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Anaplan (PLAN) Q1 Loss Wider Than Expected, Revenues Up Y/Y

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Anaplan reported first-quarter fiscal 2022 adjusted loss of 10 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. However, the figure was year over year.

Revenues of $129.8 million beat the Zacks Consensus Estimate by 2.2% and improved 25% year over year.

The top-line performance can primarily be attributed to healthy customer growth and strength of bookings from existing customers. The company’s partnerships with the likes of Alphabet’s (GOOGL - Free Report) Google Cloud and Amazon’s (AMZN - Free Report) cloud computing arm Amazon Web Services also expanded its footprint.

Quarterly Details

Subscription revenues (91.2% of total revenues) increased 26.1% year over year to $118.3 million.

Revenues from professional services (8.8% of total revenues) climbed 14.6% year over year to $11.5 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

 

The company’s dollar-based net expansion rate (NRR) was 118%.

Notably, calculated billings in the fiscal first quarter were $127 million, up 32% year over year. Moreover, Remaining Performance Obligation (RPO) increased 29% year over year to $832.3 million.

Anaplan is now serving 473 customers with more than $250K in annual recurring revenues, up 29% on a year-over-year basis. The company ended the quarter with more than 1700 customers.

Operating Details

Non-GAAP gross margin was 76.9%, down 80 basis points (bps) year over year. Subscription gross margin was 83.6%, down 130 bps year over year. Services gross margin was 7.9%, down 230 bps from the year-ago quarter.

General & administrative expenses climbed 11.2% year over year to $24.9 million, while sales and marketing expenses rose 23.4% to $88.5 million. Additionally, research and development expenses surged 39.8% year over year to $33.2 million.

Anaplan’s non-GAAP operating loss was $12.4 million compared with loss of $13.4 million reported in the year-ago quarter.

Balance Sheet & Cash Flow

Total cash and cash equivalents as of Apr 31, 2021, was $327.5 million compared with $321 million as of Jan 31, 2021.

Non-GAAP free cash was $7.6 million in the quarter.

Key Announcements

Anaplan announced that its CFO David H Morton Jr. will step down from his position once a successor is hired.

Moreover, Anaplan was recognized by TrustRadius as “2021 Top Rated Sales Performance Management Software.”

Guidance

For second-quarter fiscal 2022, Anaplan expects revenues between $133.5 million and $134.5 million. Services revenues are estimated to be $10.5-$11.5 million.

Further, the company expects non-GAAP operating margin between negative 14% and 15%.

Billings are anticipated between $138 million and $140 million, suggesting year-over-year growth of 27-29%.

For fiscal 2022, Anaplan projects revenues to be $555-$560 million. Further, non-GAAP operating margin is anticipated between negative 8% and 9%.

Additionally, the company expects to benefit from a widening customer base and the expansion into the automotive sector as a key industry.

Zacks Rank & a Key Pick

Anaplan carries a Zacks Rank #3 (Hold).

Zoom Video Communications (ZM - Free Report) with a Zacks Rank #2 (Buy) is a stock worth considering in the broader technology sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zoom is set to report its first-quarter fiscal 2022 results on Jun 1.

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