Shares of Talend (NASDAQ:TLND) fell as much as 10.7% early Wednesday after the cloud integration software company announced disappointing preliminary fourth-quarter results and some unexpected executive turnover.
Talend now expects total revenue in the fourth quarter to arrive in the range of $55.4 million to $55.8 million, good for year-over-year growth of 33% to 34%, but below guidance provided in November for between $56.6 million and $57.4 million.
Talend explained its shortfall stems from lower professional services revenue, which is now expected to be between $7.1 million and $7.2 million.
Meanwhile, subscription revenue should be between $48.3 million and $48.6 million, for healthy growth of 37% to 38%. The company further pointed out its Talend Cloud platform has enjoyed sustained momentum, contributing between 24% and 25% of new annual recurring revenue this quarter (up from 14% in the same year-ago period).
Talend also announced its executive VP of worldwide sales, Brad Stratton, is leaving the company. CEO Mike Tuchen will lead sales as the company searches for Stratton's formal replacement "to scale the company's business through its next phase of growth."
"We thank Brad for his contributions to the company over the last four years," Tuchen said, without explicitly indicating whether Stratton's departure is directly related to Talend's underwhelming results.
Finally, the company announced it has promoted Laurent Bride to chief operating officer. Bride previously served as Talend's chief technical officer since 2014.
The next details investors will receive on Talend's performance will come when the company formally releases fourth-quarter results on Feb. 14. But even with shares still reeling from last quarter's post-earnings plunge, it's no surprise to see the stock pulling back even further today given its top-line shortfall and executive transitions.