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Why Anaplan Stock Popped 10% Monday

By Rich Smith – Updated Apr 25, 2019 at 3:50PM

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Anaplan lost money, and it's going up anyway! Hooray!?

What happened

Shares of "connected planning" software-as-a-service (SaaS) provider Anaplan (PLAN) leapt from the opening trade Monday, eventually ending the day up 10.6% after the company reported significantly better-than-expected fourth-quarter results.

Anaplan didn't earn a profit in Q4, but the $0.13 per share "adjusted loss" it did report was a nickel ahead of consensus estimates. Sales for the fiscal fourth quarter, $69.3 million, likewise exceeded analyst expectations.

Man pointing along arrow going up

 Image source: Getty Images.

So what

Anaplan grew its revenue 49% year over year, with subscription-based revenue up 44%.

As calculated by GAAP, the company's quarterly loss was $0.27 (twice as bad as the pro forma loss). On the plus side, the GAAP loss was much narrower than the $0.97 per share lost in Q4 a year ago.

To be clear, Anaplan operates on a year-ahead fiscal schedule. This morning's results, for example, were for "Q4 2019." The year-ago results were designated "Q4 2018."

For all of fiscal 2019, Anaplan reported a $2.46 per-share GAAP loss -- a nickel better than the $2.51 lost in fiscal 2018.

Now what

Anaplan is guiding investors to expect revenue of $70 million to $71 million in the fiscal first quarter of 2020 (that's the quarter we're in right now). Full-year revenue is projected to range from $310 million to $314 million. All year long, pro forma operating profit margins are expected to run negative -- and based on what we saw in "fiscal 2019," most likely, GAAP margins will be even more so.

Check out the latest earnings call transcripts for companies we cover.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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