Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why ServiceSource International Shares Got Demolished Today

By Evan Niu, CFA - Feb 22, 2017 at 1:37PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The market was not impressed with fourth-quarter earnings.

What happened

Shares of ServiceSource ( SREV 3.85% ) 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.

A pair of dice with "buy" and "sell"

Image source: Getty Images.

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ServiceSource International, Inc. Stock Quote
ServiceSource International, Inc.
$1.08 (3.85%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.