KLDiscovery Inc. (“KLDiscovery” or the “Company”), a leading global provider of electronic discovery, information governance and data recovery technology solutions, announced today that revenu...
Autore: Business Wire
Nebula adoption accelerating with Nebula revenue up 29% quarter-over-quarter and 51% year-over- year
EDEN PRAIRIE, Minn.: KLDiscovery Inc. (“KLDiscovery” or the “Company”), a leading global provider of electronic discovery, information governance and data recovery technology solutions, announced today that revenue for the second quarter ended June 30, 2024, was $79.0 million compared to $90.0 million in the second quarter of 2023. Net loss for the second quarter of 2024 was $(25.3) million compared to $(4.7) million in the second quarter of 2023.
EBITDA1 for the second quarter of 2024 was $(0.5) million compared to $18.5 million in the second quarter of 2023. Adjusted EBITDA1 (which excludes stock-based compensation, acquisition financing and transaction costs and other items as described below) for the second quarter of 2024 was $13.3 million compared to $20.1 million in the second quarter of 2023.
As announced on July 8, 2024, KLDiscovery has signed a transaction support agreement (the “TSA”) with its convertible debenture holders, term loan lenders, revolving credit facility lender, and largest shareholder and an exchange agreement with its convertible debenture holders. This represents an important step toward closing a transaction that will significantly reduce the Company’s long-term debt and strengthen its financial position, enabling KLDiscovery to focus on its growth model and investment in market-leading client solutions.
“Our financial results have been solid through this period with consistent revenue in the first two quarters of 2024,” said Christopher Weiler, CEO of KLDiscovery Inc. “Nebula continues to shine and is becoming an even more important component of our overall revenue with revenue growth of 51% year-over-year and 29% quarter-over-quarter. We continue to see increases in data hosted in Nebula and active users using Nebula compared to the same quarter in the prior year.”
Weiler continued, “Last month, we reached a significant milestone with our capital partners that strengthens our balance sheet and will allow us to build upon our long history of excellent client service, which is the industry standard. In our never-ending quest for delivering innovation, later this year we will be adding further customization for Nebula in the regulatory and medical records area.”
| 2023-2024 Quarterly Results | ||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||
| 2023 (unaudited) | 2024 (unaudited) | |||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||||||||||||||||||
| Revenue |
| 90.7 |
|
| 90.0 |
|
| 79.3 |
|
| 85.8 |
|
| 80.2 |
|
| 79.0 |
| ||||||
| Net loss |
| (4.5 | ) |
| (4.7 | ) |
| (11.4 | ) |
| (14.3 | ) |
| (16.9 | ) |
| (25.3 | ) | ||||||
| Net loss per share (basic and diluted) | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.26 | ) | $ | (0.33 | ) | $ | (0.39 | ) | $ | (0.58 | ) | ||||||
| Weighted average outstanding shares (basic and diluted) |
| 42.9 |
|
| 43.0 |
|
| 43.1 |
|
| 43.1 |
|
| 43.1 |
|
| 43.3 |
| ||||||
| EBITDA (Non-GAAP) |
| 18.2 |
|
| 18.5 |
|
| 13.9 |
|
| 12.0 |
|
| 7.4 |
|
| (0.5 | ) | ||||||
| Adjusted EBITDA (Non-GAAP) |
| 20.9 |
|
| 20.1 |
|
| 15.9 |
|
| 17.2 |
|
| 10.6 |
|
| 13.3 |
| ||||||
1 Non-GAAP measure. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below for additional information and a reconciliation to the most directly comparable GAAP measure.
Earnings Conference Call
Management will conduct a conference call at 8:30 AM ET on August 8, 2024, to discuss financial results for the second quarter of 2024. The audio portion of the conference call will be broadcast live over the Internet in the Investors section of KLDiscovery's website https://investors.kldiscovery.com.
To join the conference call by telephone, please register via the following link: KLDiscovery Q2 2024 Financial Results Conference Call
Once registered, you will receive an email with Direct Entry and Registrant ID along with dial-in details. An audio recording of the conference call will be available for replay shortly after the call's completion and will remain available for two weeks following the call. To access the recorded conference call, please dial (800) 770-2030 (from the U.S. and Canada) or (647) 362-9199 (from all other countries) using access code 69657 or visit the Investors section of the KLD website.
| KLDiscovery Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Comprehensive Loss (Unaudited) | ||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 78,969 |
| $ | 90,007 |
| $ | 159,141 |
| $ | 180,666 |
| ||||
| Cost of revenues |
| 40,315 |
|
| 44,995 |
|
| 82,383 |
|
| 88,582 |
| ||||
| Gross profit |
| 38,654 |
|
| 45,012 |
|
| 76,758 |
|
| 92,084 |
| ||||
| Operating expenses | ||||||||||||||||
| General and administrative |
| 27,487 |
|
| 14,599 |
|
| 45,650 |
|
| 31,900 |
| ||||
| Research and development |
| 3,418 |
|
| 3,257 |
|
| 6,774 |
|
| 6,457 |
| ||||
| Sales and marketing |
| 10,354 |
|
| 10,856 |
|
| 21,622 |
|
| 21,247 |
| ||||
| Depreciation and amortization |
| 4,412 |
|
| 4,926 |
|
| 8,788 |
|
| 9,739 |
| ||||
| Total operating expenses |
| 45,671 |
|
| 33,638 |
|
| 82,834 |
|
| 69,343 |
| ||||
| (Loss) Income from operations |
| (7,017 | ) |
| 11,374 |
|
| (6,076 | ) |
| 22,741 |
| ||||
| Other expenses | ||||||||||||||||
| Change in fair value of Private Warrants |
| (19 | ) |
| (317 | ) |
| 13 |
|
| (508 | ) | ||||
| Interest expense |
| 17,750 |
|
| 16,192 |
|
| 35,258 |
|
| 31,962 |
| ||||
| Loss before income taxes |
| (24,740 | ) |
| (4,498 | ) |
| (41,323 | ) |
| (8,711 | ) | ||||
| Income tax provision |
| 560 |
|
| 182 |
|
| 856 |
|
| 477 |
| ||||
| Net loss | $ | (25,300 | ) | $ | (4,680 | ) | $ | (42,179 | ) | $ | (9,188 | ) | ||||
| Other comprehensive (loss) income, net of tax | ||||||||||||||||
| Foreign currency translation |
| (941 | ) |
| (177 | ) |
| (2,853 | ) |
| 648 |
| ||||
| Total other comprehensive (loss) income, net of tax |
| (941 | ) |
| (177 | ) | ||||||||||