shares  38,388  42,745  42,279  42,279
         
Adjusted EBITDA:        
GAAP net loss  $ (3,247)  $ (1,747)  $ (3,585)  $ (591)
Provision for income taxes  15  15  61  61
Interest expense  351  351  1,373  1,373
Interest income  (100)  (100)  (343)  (337)
Amortization of acquired intangible asset  204  204  814  814
Depreciation and other amortization expense  1,712  1,712  4,961  4,961
Stock-based compensation  2,565  2,565  9,719  9,719
Adjusted EBITDA  $ 1,500  $ 3,000  $ 13,000  $ 16,000

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Source: Xoom Corporation 2014 GlobeNewswire, Inc.
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