The 10-second takeaway
For the quarter ended March 31 (Q1), SciQuest met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
SciQuest reported revenue of $20.7 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $20.8 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $14.4 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 $0.08. The seven earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. Non-GAAP EPS of $0.08 for Q1 were 60% higher than the prior-year quarter's $0.05 per share. GAAP EPS were -$0.03 for Q1 against $0.01 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 68.0%, 300 basis points worse than the prior-year quarter. Operating margin was -6.3%, 840 basis points worse than the prior-year quarter. Net margin was -3.0%, 410 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $21.9 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $91.0 million. The average EPS estimate is $0.37.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 18 members out of 24 rating the stock outperform, and six members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give SciQuest a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SciQuest is outperform, with an average price target of $23.38.
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