Why Responsys Shares Tanked Hard

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Responsys (Nasdaq: MKTG  ) tanked hard today, down by 34% at the low, after the company reported  earnings and worse-than-expected guidance.

So what: Third-quarter revenue added up to $40.5 million, resulting in non-GAAP net income of $3 million, or $0.06 per share. Subscription revenue was $28.5 million, a 19.4% increase. Those were mostly in line with market expectations, but the company's guidance disappointed investors.

Now what: Fiscal 2012 revenue should be in the range of $160 million to $161 million, with non-GAAP earnings per share of approximately $0.20 per share. Responsys should recognize $2.7 million in intangible amortization and incur $6.5 million in stock-based compensation, totals that are excluded from the non-GAAP figure. Next quarter should see sales between $42 million and $43 million.

Interested in more info on Responsys? Add it to your watchlist by clicking here.

 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2098935, ~/Articles/ArticleHandler.aspx, 7/29/2014 9:44:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement