REDWOOD CITY, Calif. — (BUSINESS WIRE) — August 5, 2014 — Model N, Inc., (NYSE: MODN), the leading revenue management solutions provider to the life science and technology industries, today announced financial results for the third quarter of fiscal 2014, which ended June 30, 2014.

“We made continued progress across a number of our strategic initiatives during the quarter,” said Zack Rinat, Founder, Chairman, and Chief Executive Officer at Model N. “I am pleased with the improvements we have made in both the consistency of our business and our sales execution throughout the year. These trends have given us increased confidence in our outlook, and we look forward to returning the company to growth in Fiscal 2015.”

Third Quarter Fiscal 2014 Financial Highlights:

• Total Revenues: Total revenues were $19.3 million, compared to $27.2 million for the third quarter of fiscal 2013.
• Gross Profit: Gross profit was $10.2 million, compared to $14.9 million for the third quarter of fiscal 2013. Non-GAAP gross profit was $10.6 million, compared to $15.5 million for the third quarter of fiscal 2013.
• Loss from operations: GAAP loss from operations was $(6.7) million, compared to income from operations of $1.7 million for the third quarter of fiscal 2013. Non-GAAP loss from operations was $(3.9) million, compared to income from operations of $3.7 million for the third quarter of fiscal 2013.
• Net loss: GAAP net loss was $(6.8) million, compared to net income of $1.5 million for the third quarter of fiscal 2013. GAAP diluted net loss per share attributed to common stockholders was $(0.27) based upon weighted average shares outstanding of 24.8 million, as compared to net income per share of $0.06 for the third quarter of fiscal 2013 based upon weighted average shares outstanding of 26.1 million.
• Non-GAAP net loss: Non-GAAP net loss was $(4.0) million, as compared to net income of $3.6 million for the third quarter of fiscal 2013. Non-GAAP diluted net loss per share was $(0.16) based upon weighted average shares outstanding of 24.8 million, as compared to diluted net income per share of $0.14 for the third quarter of fiscal 2013 based upon weighted average shares outstanding of 26.1 million.
• Adjusted EBITDA: Adjusted EBITDA was $(3.1) million, compared to $4.2 million for the third quarter of fiscal 2013.

Use of Non-GAAP Financial Measures

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures, including the reasons management uses each measure, is also included below under the heading "Non-GAAP Financial Measures."

Guidance:

As of August 5, 2014, we are providing guidance for the fourth quarter of fiscal 2014, the full fiscal year ending September 30, 2014, and some preliminary thoughts on the full fiscal year ending September 30, 2015.

Fourth Quarter Fiscal 2014 Guidance:

• Total revenues are expected to be in the range from $19.5 million to $20.0 million,
• Non-GAAP loss from operations is expected to be in the range of ($4.0) to ($4.5) million,
• Non-GAAP net loss per diluted share is expected to be in the range of ($0.16) to ($0.18) based upon weighted average shares outstanding of 25.0 million shares.

Fiscal Year 2014 Guidance:

• Total revenues are expected to be in the range from $81.0 million to $81.5 million,
• Non-GAAP loss from operations is expected to be in the range of ($10.5) to ($11.0) million,
• Non-GAAP net loss per diluted share is expected to be in the range of ($0.45) to ($0.47) based upon weighted average shares outstanding of 24.4 million shares.

Preliminary Fiscal Year 2015 Guidance:

• Total revenue growth in the low to mid teens.
• Non-GAAP loss from operations slightly lower than Fiscal Year 2014 levels.