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Why Anaplan Stock Popped 10% Monday

Rich Smith, The Motley Fool

What happened

Shares of "connected planning" software-as-a-service (SaaS) provider Anaplan (NYSE: PLAN) leapt from the opening trade Monday, eventually ending the day up 10.6% after the company reported significantly better-than-expected fourth-quarter results.

Anaplan didn't earn a profit in Q4, but the $0.13 per share "adjusted loss" it did report was a nickel ahead of consensus estimates. Sales for the fiscal fourth quarter, $69.3 million, likewise exceeded analyst expectations.

Man pointing along arrow going up

 Image source: Getty Images.

So what

Anaplan grew its revenue 49% year over year, with subscription-based revenue up 44%.

As calculated by GAAP, the company's quarterly loss was $0.27 (twice as bad as the pro forma loss). On the plus side, the GAAP loss was much narrower than the $0.97 per share lost in Q4 a year ago.

To be clear, Anaplan operates on a year-ahead fiscal schedule. This morning's results, for example, were for "Q4 2019." The year-ago results were designated "Q4 2018."

For all of fiscal 2019, Anaplan reported a $2.46 per-share GAAP loss -- a nickel better than the $2.51 lost in fiscal 2018.

Now what

Anaplan is guiding investors to expect revenue of $70 million to $71 million in the fiscal first quarter of 2020 (that's the quarter we're in right now). Full-year revenue is projected to range from $310 million to $314 million. All year long, pro forma operating profit margins are expected to run negative -- and based on what we saw in "fiscal 2019," most likely, GAAP margins will be even more so.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.