CyberSource Corporation (NASDAQ: CYBS), a leading provider of electronic payment and risk management solutions, today announced financial results for its second quarter ended June 30, 2009.
- Second quarter revenue was $62.9 million, a 13% increase compared to $55.7 million in the same period the previous year.
- On a GAAP basis, net income for the second quarter of 2009 was $2.2 million and earnings per share was $0.03, compared to net loss of ($45,000) and breakeven earnings per share in the second quarter of 2008.
- Non-GAAP net income for the second quarter was $13.8 million, a 22% increase compared to $11.3 million for the second quarter of 2008. Non-GAAP earnings per share for the second quarter was $0.19, a 19% increase compared to $0.16 earnings per share for the second quarter of 2008. Non-GAAP net income excludes stock-based compensation expense, the non-cash portion of the tax provision, depreciation and amortisation expense, and certain non-recurring items. A reconciliation of certain historical GAAP to non-GAAP measures is attached.
- During the second quarter, CyberSource processed a record 579 million billable transactions, a 29% increase over the same period the previous year. The value of transactions processed was $28.6 billion, a 4% increase over Q2 2008.
- CyberSource signed a record 38,000 new customers in the quarter, increasing the installed base to approximately 273,000 active customers.
"Our very strong results this quarter reflect our continued market share gains, our successful expansion internationally, and the resilience of the eCommerce market in a difficult economy. Despite economic headwinds, we processed record transaction volumes of 579 million, a 29% increase over the prior year, and increased customer signups by 47% over the prior year. I am very pleased with how both our small business and enterprise businesses are performing. Our significant growth in transaction volumes and new customer signups clearly demonstrates that our value proposition is resonating with customers," said Bill McKiernan, Chairman and Chief Executive Officer of CyberSource. "The strong growth in transaction volumes helped increase our GAAP gross margin by 300 basis points to 54% in the second quarter of 2009, compared to the second quarter of 2008, and we ended the quarter with $80.7 million in net cash."
- Customers: CyberSource added approximately 38,000 new customers in the quarter, bringing its installed base of customers to approximately 273,000. New enterprise customer wins this quarter include: Air Jamaica, Charming Shoppes, LexisNexis, PayDay Advance Loans, and Tata Communications. Existing customers that added new services or renewed agreements during the quarter include: AF Services, Columbia Sportswear USA Corporation, PC Connection, RSA Security, and Thompson and Company.
- International: CyberSource continues to drive strong growth outside the U.S. CyberSource's European operations processed a record 146.3 million transactions in the second quarter, an increase of 67% over the same period last year. The Company's European business is comprised of revenue generated by customers domiciled outside the US, and represented about 7% of revenue in the second quarter.
- Global acquiring: CyberSource generated $19.3 million of global acquiring revenue during the second quarter, up 2% over the immediately preceding quarter. CyberSource added approximately 850 new acquiring customers during the quarter, and now has approximately 5,900 global acquiring customers.
- Channel Partners: CyberSource's partner programme of over 4,300 resellers and affiliate partners continues to be a major driver for small business leads, and provides a broad base of partners selling CyberSource services every day. In the second quarter, CyberSource signed over 400 new ISO and affiliate resellers.
During the second quarter, we did not repurchase any shares of our common stock.
Guidance for the third quarter and full year 2009
CyberSource is providing guidance for the third quarter of 2009 and full year 2009 based on information available as of July 23, 2009. We assume no duty to update these numbers at any time.
For the third quarter ending September 30, 2009:
- Total revenue is expected to be between $63.5 and $64.0 million.
- The company expects to process between 580 and 585 million billable transactions.
- GAAP gross profit is expected to be approximately $33.4 million, while GAAP operating expenses are expected to be approximately $31.8 million. The company expects to record GAAP net income in the third quarter of approximately $1.0 million and $0.01 earnings per share based on a weighted average share count of 73 million shares.
- Non-GAAP net income for the third quarter is expected to be approximately $12.8 million and non-GAAP earnings per share to be $0.18 based on a weighted average share count of 73 million shares.
For the full year 2009:
- Total revenue for 2009 is expected to be between $260.0 and $263.0 million, compared to prior guidance of between $258.0 and $263.0 million.
- GAAP net income for 2009 is expected to be between $6.5 and $7.0 million, compared to prior guidance of between $5.3 and $5.8 million.
- GAAP earnings per share is expected to be between $0.09 and $0.10 per share, based on a weighted average share count of 73 million shares, compared to prior guidance of between $0.07 and $0.08 per share.
- Non-GAAP net income for the full year 2009 is expected to be between $54.0 and $55.0 million, compared to prior guidance of $52.5 and $54.0 million. Non-GAAP earnings per share is expected to be between $0.74 and $0.75, based on a weighted average share count of 73 million shares, compared to prior guidance of between $0.72 and $0.74.