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Anaplan (PLAN) Q4 Loss Narrower Than Expected, Revenues Up Y/Y

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Anaplan (PLAN - Free Report) reported fourth-quarter fiscal 2021 adjusted loss of 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. The figure remained flat, year over year.

Revenues of $122.5 million beat the Zacks Consensus Estimate by 2.9% and increased 24.7% year over year as well.

The top-line performance was majorly driven by the higher customer additions on strong adoption of the company’s cloud solutions on the ongoing digital transformation wave.

Quarterly Details

Subscription revenues (91.9% of total revenues) jumped 25.7% year over year to $112.6 million.
 

Anaplan, Inc. Price, Consensus and EPS Surprise

Anaplan, Inc. Price, Consensus and EPS Surprise

Anaplan, Inc. price-consensus-eps-surprise-chart | Anaplan, Inc. Quote

Revenues from Professional services (8.1% of total revenues) climbed 14.2% year over year to $10 million.

The company’s dollar-based net expansion rate (NRR) was 114%, lower than the fiscal 2020 NRR of 122%, but higher than the 113% reported in year-ago quarter.

Notably, calculated billings in the fiscal fourth quarter were $173 million, up 37% year over year. Moreover, Remaining Performance Obligation (RPO) increased 25% year over year to $818 million.

Anaplan is now serving 453 customers with more than $250K in annual recurring revenues, up 28% on a year-over-year basis.    

Moreover, this Zacks Rank #2 (Buy) company benefits from the significant contribution of its solid partner base, which includes Google Cloud, Deloitte, Salesforce (CRM - Free Report) , Adobe, ServiceNow (NOW - Free Report) , Workday and SAP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Operating Details

Non-GAAP gross profit came in at $95.5 million, up from year-ago quarter’s $75.9 million. In addition, gross margin on a non-GAAP basis in the reported quarter was 78% and expanded 100 basis points (bps) from the 77% reported in the year-ago quarter.

Subscription gross margin was 84%, nearly flat year over year. Services gross margin was roughly 7%, up 300 bps from the year-ago quarter.

General & administrative expenses flared up 8.4% year over year to $23.5 million, while sales and marketing expenses rose 20.2% to $83.5 million. Additionally, research and development expenses shot up 34.8% year over year to $27.5 million.

Anaplan’s non-GAAP operating loss was $9.4 million compared with the loss of $11 million reported in the year-ago quarter.

Balance Sheet & Cash Flow

Total cash and cash equivalents as of Jan 31, 2021, were $321 million compared with $296.8 million as of Oct 31, 2020.

Non-GAAP free cash was $7.5 million in the quarter.

Key Announcements

Anaplan announced its strategic collaboration with Amazon’s (AMZN - Free Report) cloud arm, Amazon Web Services (AWS), to make the Anaplan platform available on AWS.

Further, the company noted that it has been selected by McKinsey as the latter’s corporate performance management partner.

Guidance

For first-quarter fiscal 2022, Anaplan expects revenues of $126.5-$127.5 million. Services revenues are estimated in the $9.5-$10.5 million band. Further, it expects non-GAAP operating margin between negative 9.5% and 10.5%.

Billings are anticipated between $122 million and $124 million, suggesting year-over-year growth of 27-29%.

For fiscal 2020, the company projects revenues in the $550-$555 million range. Further, non-GAAP operating margin is anticipated between negative 8% and 9%.

Additionally, Anaplan expects to benefit from a widening customer base and the expansion of its platform across the existing customer base. Apart from this, the recently-inked agreement with AWS is likely to further aid the expansion of its enterprise clientele.

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