The 10-second takeaway
For the quarter ended March 31 (Q1), Demandware beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP loss per share shrank. GAAP loss per share shrank.
Gross margins increased, operating margins shrank, net margins dropped.
Demandware chalked up revenue of $20.5 million. The 10 analysts polled by S&P Capital IQ expected to see revenue of $19.9 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $16.1 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 -$0.13. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share. Non-GAAP EPS were -$0.13 for Q1 versus -$0.23 per share for the prior-year quarter. GAAP EPS were -$0.27 for Q1 versus -$0.42 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 68.4%, 210 basis points better than the prior-year quarter. Operating margin was -35.7%, much worse than the prior-year quarter. Net margin was -38.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $22.2 million. On the bottom line, the average EPS estimate is -$0.21.
Next year's average estimate for revenue is $99.2 million. The average EPS estimate is -$0.33.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 18 members out of 26 rating the stock outperform, and eight members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Demandware a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Demandware is outperform, with an average price target of $36.88.
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