What happened
Shares of ServiceSource (SREV +0.00%) got demolished today, down by 31% as of 1 p.m. EST, after the company reported fourth-quarter results.
So what
Revenue in the fourth quarter came in at $68.7 million, up 5.7% from a year ago. That translated into adjusted earnings of $0.02 per share. On a GAAP basis, the company posted a net loss of $0.10 per share.
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In a statement, CEO Christopher Carrington said, "Our investments in 2016 in our people, platforms, and global Revenue Delivery Centers improved the results we delivered for our clients and helped us win 12 new logos last year. As we accelerate our digital transformation in 2017, we believe our solutions around customer success, inside sales, channel management, and renewals will drive even deeper value for new and existing clients."
Now what
ServiceSource provided guidance for both the first quarter as well as the full year 2017. Revenue in the first quarter is expected in the range of $55 million to $58 million, which should result in an adjusted net loss of $1.5 million to $3.5 million and adjusted EBITDA of $1 million to $4 million. In terms of the full year, sales should be $248 million to $258 million, with adjusted net income of $2 million to $5 million and adjusted EBITDA of $11 million to $15 million.
