Anaplan Inc. (NYSE: PLAN) on Tuesday, 26 May 2020 announced its First Quarter financials for the Fiscal year 2021. The firm saw a Dollar-based Net Expansion of 117%. The Q1 subscription revenue saw an increase of 44%, amounting to $93.8 million as compared to previous year results. The Remaining Performance Obligation increased by 37% amounting to $647 million over last year. GAAP operating loss was recorded at $38.8 million (37.3% of total revenue). Non-GAAP operating loss was $13.4 million (12.9% of total revenue).
Mr. Frank Calderoni, the Chief Executive Officer commented on the reports, “While our first-quarter results reflect the impact of COVID-19, we believe the need for a digitally connected planning platform will become even stronger as it is clear that traditional planning no longer works. We are confident in the demand for our Connected Planning solution as companies look to drive digital change in order to respond and adapt to the rapid pace of change. Our unique calculation engine, committed partner ecosystem, extensive customer base and strong financial position sets us up to drive long-term success.”
Fiscal Year 2020 Highlights
- Subscription revenues went up by 48% over last year, amounting to $307.9 million.
- The total revenues increased by 45% compared to last year, amounting to $348 million.
- GAAP Operating loss for the year was recorded at $148.4 million (42.7% of the total revenue), as compared to $128.3 million (53.3% of the total revenue) of the previous fiscal year.
- Non-GAAP Operating loss for the current year was recorded at $56.5 million (16.2% of the total revenue), as compared to $74.4 million (30.9% of the total revenue) of the previous year.
- GAAP loss per share was $1.15, as compared to $2.46 in the previous fiscal year.
- Non-GAAP loss per share was $0.44, as compared to $0.73 in the previous fiscal year.
Recent Developments in the quarter
- Mr. Allan Leinwand was appointed into the company’s Board of Directors.
- The company announced its premier customer event, Connected Planning Xperience to go digital in the year 2020.
- Recognized as an SIIA CODiE 2020 winner for the best financial management solution.
- Launch of ‘Anaplan Helps’. This would provide free access to its platform for 90 days and high-impact applications to support qualified organizations in need to accelerate their COVID-19 response.
(Source: Business Quant)
The company’s recorded its cash and cash equivalents at $303.1 million at the end of the quarter. The company is earning well from its operation resulting in the company being in a stable liquidity condition. The company is currently not facing any cash crunches as a result of the outbreak of the pandemic. It is able to cover its expenses and obligations towards its stakeholders effectively with its resources available.
Cash and cash equivalents represent the actual cash in hand and assets that are readily convertible into cash such as marketable securities. The company has sufficient cash reserves to sustain itself in the market for a foreseen time period. This implies, the company is financially strong in the coming quarters of the year.
(Source: Business Quant)
The Gross Profit for the firm was recorded at $79,104, an increase of approximately 31% from the previous quarter. The company has seen an increase in its Gross Profit over the years. The company being in the technology sector has been able to bloom with the growth of the sector with new technological advancements.
High Gross Profits imply that the company is able to efficiently cover all of its expenses from the revenues it earns. It has surplus funds to invest and reserve for its future requirements. The company has strong financial standing and can sustain its position in the market with its present earnings and reserves. No stakeholders of the company are being affected in regard to their payments and other obligations. Furthermore, with the surplus amounts of its profits, it can invest them to develop new products and services that would be useful in the current scenario and post the pandemic situation.
The company expects to achieve the following financial figures in the second quarter of the fiscal year 2021-
- Total revenue from operations is expected to be between $103 million to $104 million.
- Non-GAAP operating margin is expected to be between negative 15.0% and 16.0%.
- As a baseline for the second quarter, billings are expected to be in the range of $98 million to $100 million.
Further, the company has withdrawn its previously issued full-year fiscal 2021 guidance provided on February 27, 2020, as a result of the uncertainties that arise due to the current market scenarios.
The company serves as a good option in the prevailing market situation. It has enough earnings and future prospects for expansion to sustain itself in the pandemic and post-pandemic scenarios. Existing investors have security regarding their investments in the company and the returns that are being yielded. New investors can look at debt instruments to invest in the company taking into consideration the uncertainties that are being generated due to the pandemic.