Anaplan Q2 Results Impress; Shares Surge 15% After-Hours

Anaplan, Inc. (PLAN) delivered impressive second-quarter results with strong growth in subscription revenue and healthy momentum across the business. Shares surged 15% on the news in the extended trading session on August 31.

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The company reported a loss of $0.09 per share, higher than the previous year’s loss of $0.04 per share, but much better than analysts’ expected loss of $0.14 per share.

Moreover, total revenue grew 35.5% year-over-year to $144.32 million and meaningfully surpassed the Street’s estimate of $133.99 million. (See Anaplan stock charts on TipRanks)

Compared to the year-ago period, Anaplan’s subscription revenue grew 34.6%, and dollar-based net expansion increased 119%. Furthermore, the company’s Remaining Performance Obligation (RPO) increased 28.8% to $905.6 million at quarter-end.

Commenting on the results, Frank Calderoni, the company’s CEO, said, “With the post-pandemic economy emerging, we are well-positioned to take advantage of the numerous market opportunities to help solve our customers’ biggest challenges.”

Based on its strong Q2 results, Anaplan guided for third-quarter total revenue to be in the range of $145.5 – $146.5 million. Also, the company raised its full-year Fiscal 2022 total revenue guidance to fall in the range of $571.5 – $573.5 million compared to the consensus estimate of $558 million.

Recently, Monness analyst Brian White maintained a Buy rating on the stock with a price target of $90, implying 50.1% upside potential to current levels.

White said, “Playing into the SaaS trend, recently completing its IPO, leveraging a subscription-based model, pursuing a big market opportunity, and enjoying strong revenue growth based on our current estimates, we believe investors will pay a premium valuation for this next-generation software vendor.”

Additionally, the analyst notes that Anaplan was derailed by the crisis but is well-positioned for growth as the economy rebounds, especially as the COVID-19 pandemic has accelerated the digital transformation, which bodes well for the company. The analyst expected PLAN to meet his Q2 revenue and loss expectations.

Based on 6 Buys and 2 Holds, the stock has an overall Strong Buy consensus rating. The average Anaplan price target of $73 implies 21.7% upside potential to current levels. Shares have lost 4% over the past year.