This Current Report on Form 8-K (this “Report”) is being furnished by BroadSoft, Inc. (the “Company”) to update its expectations regarding the Company’s long-term margin target model and specifically its non-GAAP gross margin expectations for its BroadCloud SaaS business. The Company continues to believe that long-term BroadCloud non-GAAP gross margins may be between 70%-80%.

A reconciliation of non-GAAP gross margins to a GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of stock-based compensation expense and amortization of intangibles. We expect the variability of such charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Forward-Looking Statements

The statements in this Report relating to the Company’s expectations regarding certain of its gross margins are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The actual margin rate will depend on the Company’s future operating performance, which are subject to known and unknown risks and uncertainties, including, but not limited to those factors contained in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on February 23, 2017, and in the Company’s other filings with the SEC. All information in this Report is as of February 23, 2017. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in the Company’s expectations.

About BroadSoft, Inc. (NASDAQ:BSFT)

BroadSoft, Inc. is a provider of software and services that enable telecommunications service providers to deliver hosted, cloud-based Unified Communications (UC) to their enterprise customers. The Company offers service providers two deployment options, software and software-as-a-service (SaaS), to enable them to offer UC services to their enterprise customers. Hosted UC enables the delivery of Private Branch Exchange (PBX) features without the need for premise-based equipment. Hosted UC can be delivered through service providers using their own Internet protocol (IP)-based networks, as well as over the public Internet. In addition to voice telephony, UC offers additional features, such as full integration with mobile devices, conferencing, instant messaging and presence (IM&P) and Web collaboration. Its Hosted UC products enable service providers to offer enterprises IP PBX and UC features through a hosted service rather than through premise-based equipment, such as PBXs.

BroadSoft, Inc. (NASDAQ:BSFT) Recent Trading Information

BroadSoft, Inc. (NASDAQ:BSFT) closed its last trading session down -3.95 at 41.90 with 1,103,388 shares trading hands.