Model N, Inc. (MODN) 10K Annual Reports & 10Q SEC Filings

the leader in cloud revenue management solutions, today announced financial results for the fourth quarter and fiscal year 2023 ended September 30, 2023.

“2023 was a pivotal year in our business model transition as we continued our path to convert our remaining customers to the cloud. During the fourth quarter, we signed five SaaS transitions, closed numerous deals in our customer base, and saw strong pipeline growth for new logos. Our professional services team continues to deliver stellar results including generating best-in-class service margins,” stated Jason Blessing, president and chief executive officer of Model N.

Recent Company Highlights

•Model N launched Channel Collaboration, a new self-service portal for high-tech manufacturers and their channel partners. Channel Collaboration provides high-tech manufacturers and their partners real-time visibility into channel data, enabling faster and more informed business decisions while maintaining channel compliance in a complex global market.

•Model N released new product innovations to ensure compliance and optimize revenue geared towards the increasingly complex regulatory environment for global pharma manufacturers.

Fourth Quarter 2023 Financial Highlights

•Revenues: Total revenues were $64.0 million, an increase of 10% from the fourth quarter of fiscal year 2022. Subscription revenues were $46.4 million, an increase of 8% from the fourth quarter of fiscal year 2022.

•Gross Profit: Gross profit was $36.9 million, an increase of 13% from the fourth quarter of fiscal year 2022. Gross margin was 58% and 56% for the fourth quarter of fiscal year 2023 and 2022, respectively. Non-GAAP gross profit was $39.6 million, an increase of 9% from the fourth quarter of fiscal year 2022. Non-GAAP gross margin was 62% for the fourth quarter of fiscal year 2023 and 2022. Subscription gross margin was 66% for the fourth quarter of fiscal year 2023 compared to 64% for the fourth quarter of fiscal year 2022. Non-GAAP subscription gross margin was 69% and 70% for the fourth quarter of fiscal year 2023 and 2022, respectively.

•GAAP Loss and Non-GAAP Income from Operations: GAAP loss from operations was $0.4 million compared to loss from operations of $4.9 million for the fourth quarter of fiscal year 2022. Non-GAAP income from operations was $10.8 million, an increase of 35% from the fourth quarter of fiscal year 2022.

•GAAP Net Income: GAAP net income was $0.6 million compared to a net loss of $8.1 million for the fourth quarter of fiscal year 2022. GAAP diluted net income per share attributable to common stockholders was $0.02 based upon weighted average shares outstanding of 38.9 million compared to net loss per share of $0.22 for the fourth quarter of fiscal year 2022 based upon weighted average shares outstanding of 37.2 million.

•Non-GAAP Net Income: Non-GAAP net income was $12.2 million, an increase of 59% from the fourth quarter of fiscal year 2022. Non-GAAP net income per diluted share was $0.31 based upon diluted weighted average shares outstanding of 38.9 million compared to non-GAAP net income per diluted share of $0.20 for the fourth quarter of fiscal year 2022 based upon diluted weighted average shares outstanding of 37.5 million.

•Adjusted EBITDA: Adjusted EBITDA was $11.0 million, an increase of 34% from the fourth quarter of fiscal year 2022. Adjusted EBITDA margin was 17% compared to 14% for the fourth quarter of fiscal year 2022.

•SaaS ARR and SaaS Net Dollar Retention: SaaS ARR reached $131.2 million, representing growth of 20% year-over-year. Trailing 12-month SaaS net dollar retention decreased to 118.2% from 129% in the prior quarter.

The following information was filed by Model N, Inc. (MODN) on Thursday, November 9, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Model N, Inc.'s 10-K Annual Report:

Other - Other Highlight
Net cash provided by financing activities for the fiscal year ended September 30, 2022, resulted from $4.3 million proceeds from purchases made under our employee stock purchase plan and the exercise of stock options and $0.3 million increase in funds held for customers.

Financial - Expense Highlight
These limitations include: adjusted EBITDA does not reflect stock-based compensation expense; depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future; adjusted EBITDA does not reflect any cash requirements for these replacements; adjusted EBITDA does not include acquisition-related expense; adjusted EBITDA does not reflect income taxes, interest expense, interest income, and other income and expense; and other companies in our industry may calculate adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Financial - Expense Highlight
The increase in cost of subscription primarily pertains to employee-related costs including stock-based compensation driven by 7% increase in average headcount, cloud hosting and related services and outside service costs of $1.7 million but partially offset by a $0.8 million decrease in amortization of intangibles.
Other - Other Highlight
For more information regarding adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Other - Other Highlight
Additionally, contract modifications for services and products that are distinct but are not priced commensurate with their SSP or are not distinct from performance obligations under the existing contract may affect the initial transaction price or the allocation of the transaction price to the performance obligations in the contract.
Financial - Debt
If additional funds are raised...Read more
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Sales and Marketing Our sales...Read more
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Historically, our growth was driven...Read more
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Professional Services Professional services revenue...Read more
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Cost of Revenues Subscription Cost...Read more
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Managed support services revenue includes...Read more
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Overview We are a leading...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Model N, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 19.1: Report Composed To Security Holders

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Exhibit 97.1: Ex-97.1

Ticker: MODN
CIK: 1118417
Form Type: 10-K Annual Report
Accession Number: 0001118417-23-000209
Submitted to the SEC: Fri Nov 17 2023 4:14:14 PM EST
Accepted by the SEC: Fri Nov 17 2023
Period: Saturday, September 30, 2023
Industry: Computer Programming Data Processing