Here's What Key Metrics Tell Us About PowerSchool (PWSC) Q3 Earnings
PowerSchool Holdings (PWSC) reported $182.16 million in revenue for the quarter ended September 2023, representing a year-over-year increase of 12.2%. EPS of $0.24 for the same period compares to $0.21 a year ago.
The reported revenue represents a surprise of +1.59% over the Zacks Consensus Estimate of $179.32 million. With the consensus EPS estimate being $0.21, the EPS surprise was +14.29%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how PowerSchool performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Subscriptions and support: $148.99 million versus $152.76 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change.
Revenue- Service: $20.72 million compared to the $20.70 million average estimate based on four analysts. The reported number represents a change of +4% year over year.
Revenue- License and other: $12.45 million compared to the $5.83 million average estimate based on four analysts. The reported number represents a change of +130.3% year over year.
View all Key Company Metrics for PowerSchool here>>>
Shares of PowerSchool have returned -12.2% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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PowerSchool Holdings, Inc. (PWSC) : Free Stock Analysis Report
