Why ServiceSource Shares Got Crushed

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 ServiceSource (NASDAQ: SREV  ) got crushed today, down by as much as 15%, after the company reported fourth-quarter earnings.

So what: Revenue in the fourth quarter was $67.3 million, resulting in non-GAAP earnings per share of $0.05. Both figures came in better than expected, as the consensus forecasts were looking for $$62.9 million in sales and adjusted earnings per share of just $0.01.

Now what: CEO Mike Smerklo said that recurring revenue sources continue to grow as a percentage of total sales. The company also announced a new CFO, Ashley Fieglein Johnson, effective once it files its form 10-K with the SEC. The outgoing CFO David Oppenheimer had previously announced that he was leaving the company in December.

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

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  • Report this Comment On February 13, 2013, at 5:38 AM, rsinj wrote:

    Shares didn't get crushed at all.

    Look at the runup over the past couple months. Does it really deserve to be up 50%? And about the 15% drop, the stock is higher now than the closing price for all but one day this year.

    The company/stock is wildly overvalued based on a number of Fool metrics.

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