The 10-second takeaway
For the quarter ended March 31 (Q1), ServiceSource International beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped to a loss. GAAP loss per share increased.
Margins dropped across the board.
ServiceSource International reported revenue of $61.1 million. The six analysts polled by S&P Capital IQ expected to see revenue of $60.5 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $57.6 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 seven earnings estimates compiled by S&P Capital IQ anticipated -$0.04 per share. Non-GAAP EPS were -$0.02 for Q1 versus $0.01 per share for the prior-year quarter. GAAP EPS were -$0.14 for Q1 against -$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 37.0%, 640 basis points worse than the prior-year quarter. Operating margin was -15.8%, much worse than the prior-year quarter. Net margin was -17.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $64.8 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $268.7 million. The average EPS estimate is $0.08.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 22 members out of 35 rating the stock outperform, and 13 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give ServiceSource International a green thumbs-up, and seven 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 $10.00.
Is ServiceSource International playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add ServiceSource International to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.