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Why Anaplan Stock Jumped Today

By Evan Niu, CFA - Nov 24, 2020 at 1:25PM

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The enterprise planning specialist reports strong quarterly results.

What happened

Shares of Anaplan ( PLAN 5.71% ) have jumped as much as 12% today after the company reported fiscal third-quarter earnings. The results topped expectations and the company provided a strong outlook for the fourth quarter. As of 12:50 p.m. EST, the stock was up 9%.

So what

Revenue in the fiscal third quarter increased 28% to $114.9 million, topping the consensus estimate of $109.7 million. That resulted in an adjusted net loss per share of $0.05, which was better than the $0.10 per share in adjusted losses that Wall Street analysts were modeling for. The software-as-a-service (SaaS) enterprise planning software provider finished the quarter with $296.8 million in cash.

Anaplan logo at headquarters

Image source: Anaplan.

"We delivered a strong quarter as companies prioritize investments toward initiatives that drive incremental business value," CEO Frank Calderoni said in a statement. "By using our Connected Planning platform, our customers stay ahead of their competition with the ability to adjust and adapt quickly to an everchanging environment."

Now what

Guidance for the fourth quarter calls for revenue of $118.5 million to $119.5 million, slightly ahead of the consensus estimate of $118.4 million. Billings are forecast in the range of $152 million to $153 million, compared to the $151 million that analysts are expecting.

Anaplan boosted its full-year guidance and now expects total revenue of $444 million to $445 million in fiscal 2021, up from its prior outlook of $437 million to $439 million. The company expects adjusted operating margin of negative 9% to negative 10% this year, an improvement compared to the previous guidance of negative 11% to negative 12%.

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