Qumu Corp (QUMU) 10-Q Quarterly Report Tue Aug 04 2020

Qumu Corporation (Nasdaq: QUMU), the leading provider of best-in-class video technology for the enterprise, today reported financial results for the second quarter ended June 30, 2020.

Q2 2020 Financial Highlights


•	Revenue increased 74% year-over-year to a quarterly record $9.3 million, Qumu's highest for a second quarter period as a video technology solutions company


•	Net loss was $(692,000) and adjusted EBITDA, a non-GAAP measure, totaled $809,000


•	Customer retention was 90% for the second quarter 2020


•	Cash and cash equivalents totaled $9.9 million


•	Management reaffirms its 2020 revenue outlook of $29 million, representing 14% year-over-year growth and an increase from previous revenue outlook of $28 million provided on May 5, 2020

Management Commentary

“Our financial outperformance in the second quarter was the direct result of the swelling demand for Qumu’s best-in-class software platform in the now largely remote-work environment," said Qumu Chairman Neil E. Cox. “We believe the COVID-19 pandemic has catalyzed a fundamental shift in enterprise video usage, driving organizations globally to rapidly adopt and expand their use of video for both business continuity and effective internal communications in the ‘new normal’ business landscape. Qumu’s technology forms the critical infrastructure that enables Global 2000 enterprises to securely create, manage and deliver live and on demand video across any organization at scale.”

TJ Kennedy, Qumu President and CEO commented: “The global pandemic has positioned Qumu as an even more essential part of our customers’ businesses, fueling an exponential increase in usage of our platform over the last several months. One illustrative example of this paradigm shift is the large expansion order we received at the end of Q1 from one our financial institutions customers that multiplied from 3,000 to 50,000 users in just a matter of days. This win, while notable in its own right, is indicative of an overall surge we’re experiencing across our customer base, where usage is running at orders of magnitude above base levels, and which we expect will ultimately translate to real revenue growth in the coming quarters.

“As customers and prospects first solved their immediate video and collaboration needs in the wake of the pandemic, we’ve seen a material increase in demand from both constituencies for Qumu’s back end video infrastructure platform to help them securely manage and deliver their outgrown video needs. We are seeing this increased demand drive a record sales pipeline for our Company that we are actively and efficiently working to monetize over the coming quarters.”

Second Quarter 2020 Financial Results

Revenue increased 74% to $9.3 million in the second quarter 2020 from $5.4 million in the second quarter 2019. The increase in revenue was primarily due to a large customer order received at the end of the first quarter 2020, which the customer identified as specifically driven by COVID-19. A significant portion of the revenue from that customer order was recognized in the second quarter 2020, with incremental revenue to be recognized in the third and fourth quarter of 2020.

Subscription, maintenance and support revenue increased 12% to $4.7 million in the second quarter 2020 from $4.2 million in the second quarter 2019, which was driven by revenue related to the large customer order received at the end of the first quarter 2020 previously mentioned.

The following information was filed by Qumu Corp (QUMU) on Wednesday, July 29, 2020 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Qumu Corp's 10-Q Quarterly Report:

Revenue - Product Highlight
While the current authorization remains in effect, the Company expects its primary use of cash will be to fund operations in support of the Company's goals for revenue growth and operating margin improvement.

Financial - Expense Highlight
Additionally, compensation and employee-related expenses increased due to incentive compensation costs incurred in the three and six months ended June 30, 2020.
Revenue - Product Highlight
The increase in revenue was primarily due to a large customer order received at the end of the first quarter 2020, which the customer identified as specifically driven by COVID-19.
Financial - Earnings Highlight
A comparison of gross profit and gross margin by revenue category is as follows (dollars in thousands): The total gross margin percentage decreased 2.4% and 7.4% in the three and six months ended June 30, 2020, respectively, compared to the corresponding 2019 periods, resulting from sales mix in the current year periods that included more appliance revenue, which generally has lower margins.
Financial - Cash Flow Highlight
The operating cash flows for the 2019 period were favorably impacted by the change in receivables, offset by unfavorable changes in contract assets, deferred revenue and contract assets.
Revenue - Product
The increase in software licenses...Read more
Financial - Earnings
The 12.4% and 0.3% increase...Read more
Financial - Expense
Additionally, interest expense was lower...Read more
Financial - Shares
Qumu's platform enables global organizations...Read more
Financial - Expense
This decrease was partially offset...Read more
Financial - Shares
In October 2010, the Company's...Read more
Financial - Expense
The increase in total research...Read more
Financial - Earnings
Future gross profit margins are...Read more
Financial - Expense
Additionally, expenses for the three...Read more
Financial - Expense
Qumu expects to incur increased...Read more
Revenue - Product
Other customer orders and sales...Read more
Revenue - Product
Revenue increased 74% in the...Read more
Revenue - Product
Sales and marketing Sales and...Read more
Financial - Cash Flow
The operating cash flows for...Read more
Financial - Expense
The increase in expenses of...Read more
Revenue - Product
In the second half of...Read more
Other - Other
The dramatic increase is the...Read more
Revenue - Product
The quarterly software licenses and...Read more
Financial - Income
Other income (expense), net was...Read more
Financial - Earnings
Gross profit includes $68,000 and...Read more
Financial - Earnings
Due to customer demand, Qumu...Read more
Financial - Expense
The following is a summary...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Qumu Corp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Certification Of Ceo Pursuant To Section 302

Exhibit 31..2: Certification Of Cfo Pursuant To Section 302

Exhibit 32: Certification Of Ceo / Cfo Pursuant To Section 906

Ticker: QUMU
CIK: 892482
Form Type: 10-Q Quarterly Report
Accession Number: 0000892482-20-000030
Submitted to the SEC: Tue Aug 04 2020 5:14:42 PM EST
Accepted by the SEC: Tue Aug 04 2020
Period: Tuesday, June 30, 2020
Industry: Prepackaged Software