Anaplan PLAN reported fourth-quarter fiscal 2020 adjusted loss of 7 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 11 cents and the year-ago quarter’s loss of 13 cents.
Revenues of $98.2 million beat the Zacks Consensus Estimate by 1.3% and increased 42% year over year.
Subscription revenues (91.1% of total revenues) surged 50% year over year to $89.5 million, driven by growing subscriber count.
Revenues from Professional services (8.9% of total revenues) declined 8.6% year over to $8.7 million.
The company’s dollar-based expansion rate was 122%, aided by solid demand for the company’s Connected Planning solution.
Anaplan, Inc. Price, Consensus and EPS Surprise
Anaplan, Inc. price-consensus-eps-surprise-chart | Anaplan, Inc. Quote
Notably, calculated billings in fiscal fourth quarter were $126 million, up 25% year over year. However, billings growth was lower than expected due to some changes in management that affected alignment around some key opportunities.
Anaplan acquired new customers at a steady pace, ending the quarter with more than 1400 total customers across a wide range of industries. This was aided by increased usage of its solutions in adjacent business areas like finance, supply chain and marketing.
Moreover, the company is now serving 353 customers with more than $250K in annual recurring revenues, up 42% on a year-over-year basis.
Anaplan’s partners also continue to add significant capacity for selling and delivering its solutions. In the quarter under review, more than 500 new certified Anaplan resources were added into the market by partners that brings the total to over 2,000.
Total operating costs increased 36.5% year over year to $111.6 million.
General & administrative expenses increased 14.4% to $21.7 million, while sales and marketing expenses rose 39.4% to $69.5 million. The rise was primarily caused by increased hiring of salespersons.
Additionally, research and development expenses surged 57.9% year over year to $20.4 million.
Anaplan’s non-GAAP operating loss was $11 million compared with a loss of $15.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
Total cash and cash equivalents as of Jan 31, 2020, were $309.9 million compared with $310.8 million as Oct 31, 2019.
Non-GAAP free cash outflow was $6.1 million during the quarter.
For first-quarter fiscal 2021, Anaplan expects revenues in the range of $102-$103 million. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $103.1 million, which indicates growth of 36% from the year-ago quarter’s reported figure.
Non-GAAP operating margin is expected between negative 17.5% and 18.5%.
For fiscal 2021, Anaplan raised revenue guidance in the range of $463-$467 million compared with the previous range of $455-$460 million.
The consensus mark for fiscal revenues is pegged at $462.7 million, which indicates year-over-year growth of 33.4%.
Non-GAAP operating margin is expected between negative 12.5% and 13.5%.
Zacks Rank & Stocks to Consider
Anaplan currently carries a Zacks Rank #3 (Hold).
Dropbox, Inc. DBX, Alteryx, Inc. AYX and ManTech International Corporation MANT are some better-ranked stocks in the broader computer and technology sector. Dropbox and ManTech sport a Zacks Rank #1 (Strong Buy), while Alteryx carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Dropbox, Alteryx and ManTech is currently pegged at 20.2%, 50.6% and 8%, respectively.
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