PLAN: Anaplan Earnings

Pretty good quarter. Up 9% premarket.

– Third Quarter Subscription Revenue up 47% Year-Over-Year
– Remaining Performance Obligation of $590 million, up 55% Year-Over-Year
– Dollar-Based Net Expansion of 123%

SAN FRANCISCO–(BUSINESS WIRE)–November 21, 2019–
Anaplan, Inc. (NYSE:PLAN), a pioneer in Connected Planning, today announced financial results for its third quarter ended October 31, 2019.

“We are proud of all our accomplishments during this first year as a public company. It’s been impressive to see how Connected Planning has resonated throughout the enterprise planning ecosystem,” said Frank Calderoni, chief executive officer at Anaplan. “We hear consistently from our customers that the value they see with our platform is essential and a major competitive advantage.”

Third Quarter Fiscal 2020 Financial Results
– Total revenue was $89.4 million, an increase of 44% year-over-year.

Subscription revenue was $79.7 million, an increase of 47% year-over-year.

– GAAP operating loss was $32.5 million or 36.4% of total revenue, compared to $50.3 million in the third quarter of fiscal 2019 or 81.2% of total revenue. Non-GAAP operating loss was $8.8 million, or 9.9% of total revenue, compared to $18.3 million in the third quarter of fiscal 2019, or 29.5% of total revenue.

– GAAP loss per share was $0.26, compared to $1.11 in the third quarter of fiscal 2019. Non-GAAP loss per share was $0.08, compared to $0.18 in thethird quarter of fiscal 2019.

– Cash and Cash Equivalents were $310.8 million as of October 31, 2019.

Financial Outlook

The Company is providing the following guidance for its fourth quarter fiscal 2020:
– Total revenue is expected to be between $96.5 and $97.5 million.
– Non-GAAP operating margin is expected to be between negative 14% and 15%.

The Company is updating its previous guidance provided on August 27, 2019 for full year fiscal 2020:
– Total revenue is now expected to be between $346 and $347 million (was between $339 and $343 million).

– Non-GAAP operating margin is now expected to be between negative 17% and 18% (was between negative 19.5% and 20.5%).

14 Likes

Just like magic, I have no idea how they did that on bottom line(NON GAAP operating lose) it’s only 9.9%!
Honestly I not very satisfied with the top line, I’m seeking for more than 90m but I’m okay with the bottom line number.

Rick long PLAN

Just like magic, I have no idea how they did that on bottom line(NON GAAP operating lose) it’s only 9.9%!

At first glance it looks like the bottom line beat is due to lesser expenses. Non-GAAP expense growth dropped from 36% last quarter to only 21% this quarter and expenses as a percentage of total revenue dropped sequentially from 95% to 86%. I haven’t listened to the call yet to hear the reasoning and whether it’s sustainable, but that’s my blink impression as to where the bottom line leverage came from.

As Rick points out, operating margins have gone from -26.5% to -19.7% to -9.9% the last three quarters. That -9.9% is vs -29.5% last year. PLAN’s Q4 guide is -14% (which they should beat) vs -22.9% last year. So it does look like they are continuing to creep toward profitability.

Feel free to chime in if others see it differently.

2 Likes

I’m not sure how they define subscription revenues because I’m observing that they’re a bit like task-oriented companies, so payment, invoice and ASC606 will confused the way how we predict. The recent emphasis on the problem is similar to the calculation of the billing rate just like AYX.The previous season was YOY+46%, which triggered a little bit of concern about the weakness of future business, but this season jumped up to 59%. According to the CFO, they generally sign the contract for about three years, so from his opinion, It is recommended to use RPO observations to be more appropriate. This is the same as AYX. From this ER result, it can be seen that PLAN will use balance as a guideline in the future, that is, healthy rapid growth with healthy investment recovery. PLAN has a probability of 2021 budget. It’s 460M YOY+33% Although this number is a little soft for me, but after considering sandbags,we expect a YOY40%+ should not be too difficult, and then looking for the NON GAAP operation margin loss to within double digits.PLAN is a stable cloud computing investment target with growth ability

Rick

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