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Anaplan Earnings: What To Look For From PLAN


Radek Strnad /
2022/03/01 7:07 am EST
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Financial planning software company Anaplan (NYSE:PLAN) will be announcing earnings results tomorrow afternoon. Here's what to look for.

Last quarter Anaplan reported revenues of $155.3 million, up 35.2% year on year, beating analyst revenue expectations by 6.17%. It was a mixed quarter for the company, with a solid beat of analyst estimates but a decline in gross margin.

Is Anaplan buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Anaplan's revenue to grow 26.3% year on year to $154.7 million, in line with the 24.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.

Anaplan Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.87%.

Looking at Anaplan's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Bill.com (NYSE:BILL) delivered top-line growth of 189% year on year, beating analyst estimates by 19.3% and Workday (NASDAQ:WDAY) reported revenues up 21.6% year on year, exceeding estimates by 0.86%. Bill.com traded up 36.3% on the results, Workday was up 6.98% on the results Read our full analysis of Bill.com's results here and Workday's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 4.55% over the last month. Anaplan is down 1.88% during the same time, and is heading into the earnings with analyst price target of $66.1, compared to share price of $47.37.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.