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EX - 99.1 2 modnq221ex991.htm EX - 99.1 MODEL N ANNOUNCES SECOND QUARTER FISCAL YEAR 2021 FINANCIAL RESULTS Exceeds Q2 Expectations and Raises Full Fiscal Year 2021 Guidance SAN MATEO , Calif . - May 10 , 2021 - Model N , Inc. ( NYSE : MODN ) , the leader in cloud revenue management solutions , today announced financial results for the second quarter fiscal year 2021 ended March 31 , 2021 . Exhibit 99.1 " In the second quarter , we executed well , most notably with large SaaS transitions and expansions within our customer base . Business Services , which we acquired from Deloitte in the first quarter , made significant contributions to our results , and we are already achieving operating synergies and expect to achieve continued growth throughout 2021 , " said Jason Blessing , president and chief executive officer of Model N. " I believe that our strategic roadmap , our focus on customer success , and our ability to serve our customers with a powerful combination of software and business services will position us for continued success . " Recent Highlights Life Sciences Leaders Continue Transition to Model N Revenue Cloud - During the quarter , two global Life Sciences customers , including Novartis , one of the top five largest pharmaceutical companies in the world , and a top 5 global med tech company moved forward with their plans to transition to Model N Revenue Cloud for Life Sciences . Throughout the past year , many companies prioritized their cloud - first strategies and included Model N Revenue Cloud in their digital transformations . Responding to industry changes , including value - based pricing and requirements for government rebates , Model N customers may benefit from new product innovation and the ability to proactively respond to regulatory changes in their marketplaces . Model N Professional Services Sets Industry Standards by Driving Go - Lives at New and Existing Customers - Model N Professional Services teams continued to implement Model N solutions for Life Sciences and High Tech customers exceeding internal on - time and on - budget objectives . During the quarter , the team completed SaaS transitions for existing customers and implementation projects with new customers , adding innovative solutions that provide visibility and scalability , integrate with CRMs and ERPs , and maximize customers ' profits . Adoption of Model N's Global Products in EMEA Continues – During the quarter , Model N signed a contract with a global biotechnology company that will utilize Model N’s Global Price Management and International Reference Pricing solutions to better compete in multiple European countries . Model N currently works with several companies in Europe , including nine of the top 15 European pharmaceutical companies , six leading medical device companies and many European divisions of the world's leading high tech companies to bring them revenue management solutions that help them to win in their marketplaces . Following the recently announced partnership with Global Pricing Innovations , a leader in analytics and innovative solutions for biopharma pricing and market access , Model N will be able to better serve its customers with global pricing strategies . Model N Adds High Tech Innovator to Its Customer Base – In the second quarter , Targus , a multinational maker of innovative mobile computing accessories , signed an agreement with the company as a first - time user of Model N Revenue Cloud for High Tech . By using these solutions , we believe that customers can improve their win probability , better manage incentive and rebate programs , and reap the benefits of accurate , actionable channel data . Second Quarter 2021 Financial Highlights Revenues : Total revenues were $ 48.2 million , an increase of 21 % from the second quarter of fiscal year 2020. Subscription revenues were $ 35.9 million , an increase of 24 % from the second quarter of fiscal year 2020. Business Services , which we acquired from Deloitte , contributed $ 6.5 million in total revenues for the second quarter of fiscal year 2021 . Gross Profit : Gross profit was $ 24.8 million , an increase of 6 % from the second quarter of fiscal year 2020. Gross margin was 51 % compared to 59 % for the second quarter of fiscal year 2020. Non - GAAP gross profit was $ 27.4 million , an increase of 10 % from the second quarter of fiscal year 2020. Non - GAAP gross margin was 57 % compared to 62 % for the second quarter of fiscal year 2020. Subscription gross margin was 62 % compared to 70 % for the second quarter of fiscal year 2020. Non - GAAP subscription gross margin was 66 % compared to 72 % for the second quarter of 1