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© 2017 Silver Spring Networks. All rights reserved. 1 © 2017 Silver Spring Networks. All rights reserved. 1
Silver Spring Networks, Inc.
March 2017
© 2017 Silver Spring Networks. All rights reserved. 2
This document contains forward-looking statements that involve risks and uncertainties. These forward-looking
statements include statements regarding the momentum in Silver Spring Networks’ business; future growth and market
opportunity; future deployments; future investment; future innovation; the performance, capabilities and benefits of our
products; and future financial results. Statements including words such as "anticipate", "believe", "estimate" or "expect" and
statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates
and expectations based on current information and are subject to business and economic risks and uncertainties that could
cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking
statements. Important factors that could cause results to differ materially from the statements herein include: timing around
customer decisions and deployment pace; receipt by our customers of required regulatory approvals; dependence on a limited
number of customers and key suppliers; general economic risks; specific economic risks in different geographies and among
different industries; failure to maintain or increase renewals and increase business from existing customers; uncertainties
around continued success in sales growth and market share gains; the expansion of our target markets, including the IoT
market; lengthy sales cycles with no assurances that a prospective customer will select Silver Spring’s products and services;
amounts included in backlog may not result in billings or revenue; adverse publicity about, or consumer or political opposition
to, the smart grid; security breaches involving smart grid products or services; the ability to integrate technology into third-party
devices and Silver Spring’s relationship with third-party manufacturers; execution and customer adoption risks related to new
product introductions and innovation, including our fifth generation networking platform and products; the ability to attract and
retain personnel, including members of Silver Spring’s management team; changes in strategy; technological changes that
make Silver Spring’s products and services less competitive; competition, particularly from larger companies with more
resources than Silver Spring; international business uncertainties; the ability to acquire and integrate other businesses; and
other risk factors set forth from time to time in Silver Spring’s filings with the SEC, copies of which are available free of charge
at the SEC’s website at www.sec.gov.
All forward-looking statements in this document reflect Silver Spring’s expectations as of February 21, 2017. Silver Spring
undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements in this document in
light of new information or future events.
In addition, the preliminary financial results set forth herein are estimates based on information currently available to Silver
Spring. While Silver Spring Networks believes these estimates are meaningful, they could differ from the actual amounts that
Silver Spring ultimately reports in its Annual Report on Form 10-K for the year ended December 31, 2016. Silver Spring
assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the year ended
December 31, 2016.
Forward-Looking Statements
© 2017 Silver Spring Networks. All rights reserved. 3
SSNI at-a-GlanceAn Emerging Leader for Broader IoT
• Founded in 2002, Silver Spring Networks, Inc.
(NYSE: SSNI) enables the Internet of Important
Things™ by reliably and securely connecting things
that matter
• Leading utilities and major cities around the world
rely on Silver Spring’s end-to-end solutions to
manage their applications and deliver operational
results
• World class network and data platform safeguarded
with military grade security
• More than 25.5MM network endpoints delivered,
11MM in contracted backlog, and active pilots with
customers that represent over 26MM potential
endpoints (as of 12/31/2016)
• Headquartered in San Jose, CA with over 700
employees and a patent portfolio with 107 granted
US patents (62 pending)1
CEO: Mike Bell
Interim CFO: Ken Gianella
COO: Ayse Ildeniz
EVP of R&D: Philippe Gaglione
CTO: Don Reeves
Co-Founder: Raj Vaswani
Company Background Financial Profile – Billings ($MM)
Management Background
Notes:
1. In addition to 170 patents granted and 67 patent applications pending in
foreign jurisdictions; as of September 30, 2016
$194 $186 $189
$38 $44 $45$45 $52 $61
$277 $282 $295
-0.1
0.1
0.3
0.5
0
100
200
300
2014 2015 2016
Products Professional Services Managed services and SaaS
Managed services / SaaS % of Billings
16% 19% 21%Note: Some figures may not add due to rounding
© 2017 Silver Spring Networks. All rights reserved. 4
Our History
15 Years of Innovation and Breaking New Ground
Founding of
company
2002
First Pilot
with
Westario
Power
2005
Shipped
Gen 1
products for
Smart
Utility
2006 2007
Signed first
customer
2nd large
deployment
2008 2009
First non-
US office
opened in
Australia
2012
10MM end-
points
delivered
2013
IPO on
NYSE
under
ticker
SSNI
20MM
endpoints
delivered
2014
Launched
Smart City;
acquired
Mike Bell
appointed
CEO;
IoT push
2015
Acquired
Record
bookings
2016
Consecutive
quarters of
strong
financial
results
© 2017 Silver Spring Networks. All rights reserved. 5
Broader
Internet
of Things
Our Vision
Time
Target
Devices
10s of
Millions
100s of
Millions
Billions
Smart
Utility
Networks
Smart City
Infrastructure
Networks
Open, standards-based, secure, reliable
network platform
© 2017 Silver Spring Networks. All rights reserved. 6
Our Open IoT Platform
Silver Spring manages a real-time, global network of information that allows customers to
manage and analyze their data with greater productivity, efficiency, and security.
Connectivity
PlatformServices
Applications & Analytics
MeshNetworking
• Network Operations
o Network monitoring
o Security
• Enhanced Network Svs
o SLA
o Edge intelligenceNetwork Management
Platform
Data API &
Analytics Engine
Cloud-to-Cloud
Integration
Connecting a growing array of IoT devices and sensors
• Customers’ freedom of
choice
• Standard developer
tools for integration
Endpoint Devices
• SSNI Communication Modules:
‒ Standards-based (Wi-SUN)
‒ Gen5 technology with innovative features
‒ Constant powered as well as battery-
powered
Endpoint Connectivity
Gen5 NIC Milli 5
© 2017 Silver Spring Networks. All rights reserved. 7
Supporting Multiple Applications On A
Single Network Platform
ELECTRICITY
WATER
PREPAY
AMI
OPERATIONS
GAS
ADVANCED
METERING
DIRECT LOAD
CONTROL
PRICE
RESPONSE
ENERGY
EFFICIENCY
DEMAND
RESPONSE
DEMAND SIDE
MANAGEMENT
CUSTOMER IQ
MARKETING
SERVICES
CUSTOMER
ENGAGEMENT
CUSTOMER
ENGAGEMENT
CUSTOMER
PROGRAMS
SILVERLINK
INSIGHTS
SERVICE
ACTIONABLE
INSIGHTS
INSIGHTS &
ANALYTICS
REVENUE
ASSURANCE
FAULT LOCATION
& SERVICE
RESTORE
VOLTAGE
OPTIMIZATION
NETWORK
MONITORING
GRID
RELIABILITY
DISTRIBUTION
AUTOMATION
PV & RENEWABLE
INTEGRATION
STREET LIGHTS
SMART
CITIES
SMART CITY
INFRASTRUCTURE
TRAFFIC &
PARKING
NOISE SENSORS
ENVIRONMENT
SENSORS
AMI New Solutions
© 2017 Silver Spring Networks. All rights reserved. 8
Smart City Infrastructure VisionSmart Street Lighting Builds the Foundation of a Smart City
SMART CITY USE CASES
SMART
PARKING
WEATHER
SENSORS
DIGITAL
SIGNAGE
ACOUSTIC
SENSORS
WATER & GAS
METERING
TRAFFIC
LIGHTS &
CONTROLS
ELECTRIC
VEHICLE
CHARGING
SOLAR
INVERTERS
SECURITY AND
SURVEILLANCE
WASTE
MANAGEMENT
CANOPY APPLICATIONS
STREET LIGHTS SMART METERS
SMART CITY USE CASES
SMART
PARKING
WEATHER
SENSORS
DIGITAL
SIGNAGE
ACOUSTIC
SENSORS
WATER & GAS
METERING
TRAFFIC
LIGHTS &
CONTROLS
ELECTRIC
VEHICLE
CHARGING
SOLAR
INVERTERS
SECURITY AND
SURVEILLANCE
WASTE
MANAGEMENT
CANOPY APPLICATIONS
STREET LIGHTS SMART METERS
© 2017 Silver Spring Networks. All rights reserved. 9
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
De
live
red
En
dp
oin
ts (
MM
)Our Traction with Leading Utilities & Cities
AMI
AMI
Street Light
City of Paris
Street Light
Bristol
DA
Westminster,
London
Customer Awards
DA Expand
DA
Street Light
With a backlog of $1.165B1
25.5M Endpoints
Delivered1
1. Backlog and delivered endpoints as of 12/31/2016
© 2017 Silver Spring Networks. All rights reserved. 10
Delivering Benefits to Our Customers
• 61 million annual meter reads avoided
• Time-of-Use pricing for EV customers
• 70K homes restored 24-hours after Napa quake
• Smart Rate pricing program has saved more
than 1.5 GW
• 2015 ReliabilityOne™ National Reliability Award;
better than 99.98% service reliability
• $30 million operational cash savings for 2014
• Increased reliability by over 20% in past 5 years
• Believed to be North America’s largest street
light project
• Record reliability 2015 for third year in a row due
primarily to smart grid deployments
• ComEd estimates over $1 billion in societal
savings over same time period, with a 25%
decline in frequency and 42% decline in duration
of outages.
• Expected $67 million decline in 2016 rates.
• Largest 2-way residential program with 110K in-
home smart thermostats
• Ranked #1 in Customer Satisfaction in 2013 and
2014 by JD Power
• Piloting street light project
Source: Florida Power & Light 10/23/15 and 5/25/15 PR, ComEd 1/27/2016 PR and company reports, 5/5/15; PG& E Q1 2015 earnings call, OG&E company reports, SSNI internal data
© 2017 Silver Spring Networks. All rights reserved. 11
Our Business ModelSolutions-oriented and Focused on High Value Creation
Time
$
+17%
+14%
+1%
2014-16
Billings CAGR
Endpoint
Monetization
Mgd Svs &
SaaS:
$2-$3/
Year1
Products2:
~$65-85
Prof. Svs.:
~$15-1720.2
25.5
8
11
2014 2016
Cumulative Network
Endpoints3
Endpoint is an electric meter connected to a home or business.
1. Based on the current model and delivered cumulative endpoints.
2. Based on the current model and new endpoints delivered within the year.
3. Cumulative endpoints delivered or in contracted backlog as of December 31 for the year indicated
Delivered
Contracted
Growth
Drivers
Solutions
capabilities
Multi-app
network
Technology
leadership +
Coverage
Up ~12%
CAGR
(MM)
© 2017 Silver Spring Networks. All rights reserved. 12
Growing Managed Services & SaaS Billings
25.5MM
Endpoints
Delivered as of
Q4 2016
~11MM
Endpoints in
Backlog1
Expanded Menu
into a Growing
Footprint
Building Higher
Visibility
Recurring Base
Cumulative Endpoints Delivered (MM)2 Non-GAAP Managed services & SaaS
Billings3 ($M)
1. Total backlog as of December 31, 2016
2. Cumulative endpoints delivered as of December 31 for the year indicated
3. Certain amounts have been reclassified as of December 31 in 2012, 2013 and 2014 from Professional services to Managed services and SaaS related to product support
which is recurring in nature to conform to current period presentation
20.2 22.9
25.5
2014 2015 2016
$44.5 $52.4
$60.5
2014 2015 2016
~12% CAGR ~17% CAGR
© 2017 Silver Spring Networks. All rights reserved. 13
Our Potential to Unlock New MarketsExpand with Technology and Solutions
Leading utilities and major cities world wide
Core Verticals Today
Broaden ecosystem and accelerate growth25.5 MM IoT devices delivered1
Ve
rtic
als
/ T
AM
(2
01
9)
Ap
pli
cati
on
& d
evic
es
Verticals with critical infrastructureSmart Utility Smart City
Advanced metering
Distribution automation
Demand response
Grid analytics
$7.6B
Source: 2019 TAM based on Bloomberg, Gartner, and SSNI research
1. As of Dec 31, 2016
Potential Expansion into Broader IoT
Networked streetlights
Intelligent traffic mgmt
Parking
Air & noise quality
Security monitoring
Waste management
New customers and new partnerships
$8.1B
Direct GTM; Solution-led Direct & ChannelLeverage channel and partnerships to scale
Selective organic and inorganic vertical integration
Varies
Customer use case driven; near term leverages:
IoT for Utilities IoT for Smart Cities
Paris
London
Copenhagen
Stockholm
Rhode Island
© 2017 Silver Spring Networks. All rights reserved. 14
Our Strength is in Providing SolutionsCombining Our Platform with the Ecosystem
Services & Support
Application Software /
Analytics / Data Services
Control Platform
Endpoint Device
Enhanced Network &
Data Platform
Basic Network &
Communications Module
Solution Elements Revenue Model
One-Time
and/or Recurring
Recurring
Recurring
One-time1
Recurring
One-time1
3rd
parties
Selectively prime or
vertically integrate for
time-to-market / TCO
advantage
Smart Utility &
City Solutions
New Verticals
& IoT Solutions
Ecosystem / partner;
and/or vertically
integrate
Partner /
opportunistically
integrate solutions
Continue to
expand network
operations &
control platform;
Broaden to new
verticals
BYOD
1. One-Time charge has potential for recurring with “Bring Your Own Device” and/or provide
Network & Coms Module with a Term License, NaaS, and/or financing options
3rd
parties
3rd
parties
BYOD
© 2017 Silver Spring Networks. All rights reserved. 15
Taking Our Opportunity to Scale
We are Enabling the Internet of Important ThingsTM
Solution & Managed
Service CapabilitiesIoT Pure-Play Poised
for Growth
Connectivity & Data
Management Platform
Smart Grid & Smart
City Vertical Expertise
© 2017 Silver Spring Networks. All rights reserved. 16
Supplemental
© 2017 Silver Spring Networks. All rights reserved. 17
State of the Business – Q416
• Solid financial results and record bookings in 2016• Winning in our core markets
• Continue to improve financial execution
• Focused and executing on our Core Business• Record backlog; New international awards - CESC and DEWA
• Regulatory approval granted for AEP Ohio
• Investing for Growth• Capture the emerging international opportunity
• Build channels and partnerships for driving deeper into our Core & IoT
© 2017 Silver Spring Networks. All rights reserved. 18
$921
$770
$1,165
2014 2015 2016
20.222.9
25.5
2014 2015 2016
66.4%
56.5% 51.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
2014 2015 2016
Key Financial and Operating Metrics
Billings ($MM) Cumulative Network Endpoints Delivered (MM)
Total Backlog ($MM) Cost of Billings as % of Billings (%)
$194 $186 $189
$38 $44 $45
$45 $52 $61
$277 $282 $295
-0.1
0
0.1
0.2
0.3
0.4
0.5
0.6
0
50
100
150
200
250
300
350
2014 2015 2016
Products Professional Services Managed services and SaaS
Notes:
Some figures may not add due to rounding
Amounts are as of December 31 for the year indicated
© 2017 Silver Spring Networks. All rights reserved. 19
$58 $60
$17 $18
Q415 Q416
$61 $62
$14 $16
Q415 Q416
$13 $13
$14 $17
$27 $30
Q415 Q416
$48 $48
$27 $30
$75 $78
Q415 Q416
Q416 Financial Results$Millions
Billings Services Billings
Billings by Solution Billings by Region
Note: Some figures may not add due to rounding
Services
Product
+12%
(1%)
Managed/SaaS
Prof. Services
+19%
+3%
+4%
New Solution
AMI
+8%
+2%
+13%International
US
© 2017 Silver Spring Networks. All rights reserved. 20
$26 $23
$13 $16
$40 $39
Q415 Q416
Q416 Financial Results$Millions
Cost of Billings Services Cost of Billings
Cost of Billings as % of Billings Non-GAAP Operating Expenses
Note: Some figures may not add due to rounding
Q415 Q416
Product 55.0% 47.4%
Services 49.0% 54.4%
Managed / SaaS 51.4% 53.4%
Professional services 46.4% 55.7%
Total 52.9% 50.2%
Services
Product
$6 $7
$7
$9
$13
$16
Q415 Q416
Managed/SaaS
Prof. Services
$27
$35
Q415 Q416
+29%
© 2017 Silver Spring Networks. All rights reserved. 21
$770
$1,165
Q415 Q416
$6
$4 $4
$5
$8
Q415 Q116 Q216 Q316 Q416
$113 $118
Q316 Q416
Q416 Financial Results$Millions, cumulative endpoints in millions
Cash & Equivalents Cash Flow from Operations
Cumulative Endpoints Delivered Total Backlog
22.925.5
Q415 Q416
+$5M
+11%
+51%
Note: Some figures may not add due to rounding
© 2017 Silver Spring Networks. All rights reserved. 22
$237 $241
$45 $54
2015 2016
$226 $241
$56 $53
2015 2016
$186 $189
$96 $105
$282 $295
2015 2016
Full Year 2016 Financial Results$Millions
Billings Services Billings
Billings by Solution Billings by Region
Note: Some figures may not add due to rounding
Services
Product
+9%
+2%
Managed/SaaS
Prof. Services
+16%
+2%
+4%
New Solution
AMI
+7%
+20%International
US
$44 $45
$52 $61
$96 $105
2015 2016
(5%)
© 2017 Silver Spring Networks. All rights reserved. 23
$114
$130
2015 2016
$27 $27
$30 $34
$56 $61
2015 2016
$103 $90
$56 $61
$159 $151
2015 2016
Full Year 2016 Financial Results$Millions
Cost of Billings Services Cost of Billings
Cost of Billings as % of Billings Non-GAAP Operating Expenses
Note: Some figures may not add due to rounding
Services
Product
Managed/SaaS
Prof. Services
2015 2016
Product 55.4% 47.4%
Services 58.5% 58.1%
Managed / SaaS 56.5% 56.7%
Professional services 61.0% 59.9%
Total 56.5% 51.2%
© 2017 Silver Spring Networks. All rights reserved. 24
Silver Spring supplements the results of operations presented in accordance with generally accepted accounting principles, or GAAP, with
certain non-GAAP metrics. Silver Spring manages its business, makes planning decisions, evaluates its performance and allocates
resources by assessing non-GAAP metrics such as billings, Managed services and SaaS billings, cost of billings, non-GAAP operating
expense, and total backlog. Silver Spring believes that these non-GAAP financial metrics, when taken together with the corresponding
GAAP financial measures, offer valuable supplemental information regarding the performance of its business, and will help investors better
understand the sales volumes, and gross margin and profitability trends, as well as the cash flow characteristics, of its business. The non-
GAAP metrics should not be considered in isolation from, are not a substitute for, and do not purport to be an alternative to, revenue, cost of
revenue, operating expense or any other performance measure derived in accordance with GAAP. Silver Spring may consider whether
other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.
Billings represents amounts invoiced for products for which ownership, typically evidenced by title and risk of loss, has transferred or
services that have been provided to the customer, and for which payment is expected to be made in accordance with normal payment
terms. Billings excludes amounts for undelivered products, services to be performed in the future, and amounts paid or payable to
customers. Billings are initially recorded as deferred revenue and are then recognized as revenue when all revenue recognition criteria has
been met under Silver Spring’s accounting policies as described in Silver Spring’s filings with the Securities and Exchange Commission.
Silver Spring reconciles revenue to billings by adding revenue to the change in deferred revenue in a given period.
Cost of billings represents the cost associated with products and services that have been delivered to the customer, excluding stock-
based compensation, amortization of intangibles and acquisition-related charges. Cost of product shipments for which revenue is not
recognized in the period incurred is recorded as deferred cost of revenue. Deferred cost of revenue is expensed in the statement of
operations as cost of revenue when the corresponding revenue is recognized. Costs related to services are expensed in the period
incurred. Silver Spring reconciles cost of revenue to cost of billings by adding cost of revenue and the change in deferred cost of revenue,
less stock-based compensation, amortization and impairment of intangibles and acquisition-related charges, included in cost of revenue in
a given period.
Non-GAAP operating expense consists of research and development, sales and marketing, and general and administrative expenses,
excluding amortization and impairment of intangible assets, stock-based compensation, acquisition-related charges, restructuring and legal
settlements.
Total backlog represents future product and service billings that Silver Spring expects to generate pursuant to contracts entered into with
its utility customers and meter manufacturers. Total backlog includes order backlog, which represents future billings for open purchase
orders and other firm commitments.
Non-GAAP and Other Financial Measures
© 2017 Silver Spring Networks. All rights reserved. 25
GAAP to Non-GAAP Reconciliation
Revenue / Billings by Type
$000's, except percentages YoY% YoY%
REVENUE AND BILLINGS BY TYPE Change Change
Revenue:
Product $ 143,202 $ 40,386 -72% $ 129,333 $ 353,041 $ 193,618 -45%
Services
Managed services and SaaS (a) 37,142 15,581 -58% 35,220 71,947 65,309 -9%
Professional services (a) 18,903 10,283 -46% 26,735 64,571 52,081 -19%
Total services 56,045 25,864 -54% 61,955 136,518 117,390 -14%
Total revenue $ 199,247 $ 66,250 -67% $ 191,288 $ 489,559 $ 311,008 -36%
% Product 72% 61% 68% 72% 62%
% Services 28% 39% 32% 28% 38%
Change in deferred revenue:
Product $ (95,194) $ 7,155 $ 64,691 $ (167,458) $ (4,334)
Services
Managed services and SaaS (22,896) 1,427 9,284 (19,531) (4,762)
Professional services (6,169) 2,867 11,445 (20,646) (7,309)
Total services (29,065) 4,294 20,729 (40,177) (12,071)
Total change in deferred revenue $ (124,259) $ 11,449 $ 85,420 $ (207,635) $ (16,405)
Billings
Product $ 48,008 $ 47,541 -1% $ 194,024 $ 185,583 $ 189,284 2%
Services
Managed services and SaaS (a) 14,246 17,008 19% 44,504 52,416 60,547 16%
Professional services (a) 12,734 13,150 3% 38,180 43,925 44,772 2%
Total services 26,980 30,158 12% 82,684 96,341 105,319 9%
Total Billings $ 74,988 $ 77,699 4% $ 276,708 $ 281,924 $ 294,603 4%
% Product 64% 61% 70% 66% 64%
% Services 36% 39% 30% 34% 36%
(a)
Full Year
2014
Certain amounts have been reclassif ied in 2014 from Professional services to Managed services and SaaS related to product support w hich is recurring in nature to conform to current period presentation.
Full Year Full Year
2015 2016
Q4
2015 2016
Q4
2015-2016
© 2017 Silver Spring Networks. All rights reserved. 26
GAAP to Non-GAAP Reconciliation
Revenue / Billings by Solution
$000's, except percentages YoY% YoY%
REVENUE AND BILLINGS BY SOLUTION Change Change
Revenue:
Advanced metering infrastructure $ 181,892 $ 57,148 -69% $ 167,506 $ 421,813 $ 269,046 -36%
New solutions 17,355 9,102 -48% 23,782 67,746 41,962 -38%
Total revenue $ 199,247 $ 66,250 -67% $ 191,288 $ 489,559 $ 311,008 -36%
% Advanced metering infrastructure 91% 86% 88% 86% 87%
% New solutions 9% 14% 12% 14% 13%
Change in deferred revenue
Advanced metering infrastructure $ (123,525) $ 2,528 $ 67,922 $ (195,743) $ (27,777)
New solutions (734) 8,921 17,498 (11,892) 11,372
Total change in deferred revenue $ (124,259) $ 11,449 $ 85,420 $ (207,635) $ (16,405)
Billings
Advanced metering infrastructure $ 58,367 $ 59,676 2% $ 235,428 $ 226,070 $ 241,269 7%
New solutions 16,621 18,023 8% 41,280 55,854 53,334 -5%
Total Billings $ 74,988 $ 77,699 4% $ 276,708 $ 281,924 $ 294,603 4%
% Advanced metering infrastructure 78% 77% 85% 80% 82%
% New solutions 22% 23% 15% 20% 18%
Full Year
2014 2015 2016
Full Year Full YearQ4 Q4
2015 2016
2015-2016
© 2017 Silver Spring Networks. All rights reserved. 27
GAAP to Non-GAAP Reconciliation
Revenue / Billings by Geography
$000's, except percentages YoY% YoY%
REVENUE AND BILLINGS BY GEOGRAPHY Change Change
Revenue:
United States $ 177,896 $ 53,087 -70% $ 425,951 $ 260,229 -39%
International 21,351 13,163 -38% 63,608 50,779 -20%
Total revenue $ 199,247 $ 66,250 -67% $ 489,559 $ 311,008 -36%
% United States 89% 80% 87% 84%
% International 11% 20% 13% 16%
Change in deferred revenue
United States $ (116,859) $ 8,880 $ (188,880) $ (19,233)
International (7,400) 2,569 (18,755) 2,828
Total change in deferred revenue $ (124,259) $ 11,449 $ (207,635) $ (16,405)
Billings
United States $ 61,037 $ 61,967 2% $ 237,071 $ 240,996 2%
International 13,951 15,732 13% 44,853 53,607 20%
Total Billings $ 74,988 $ 77,699 4% $ 281,924 $ 294,603 4%
% United States 81% 80% 84% 82%
% International 19% 20% 16% 18%
Full Year Full Year
2015 20162015 2016
Q4 Q4
© 2017 Silver Spring Networks. All rights reserved. 28
GAAP to Non-GAAP Reconciliation
Cost of Revenue / Cost of Billings
$000's
Cost of
Revenue
Change in
Deferred Cost of
Revenue (a)
Stock-based
Compensation
Amortization of
Intangible
Assets
Acquisition-
Related Costs Cost of Billings
Cost of Revenue / Cost of Billings:
Product 19,915$ 3,177$ (455)$ (79)$ -$ 22,558$
Services
Managed services and SaaS 9,762 - (680) - - 9,082
Professional services 8,156 - (810) - (15) 7,331
Total services 17,918$ -$ (1,490)$ -$ (15)$ 16,413$
Total Cost of Revenue / Cost of Billings 37,833$ 3,177$ (1,945)$ (79)$ (15)$ 38,971$
Cost of
Revenue
Change in
Deferred Cost of
Revenue (a)
Stock-based
Compensation
Amortization of
Intangible
Assets
Acquisition-
Related Costs Cost of Billings
Cost of Revenue / Cost of Billings:
Product 83,903$ (56,982)$ (250)$ (259)$ -$ 26,412$
Services
Managed services and SaaS 7,592 - (271) - - 7,321
Professional services 6,407 - (485) - (15) 5,907
Total services 13,999$ -$ (756)$ -$ (15)$ 13,228$
Total Cost of Revenue / Cost of Billings 97,902$ (56,982)$ (1,006)$ (259)$ (15)$ 39,640$
(a)
Three Months Ended December 31, 2016
Amounts presented net of foreign currency translation.
Three Months Ended December 31, 2015
© 2017 Silver Spring Networks. All rights reserved. 29
GAAP to Non-GAAP Reconciliation
Operating Expenses / Non-GAAP Operating Expenses
$000's
Operating
Expenses
Stock-based
Compensation
Amortization
and
Impairment of
Intangible
Assets
Restructuring &
Litigation
Acquisition-
Related Costs
Non-GAAP
Operating
Expenses
Operating Expenses / Non-GAAP Operating Expenses:
Research and development 19,090$ (2,450)$ -$ -$ (311)$ 16,329$
Sales and marketing 10,809 (1,152) (105) - (66) 9,486
General and administrative 12,049 (2,423) (8) - (117) 9,501
Impairment of intangible assets - - - - - -
Restructuring - - - - - -
Total Operating Expenses / Non-GAAP Operating Expenses 41,948$ (6,025)$ (113)$ -$ (494)$ 35,316$
Operating
Expenses
Stock-based
Compensation
Amortization
and
Impairment of
Intangible
Assets
Restructuring &
Litigation
Acquisition-
Related Costs
Non-GAAP
Operating
Expenses
Operating Expenses / Non-GAAP Operating Expenses:
Research and development 13,714$ (1,277)$ -$ -$ (311)$ 12,126$
Sales and marketing 7,343 (665) (155) - (64) 6,459
General and administrative 14,483 (1,994) (8) (3,595) (116) 8,770
Impairment of intangible assets - - - - - -
Restructuring 60 - - (60) - -
Total Operating Expenses / Non-GAAP Operating Expenses 35,600$ (3,936)$ (163)$ (3,655)$ (491)$ 27,355$
Three Months Ended December 31, 2016
Three Months Ended December 31, 2015
© 2017 Silver Spring Networks. All rights reserved. 30
GAAP to Non-GAAP Reconciliation
Cost of Revenue / Cost of Billings$000's
Cost of
Revenue
Change in
Deferred Cost of
Revenue (b)
Stock-based
Compensation
Amortization of
Intangible
Assets
Acquisition-
Related Costs Cost of Billings
Cost of Revenue / Cost of Billings:
Product 106,583$ (14,551)$ (1,737)$ (522)$ -$ 89,773$
Services
Managed services and SaaS 36,772 - (2,415) - - 34,357
Professional services 29,454 - (2,592) - (61) 26,801
Total services 66,226$ -$ (5,007)$ -$ (61)$ 61,158$
Total Cost of Revenue / Cost of Billings 172,809$ (14,551)$ (6,744)$ (522)$ (61)$ 150,931$
Cost of
Revenue
Change in
Deferred Cost of
Revenue (b)
Stock-based
Compensation
Amortization of
Intangible
Assets
Acquisition-
Related Costs Cost of Billings
Cost of Revenue / Cost of Billings:
Product 202,430$ (97,274)$ (1,288)$ (1,041)$ -$ 102,827$
Services
Managed services and SaaS 31,663 - (2,037) - - 29,626
Professional services 29,723 - (2,810) - (100) 26,813
Total services 61,386$ -$ (4,847)$ -$ (100)$ 56,439$
Total Cost of Revenue / Cost of Billings 263,816$ (97,274)$ (6,135)$ (1,041)$ (100)$ 159,266$
Cost of
Revenue
Change in
Deferred Cost of
Revenue (b)
Stock-based
Compensation
Amortization of
Intangible
Assets
Acquisition-
Related Costs Cost of Billings
Cost of Revenue / Cost of Billings:
Product 77,158$ 56,767$ (1,837)$ (417)$ -$ 131,671$
Services
Managed services and SaaS (a) 25,800 - (919) - - 24,881
Professional services (a) 31,993 - (4,853) - - 27,140
Total services 57,793$ -$ (5,772)$ -$ -$ 52,021$
Total Cost of Revenue / Cost of Billings 134,951$ 56,767$ (7,609)$ (417)$ -$ 183,692$
(a)
(b)
Certain amounts have been reclassif ied in 2014 from Professional services to Managed services and SaaS related to product support w hich
is recurring in nature to conform to current period presentation.
Twelve Months Ended December 31, 2016
Twelve Months Ended December 31, 2015
Twelve Months Ended December 31, 2014
Amounts presented net of foreign currency translation.
© 2017 Silver Spring Networks. All rights reserved. 31
GAAP to Non-GAAP Reconciliation
Operating Expenses / Non-GAAP Operating Expenses
$000's
Operating
Expenses
Stock-based
Compensation
Amortization
and
Impairment of
Intangible
Assets
Restructuring &
Litigation
Acquisition-
Related Costs
Non-GAAP
Operating
Expenses
Operating Expenses / Non-GAAP Operating Expenses:
Research and development 70,673$ (9,309)$ -$ -$ (1,243)$ 60,121$
Sales and marketing 39,406 (3,652) (626) - (262) 34,866
General and administrative 45,801 (10,104) (33) - (477) 35,187
Impairment of intangible assets 2,204 - (2,204) - - -
Restructuring 39 - - (39) - -
Total Operating Expenses / Non-GAAP Operating Expenses 158,123$ (23,065)$ (2,863)$ (39)$ (1,982)$ 130,174$
Operating
Expenses
Stock-based
Compensation
Amortization
and
Impairment of
Intangible
Assets
Restructuring &
Litigation
Acquisition-
Related Costs
Non-GAAP
Operating
Expenses
Operating Expenses / Non-GAAP Operating Expenses:
Research and development 61,295$ (8,060)$ -$ -$ (451)$ 52,784$
Sales and marketing 33,452 (4,105) (601) - (87) 28,659
General and administrative 46,372 (8,179) (32) (3,595) (1,913) 32,653
Impairment of intangible assets - - - - - -
Restructuring 1,671 - - (1,671) - -
Total Operating Expenses / Non-GAAP Operating Expenses 142,790$ (20,344)$ (633)$ (5,266)$ (2,451)$ 114,096$
Twelve Months Ended December 31, 2015
Twelve Months Ended December 31, 2016