Anaplan PLAN reported third-quarter fiscal 2022 adjusted loss of 5 cents per share, which beat the Zacks Consensus Estimate by 54.6%. However, the figure remained unchanged on a year-over-year basis.

Revenues of $155.3 million beat the Zacks Consensus Estimate by 6.3% and improved 35.2% year over year.

Anaplan shares tumbled 19% in after-hours trading. Shares are down 27.5% year to date, underperforming the Zacks Internet Software industry’s decline of 14.5% and the Computer & Technology sector’s return of 26.3%.

Quarterly Details

Subscription revenues (89.7% of total revenues) increased 33.1% year over year to $139.3 million.

Revenues from professional services (10.3% of total revenues) surged 57.4% year over year to $16 million.

Anaplan, Inc. Price, Consensus and EPS Surprise

Anaplan, Inc. price-consensus-eps-surprise-chart | Anaplan, Inc. Quote

The company’s dollar-based net expansion rate was 119%. Billings increased 25.6% year over year to $183 million.

Remaining Performance Obligation increased 24.8% year over year to $923.2 million.

Anaplan is now serving 528 customers with more than $250K in annual recurring revenues, up 26.6% on a year-over-year basis.

Operating Details

Non-GAAP gross profit amounted to $116.9 million, up 34% year over year. Gross margin, on a non-GAAP basis in the reported quarter, was 75.3%, down 70 basis points (bps) year over year.

Subscription gross margin was 83.4%, up 50 bps year over year. Professional services’ gross margin was 4.4%, down 80 bps from the year-ago quarter.

General & administrative expenses climbed 21.4% year over year to $27.7 million, while sales and marketing expenses rose 25.7% to $92.9 million. Research and development expenses surged 65.6% year over year to $40.8 million.

Anaplan’s non-GAAP operating loss was $6.9 million compared with the loss of $6.1 million reported in the year-ago quarter.

Balance Sheet & Cash Flow

Total cash and cash equivalents as of Oct 31, 2021 was $312.4 million compared with $312.9 million as of Jul 31, 2021.

Non-GAAP free cash outflow was $0.8 million in the reported quarter.

Key Q3 Highlights

Anaplan introduced the next-generation Anaplan Polaris Calculation Engine for early adopters during the reported quarter.

Anaplan on AWS was launched on the AWS Marketplace for customers in the United States. Moreover, Anaplan on Google Cloud Platform was launched for customers in Japan, the partnership’s second market. Anaplan was also announced as a Google Cloud partner for Supply Chain Twin solution.

Guidance

For fourth-quarter fiscal 2022, Anaplan expects revenues between $154 million and $155 million. The company expects non-GAAP operating margin between 10% and 11%.

Billings are anticipated between $213 million and $214 million.

For fiscal 2022, Anaplan projects revenues to be $583.5-$584.5 million. Further, non-GAAP operating margin is anticipated between negative 7.5% and 8.5%.