Anaplan Inc (NYSE:PLAN) shares gained 11.2% on Wednesday after the company reported second-quarter earnings and revenue beats and raised its full-year guidance.
On Tuesday, Anaplan reported a second-quarter adjusted EPS loss of 9 cents, beating analyst estimates of a 14-cent loss. Revenue for the quarter was $144.3 million, above analyst expectations of $133.8 million. Revenue was up 35.4% from a year ago.
Anaplan said its quarterly subscription revenue was up 34.6% to $130.8 million. The remaining performance obligation of $905.6 million was up 28.8%.
Anaplan also raised its full-year revenue guidance to between $571.5 million and $573.5 million, up from a previous guidance range of between $555 million and $560 million. Analysts are forecasting full-year revenue of $559.1 million.
Favorable Environment: JMP Securities analyst Patrick Walravens said the guidance was mixed, with better-than-expected revenue forecasts offsetting higher expenses.
“We continue to like Anaplan as it has a highly scalable connected planning solution that works across use cases, including finance, sales, and supply chain, it addresses a large TAM ..." Walravens wrote, and "... its leadership team is stabilizing with the addition of Bill Schuh as Chief Revenue Officer in January 2021 and now Vikas Mehta as CFO in July, and its lighthouse customers like Microsoft, Amazon, and Google spend multiple millions per year on the solution and still have significant expansion potential, in our opinion,”
Wells Fargo analyst Michael Turrin said Anaplan is well-positioned to benefit from a favorable environment for back-office software.
“We continue to view PLAN as well-positioned for recovery given a significant cloud back-office opportunity, improving billings/bookings trajectory, and favorable relative valuation (12x CY22e EV/S vs. 19x median for 30+% growers) which we think can help drive a catchup in performance over the coming year,” Turrin wrote.
Digital Transformation Projects: Mizuho analyst Siti Panigrahi said the rebound in enterprise IT spending in the second quarter is encouraging.
“Overall, we believe the company stands to benefit from these continued efforts along with growing demand for connected planning solutions and accelerated digital transformation in 2021,” Panigrahi wrote.
Needham analyst Scott Berg said the second-quarter billings beat highlights the return of the digital transformation spending.
“We believe PLAN's execution has improved under new sales leadership and, when combined with a healthier demand macro, we think the company is in a strong position for a multi-quarter run of outperformance versus expectations.
Ratings And Price Targets:
- JMP Securities has a Market Outperform rating and an $87 target.
- Wells Fargo has an Overweight rating and an $85 target.
- Needham has a Buy rating and a $95 target.
- Mizuho has a Buy rating and a $90 target.