The 10-second takeaway
For the quarter ended March 31 (Q1), ExactTarget beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share shrank. GAAP loss per share shrank.
Gross margins increased, operating margins dropped, net margins dropped.
ExactTarget booked revenue of $88.9 million. The 12 analysts polled by S&P Capital IQ anticipated sales of $87.8 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $64.1 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 -$0.08. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. Non-GAAP EPS were -$0.08 for Q1 compared to -$0.15 per share for the prior-year quarter. GAAP EPS were -$0.17 for Q1 versus -$0.32 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 63.8%, 100 basis points better than the prior-year quarter. Operating margin was -13.2%, 630 basis points worse than the prior-year quarter. Net margin was -13.1%, 580 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $91.2 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $375.9 million. The average EPS estimate is -$0.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 33 members out of 42 rating the stock outperform, and nine members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give ExactTarget a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ExactTarget is outperform, with an average price target of $31.67.
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