BROADSOFT, INC. | Understand Stock

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2017 10-Q, filed Nov 6, 2017. Its latest SEC filing is a SC 13G/A from Feb 14, 2019.

The sections below describe the company as of the FY2016 annual report.

What Did They Do?

Sells software and services that let telecommunications service providers offer cloud-based business communications, collaboration and contact center tools to enterprise customers.

How Did They Make Money?

Service providers pay for perpetual software licenses when the licensed software is delivered, and buy annual maintenance and support that is paid over the maintenance term. For hosted services, customers pay recurring fees based on seats and service, or usage fees based on transactions; professional services are billed by the day or as fixed-fee projects.

FY2016 revenue

Who Were Their Customers?

Telecommunications service providers, including fixed-line, mobile, cable and internet providers, buy directly from BroadSoft or through distribution partners such as equipment vendors, resellers and system integrators.

Customers above 10% of revenue, FY2016

of revenue from one customer

FY2015: no customer at 10% or more of revenue

Did Revenues Turn Into Profits?

Yes. It kept less than a cent of every revenue dollar as net income in FY2016 and turned 15 cents into free cash flow.

Operating income, FY2016

5% of revenue

▲ +2% vs FY2015 ($15.2M, 5%)

Net income, FY2016

0% of revenue

▲ +356% vs FY2015 ($179K, 0%)

Free cash flow, FY2016

15% of revenue

▲ +61% vs FY2015 ($31.9M, 11%)

How Were They Changing?

Since the FY2016 annual report

Latest quarter: Q3 FY2017, the three months to Sep 30, 2017

Revenue: ▲ +9%; vs $84.1M in Q3 FY2016
Net income: ▲ +342% (Loss); vs −$605K in Q3 FY2016

Feb 2, 2018 Cisco completed its acquisition of BroadSoft BroadSoft became a wholly owned Cisco subsidiary, and Cisco requested delisting of BroadSoft shares.
Oct 23, 2017 Cisco agreed to acquire BroadSoft The merger agreement set an all-cash payment of $55 per share; the deal was later completed.

Grew. Revenue grew 2.1x in 4 years, from $164.8M in FY2012 to $341M in FY2016, about 20% a year.

Expanded collaboration products The latest report presents BroadSoft Business as an expanded offering that includes collaboration and contact center applications alongside unified communications; the earlier report describes BroadTouch client applications and UC-One as a bundled UC service.

Who Did They Compete With?

Competes with Ericsson AB, GENBAND, Huawei Technologies, Metaswitch Networks, Nokia, Avaya, Cisco Systems, Microsoft, Mitel Networks, RingCentral, and 8x8