Shares of the cloud-based business planning software provider have continued to climb this month, bringing their gain to 115% in 2019 through Thursday, July 11. The broader market has returned 21% so far this year.
Buying shares of the San Francisco-based company at its October 2018 initial public offering turned out to be a great plan. Since the IPO, Anaplan stock has surged 236% through July 11.
We can attribute Anaplan stock's market outperformance in the first half of the year to investor enthusiasm about the company's early financial results as a public company and its long-term growth potential.
In May, Anaplan reported its first-quarter results for fiscal 2020. In Q1, total revenue surged 47% year over year to $75.8 million, while subscription revenue jumped 45% to $65.1 million.
As is typical for a newly public company, Anaplan is not profitable, largely because it's heavily investing in growth initiatives. In the first quarter, its total net loss expanded 42% year over year to $37.2 million. On a per-share basis, its loss narrowed 303% to $0.30. On a non-generally accepted accounting principles (GAAP) basis, the loss per share narrowed 36% to $0.16. The per-share losses narrowed only because of the huge increase in the number of shares following the IPO.
For the full fiscal year 2020, management raised its revenue guidance to between $326 million and $331 million, up from its previous outlook of between $310 and $314 million.