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EX - 99.1 2 modnq121ex991.htm EX - 99.1 MODEL N ANNOUNCES FIRST QUARTER FISCAL YEAR 2021 FINANCIAL RESULTS Total Revenues of $ 42.7 Million , up 11 % Year - over - Year ; Subscription Revenues of $ 31.4 Million , up 12 % Year - over - Year SAN MATEO , Calif . Feb. 9 , 2021 - Model N , Inc. ( NYSE : MODN ) , the leader in cloud revenue management solutions , today announced financial results for the first quarter fiscal year 2021 ended December 31 , 2020 . ● " Our first quarter results exceeded expectations across every metric , and we achieved another quarter of record revenue , " said Jason Blessing , president and chief executive officer of Model N. “ Looking ahead , I am even more excited about Model N's future . We believe our recently completed acquisition of Deloitte's pricing and contracting solutions business will bolster our already strong foundation , significantly expand our addressable market and enable even more opportunities for success in fiscal year 2021 and beyond . With this acquisition , we added significant Life Sciences talent , customers , and a purpose - built technology to our already formidable company , making the new Model N an even more valued partner to the customers we serve . " Recent Highlights Exhibit 99.1 Top Life Sciences Companies Pursue Cloud - First Strategies with SaaS Transitions - During the quarter , global Life Sciences customers Johnson & Johnson and Fresenius agreed to transition from on - premise versions of revenue management to Model N Revenue Cloud for Life Sciences . We believe the move to the cloud will give these industry leaders the agility to adapt quickly to governmental and other commercial changes as well as the flexibility and productivity improvements required by global businesses . The transition to Model N Revenue Cloud is an important part of many companies ' digital - transformation strategies . A Record Number of Companies Go - Live with Model N Solutions Model N Life Sciences and High Tech customers implemented Model N solutions at record levels with 20 projects going live in the quarter . These projects included launching new products like Validata and Intelligence within existing customers , rolling out solutions in new geographies , and upgrading customers to current versions of Model N solutions . Despite the continued remote working environment , Model N's professional services teams were able to continue their impressive record of on time and on budget delivery . Model N Acquires Deloitte's Pricing and Contracting Services Business - At the end of the first quarter , Model N acquired the pricing and contracting services business and its underlying technology from Deloitte & Touche LLP . We believe the acquisition will expand Model N's addressable market and allow the company to better serve the broader Life Sciences market by adding software plus expert services to Model N's industry - leading solutions . Through the acquisition , the company added new Life Sciences talent , customers , and a purpose - built technology that complement Model N and increased its value to its customers . Model N Announces New Chief Financial Officer – In January , technology veteran John Ederer joined Model N as its new chief financial officer . Ederer brings 28 years of financial leadership to the company with high - growth companies including K2 Inc. , MobileIron , TIBCO Software , Concur Technologies , SAP Business Objects and others . With his extensive experience leading finance departments and partnering with sales and product teams , Ederer will be a key member of Model N's executive team and will help shape the company in its next stage of growth . First Quarter 2021 Financial Highlights Revenues : Total revenues were $ 42.7 million , an increase of 11 % from the first quarter of fiscal year 2020. Subscription revenues were $ 31.4 million , an increase of 12 % from the first quarter of fiscal year 2020 . Gross Profit : Gross profit was $ 25.6 million , an increase of 16 % from the first quarter of fiscal year 2020. Gross margin was 60 % compared to 57 % for the first quarter of fiscal year 2020. Non - GAAP gross profit was $ 27.1 million , an increase of 15 % from the first quarter of fiscal year 2020. Non - GAAP gross margin was 63 % compared to 61 % for the first quarter of fiscal year 2020. Subscription gross margin was 71 % compared to 69 % for the first quarter of fiscal year 2020. Non - GAAP subscription gross margin was 74 % compared to 72 % for the first quarter of fiscal year 2020 . 1