The 10-second takeaway
For the quarter ended June 30 (Q2), ServiceSource International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share increased.
Gross margins grew, operating margins contracted, and net margins shrank.
ServiceSource International notched revenue of $59.7 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $59.2 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $48.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.02. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS were -$0.50 for Q2 versus -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.2%, 140 basis points better than the prior-year quarter. Operating margin was -5.4%, 50 basis points worse than the prior-year quarter. Net margin was -61.6%, 5,930 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $59.0 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $248.2 million. The average EPS estimate is $0.07.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 37 rating the stock outperform, and 17 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give ServiceSource International a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ServiceSource International is outperform, with an average price target of $20.33.
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