What happened
Shares of Talend (TLND) tumbled on Thursday after the cloud and big data integration solutions provider reported its third-quarter results. Despite the company beating analyst estimates for both revenue and earnings, the stock was down about 35.8% at 12:15 p.m. EST.
So what
Talend reported third-quarter revenue of $52.1 million, up 36% year over year and slightly higher than the average analyst estimate. That growth rate includes a benefit from the switchover to the IFRS 15 revenue recognition standard, as the company did not restate previous results. Subscription revenue was $44.6 million, also up 36% year over year.
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Talend reported a non-IFRS net loss of $0.09 per share, up from a loss of $0.11 per share in the prior-year period and $0.01 better than analysts were expecting. The company lost $0.31 per share on an IFRS basis, down from a loss of $0.18 per share in the prior-year period.
Talend boosted its total customer count above 2,000 during the third quarter, and its cloud subscription business more than doubled on a year-over-year basis for the ninth straight quarter.
Now what
Talend expects fourth-quarter revenue between $56.6 million and $57.4 million, along with a non-IFRS net loss per share between $0.12 and $0.16. Those ranges compare to revenue of $41.5 million and a non-IFRS net loss per share of $0.28 in the fourth quarter of 2017. The midpoint of Talend's revenue guidance range implies year-over-year growth of about 37%.
Even with positive results and solid guidance, Talend stock crashed on Thursday. Valuation may be playing a role -- the stock traded around 10 times trailing-12-month sales prior to the third-quarter report. Expectations may have simply gotten out ahead of what the company could deliver.
