Amber Road Announces First Quarter 2019 Financial Results

Amber Road, Inc. (NYSE: AMBR), a leading provider of global trade
management (GTM) solutions, today announced its financial results for
the first quarter ended March 31, 2019.

Jim Preuninger, Chief Executive Officer of Amber Road, stated, “I am
very pleased with our results for the first quarter of 2019 with revenue
and profit exceeding the high-end of our guidance. We are taking
advantage of opportunities being created by the increased complexity and
changing conditions in global trade, leveraging the strength of our SaaS
solutions and differentiated Global Knowledge, as well as refinements to
our go-to-market initiatives. We remain focused on building a business
leveraging subscription revenue and continue to believe that we can
return subscription revenue growth to double-digit levels exiting this
year.”

First Quarter 2019 Financial Highlights

Revenue

• Total revenue was $21.1 million, an increase compared to $20.1 million
  for the comparable period of 2018.
• Subscription revenue was $15.8 million, an increase compared to $15.1
  million for the comparable period of 2018.
• Professional services revenue was $5.3 million, an increase compared
  to $5.0 million for the comparable period of 2018.

Operating Income (Loss)

• GAAP operating loss was $(2.8) million, compared to $(5.0) million for
  the comparable period of 2018.
• Non-GAAP adjusted operating income (loss)⁽¹⁾ was $0.3
  million, compared to $(0.7) million for the comparable period of 2018.

Net Loss

• GAAP net loss was $(3.3) million, compared to $(5.4) million for the
  comparable period of 2018.
• GAAP basic and diluted net loss per share was $(0.12), compared to
  $(0.20) for the comparable period of 2018, based on 28.6 million and
  27.6 million basic and diluted weighted average shares outstanding,
  respectively.
• Non-GAAP adjusted net loss⁽¹⁾ was $(0.2) million, compared
  to $(1.2) million for the comparable period of 2018.
• Non-GAAP adjusted net loss per share was $(0.01), compared to $(0.04)
  for the comparable period of 2018, based on 28.6 million and 27.6
  million basic and diluted weighted average shares outstanding,
  respectively.

Adjusted EBITDA

• Adjusted EBITDA was $1.5 million, compared to $0.5 million for the
  comparable period of 2018.

Balance Sheet and Cash Flow

• Cash and cash equivalents at March 31, 2019 were $9.6 million,
  compared to $7.5 million at December 31, 2018.
• Cash provided by operating activities was $3.2 million for the three
  months ended March 31, 2019, compared to cash provided by operating
  activities of $1.4 million for the three months ended March 31, 2018.

A reconciliation of GAAP operating loss and net loss to Non-GAAP
adjusted operating income (loss) and net loss, and of GAAP net loss to
Adjusted EBITDA has been provided in the financial statement tables
included in this press release. An explanation of these measures is also
included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

Based on information available as of May 9, 2019, Amber Road is issuing
guidance for the second quarter and full year 2019. Refer to the
reconciliation of GAAP guidance to non-GAAP guidance tables at the end
of this release for details on non-GAAP adjustments.

We anticipate second quarter and full-year 2019 results to be in the
following ranges:

Endnote:

Conference Call Information

Amber Road will host a conference call on Thursday, May 9, 2019 at 5:00
p.m. Eastern Time (ET) to discuss the Company’s first quarter financial
results and its business outlook. To access this call, dial
(800)-263-0877 (domestic) or (323)-994-2131 (international). The
conference ID is 7966307. Additionally, a live webcast of the conference
call will be available in the “Investor Relations” section of the
Company’s web site at www.AmberRoad.com.

Following the conference call, a replay will be available until May 16,
2019 at (844)-512-2921 (domestic) or (412)-317-6671 (international). The
replay pass code is 7966307. An archived webcast of this conference call
will also be available in the “Investor Relations” section of the
Company’s website at www.AmberRoad.com.

About Amber Road

Amber Road’s (NYSE: AMBR) mission is to dramatically transform the way
companies conduct global trade. As a leading provider of cloud-based
global trade management (GTM) software, trade content and training, we
help companies all over the world create value through their global
supply chain by improving margins, achieving greater agility and
lowering risk. We do this by creating a digital model of the global
supply chain that enables collaboration between buyers, sellers and
logistics companies. We replace manual and outdated processes with
comprehensive automation for global trade activities, including
sourcing, supplier management, production tracking, transportation
management, supply chain visibility, import and export compliance, and
duty management. We provide rich data analytics to uncover areas for
optimization and deliver a platform that is responsive and flexible to
adapt to the ever-changing nature of global trade.

Non-GAAP Financial Measures

To provide investors with additional information regarding our financial
results, Amber Road has provided non-GAAP financial measures and
non-GAAP guidance within this press release including non-GAAP adjusted
operating and net income (loss) and adjusted EBITDA, financial measures
that are not calculated in accordance with generally accepted accounting
principles, or GAAP. Provided below is a reconciliation of GAAP
operating and net loss to non-GAAP adjusted operating and net income
(loss), and net loss to adjusted EBITDA. EBITDA consists of net loss
plus depreciation and amortization, interest expense (income) and income
tax expense. Adjusted EBITDA consists of EBITDA plus stock-based
compensation and proxy contest costs. Amber Road has included these
non-GAAP measures in this press release because it assists in comparing
performance on a consistent basis across reporting periods, as it
removes from operating results the impact of the Company’s capital
structure. Amber Road believes these non-GAAP measures are useful to an
investor in evaluating its operating performance because they are often
used by the financial community to measure a company’s operating
performance without regard to items such as depreciation and
amortization, which can vary depending upon accounting methods and the
book value of assets, and to present a meaningful measure of performance
exclusive of its capital structure and the method by which assets were
acquired.

Amber Road’s use of these non-GAAP measures has limitations as an
analytical tool, and you should not consider it in isolation or as a
substitute for analysis of its results as reported under GAAP. Some of
these limitations are:

• although depreciation and amortization are non-cash charges, the
  assets being depreciated and amortized may have to be replaced in the
  future, and these non-GAAP measures do not reflect cash capital
  expenditure requirements for such replacements or for new capital
  expenditure requirements;
• these non-GAAP measures do not reflect changes in, or cash
  requirements for, working capital needs;
• these non-GAAP measures do not reflect the potentially dilutive impact
  of equity-based compensation;
• these non-GAAP measures do not reflect interest or tax payments that
  may represent a reduction in cash available; and
• other companies, including companies in Amber Road’s industry, may
  calculate adjusted EBITDA differently, which reduces its usefulness as
  a comparative measure.

Because of these and other limitations, you should consider these
non-GAAP measures together with other GAAP-based financial performance
measures, including various cash flow metrics, net loss and other GAAP
results. A reconciliation of GAAP operating and net loss to non-GAAP
adjusted operating and net loss, and adjusted EBITDA has been provided
in the financial statement tables included in this press release.

Cautionary Language Concerning Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are not historical facts, but instead
represent only our current expectations and beliefs, and therefore,
contain risks and uncertainties about future events or our future
financial performance, including, but not limited to, achieving revenue
from bookings, closing business from the sales pipeline, new customer
deployments and maintaining these relationships, the ability to reduce
operating losses and use of cash, and attaining profitability. In some
cases, you can identify forward-looking statements by terminology such
as “may,” “will,” “could,” “should,” “expect,” “intend,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,” or
“continue,” and similar expressions, whether in the negative or
affirmative. These statements are only predictions and may be
inaccurate. Actual events or results may differ materially. In
evaluating these statements, you should specifically consider various
factors, including the risks outlined in our filings with the Securities
and Exchange Commission (SEC), including, without limitation, our
annual, periodic and current SEC reports. These factors may cause our
actual results to differ materially from any forward-looking statement.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, our future results, levels of
activity, performance or achievements may differ from our expectations.
Other than as required by law, we do not undertake to update any of the
forward-looking statements after the date of this press release, even
though our situation may change in the future.

Based on information available as of May 9, 2019, the following tables
show 2019 GAAP guidance reconciled to non-GAAP guidance for the second
quarter and full year 2019 as indicated below (numbers in millions,
except per share data):

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