Talend Q1 Loss Reported Wider Than Street, Revenue Jumps 44%; Mixed Guidance Issued
4:40 PM ET, 05/11/2017 - MT Newswires
04:40 PM EDT, 05/11/2017 (MT Newswires) – Talend (TLND) reported a Q1 net loss per share on a non-IFRS basis of $0.19 compared to the year earlier loss of $1.16. The consensus on Capital IQ was for a loss of $0.16.
Revenue jumped 44% to $32.9 million, just ahead of the Street’s view for $32 million.
In Q2, revenue is seen between $34.8 million to $35.8 million with a non-IFRS loss of $0.24 to $0.21. The Street’s view is for revenue of $34.7 million and a loss of $0.21.
For FY17, revenue is projected between $144.3 million to $146.3 million on a non-IFRS loss of $0.81 to $0.74. Analysts are expecting $142.7 million and a loss of $0.71 a share.
TLND slipped 0.8% after hours.
Managment says this:
“We achieved another quarter of record revenue of $32.9 million for the first quarter of 2017, up 44% year-over-year,” said Mike Tuchen, Talend CEO. “On a constant currency basis, our subscription revenue grew 47% year-over-year. For a ninth consecutive quarter, our cloud and big data solutions grew over 100% year-over-year. We saw a 60% increase in customers with over $100,000 per year in annualized subscription revenue. Finally, in the first quarter we completed a successful follow-on offering of shares on behalf of existing shareholders. We are pleased with our first quarter and we believe we are just getting started.”
Don’t read anything into the AH trading. As I type, there have been exactly 1,112 shares traded since the market closed – and I’m pretty sure half of those changed hands before they even released earnings.
They did beat Q2 Sales and raised FY17 Sales target with higher operating profit margin while accelerating their hiring. They are also forecasting a higher net loss though.
I can’t be sure the higher net loss is just them investing more to stay on top of the higher demand for their service, but the raise in forecast makes me believe that for now.
This stock has pretty low volume and large bid/ask gaps that make it very volatile.
After listening to the earnings call this afternoon, some other comments made by the CEO and CFO:
-TLND now has 260 customers who contributed +$100,000 or more in sales revenue vs. 162 one year ago. CEO said this suggests enterprises are making a long-term strategic commitment to Talend.
Last quarter was the first time CFO broke out the number of customers who contributed +$100,000 in sales revenue.
-In FY 2016 TLND trained 4X as many outside sales consultants on TLND than in 2015. Currently have a que of 1,500 outside consultants they will be training. In FY 2017 they are planning to train 3X the number of outside SI consultants on TLND as they did in FY’16…most of which are coming to Talend and requesting the training rather than visa-versa.
-Although CEO said TLND costs 3X less than their competition, they’re winning based on having the best technical solution, because end users cannot afford to have anything but a bullet-proof solution.
-40% employee growth from 566 in FY 16 to 722 in FY '17.
-Between 50%-60% of their bookings were tied to Hadoop within their big data/cloud category. They do not typically break Hadoop out as a separate category. These deals have the shortest. sales cycles vs. other categories in which they serve customers.
-AWS is their biggest single customer, however Azure/Microsoft is now 30% of their sales opportunities. CEO said TLND is experiencing a stronger multi-vendor customers within their market.
From my previous post: Please drop the word “sales” in front of the word consultants in the following paragraph. During the call, they used the vernacular SI consultants, for which I am far too non-technical to know what SI stands for. Anyone with more knowledge, please comment.
“-In FY 2016 TLND trained 4X as many outside sales consultants on TLND than in 2015. Currently have a que of 1,500 outside consultants they will be training. In FY 2017 they are planning to train 3X the number of outside SI consultants on TLND as they did in FY’16…most of which are coming to Talend and requesting the training rather than visa-versa.”