The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Saba Software missed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share contracted.
Margins dropped across the board.
Saba Software chalked up revenue of $30 million. The five analysts polled by S&P Capital IQ expected a top line of $32 million. Sales were 2.8% higher than the prior-year quarter's $29 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.10. The five earnings estimates compiled by S&P Capital IQ forecast -$0.11 per share on the same basis. GAAP EPS were -$0.16 for Q2 versus -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 62.1%, 290 basis points worse than the prior-year quarter. Operating margin was -17.6%, 1,530 basis points worse than the prior-year quarter. Net margin was -15.0%, 1,270 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $33 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $131 million. The average EPS estimate is -$0.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 56 members out of 75 rating the stock outperform, and 20 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Saba Software a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Saba Software is buy, with an average price target of $11.88.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.