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5 SaaS Stocks That Crushed Earnings This Season

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Gettin’ SaaS-y with JP and Joey

Software-as-a-service stocks are some of the most beloved names in the tech sector today, and many of them have delivered very strong results for their shareholders this earnings season. Let’s take a quick look at five SaaS stocks that have stood out so far this earnings season.  These names take time to research and discipline to invest in, because by their nature they can be volatile.  But they can also be some of the most rewarding over the long term.   We think they should be on your radar.  High growth stocks can actually be a good anchor in a tricky market, because you can feel better about buying them if they drop.

Zendesk Inc. (ZEN)

Zendesk is a customer experience management platform.

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In the first quarter of 2018, Zendesk reported revenue growth of 38.2% to $129.70 million and non-GAAP net income of $0.02 per share, up from a non-GAAP net loss of $(0.03) per share in the year-ago period; these results obliterated analysts’ expectations, which called for revenue of $98.8 million and a non-GAAP net loss of $0.02 per share.

As a result of its strong performance in the first quarter, Zendesk raised its full-year revenue outlook, now calling for the following numbers:

Metric New Outlook Previous Outlook 2017 Actual
Revenue $565 million-$572 million $555 million-$565 million $430.49 million

A beat and raise is about as good as it gets.

Apptio Inc. (APTI)

Apptio is the leading provider of cloud-based applications for hybrid IT.

In the first quarter of 2018, Apptio recorded revenue growth of 23.1% to $54.07 million and a non-GAAP net loss of $(0.00) per share, which compares with a non-GAAP net loss of $(0.09) per share in the year-ago period; these results crushed analysts’ expectations, which called for revenue of $51.65 million and a non-GAAP net loss of $(0.06) per share.

Apptio went on to raise its full-year outlook, calling for the following results:

Metric New Outlook Previous Outlook 2017 Actual
Revenue $225 million-$230 million $220 million-$225 million $188.52 million
Non-GAAP operating income/(loss) Postive Approximately break-even $(2.74) million

As mentioned before, a beat and raise is about as good as it gets.

Alteryx Inc. (AYX)

Alteryx offers an end-to-end data analytics platform.

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In the first quarter of 2018, Alteryx achieved revenue growth of 50% to $42.82 million and its non-GAAP net loss narrowed to $(0.01) per share compared with $(0.08) per share in the year-ago period; these results easily beat analysts’ expectations, which called for revenue of $39.8 million and a non-GAAP net loss of $(0.07) per share

Alteryx’s strong first-quarter performance allowed it to raise its full-year outlook; here’s a breakdown:

Metric New Outlook Previous Outlook 2017 Actual
Revenue $183 million-$186 million $176 million-$179 million $131.61 million
Non-GAAP net income/(loss) per share $(0.22)-$(0.27) $(0.24)-$(0.29) $(0.11)

You may have caught on to the “beat and raise” theme we have going on here…

Five9 Inc. (FIVN)

Five9 is a leading provider of cloud software for contact centers.

In the first quarter of 2018, Five9 reported revenue growth of 25.3% to $58.91 million and non-GAAP net income of $0.08 per diluted share, compared with a non-GAAP net loss of $(0.00) per basic share in the year-ago period; these results came in well above analysts’ expectations, which called for revenue of $55.1 million and non-GAAP net income of $0.03 per share.

In response to its very strong first-quarter performance, Five9 raised its full-year outlook; here’s a breakdown of what it now expects to accomplish:

Metric New Outlook Previous Outlook 2017 Actual
Revenue $235.8 million-$238.8 million $231 million-$234 million $200.23 million
Non-GAAP net income per share – diluted $0.25-$0.30 $0.20-$0.25 $0.11

Another beat and raise… you get it.

RealPage Inc. (RP)

RealPage is one of the leading providers of software and data analytics for the world’s real estate industry.

In the first quarter of 2018, RealPage reported non-GAAP revenue growth of 31.2% to $201.61 million and non-GAAP net income growth of 68.2% to $0.37 per share; these results just beat analysts’ expectations, which called for revenue of $201.1 million and non-GAAP net income of $0.34 per share

RealPage’s strong performance in the first quarter allowed it to raise its full-year outlook; here’s a summary of what it now expects to achieve:

Metric New Outlook Previous Outlook 2017 Actual
Non-GAAP revenue $860 million-$868 million $835 million-$845 million $67402 million
Non-GAAP net income per share – diluted $1.46-$1.51 $1.41-$1.47 $0.93

So, there you have it – five SaaS-y companies that beat analysts’ expectations and raised their full-year outlooks, making them a few of the industry’s big winners so far this earnings season.

-JP Gravitt and Joey Solitro

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