11 min

Anaplan First Quarter 2020 Earnings Pt 1‪.‬ Founder Stock Investing

    • Investering

Our Position:

I had my eye on Anaplan (PLAN) before it IPO’d (became a public company) but chose not to invest because I was concerned with sales and marketing spend and wondered if the company would be able to grow.

So far, they have executed well, proven there is demand for their product, and the stock had increased around 80% since it IPO’d in October before I opened a position. Common investing “wisdom” would caution people from investing after a stock had increased that much in such a short period of time, but I love to see signs of strength from companies and believe this is an indication of more to come from Anaplan.

Shares Owned: 519Average Purchase Price: $44.67 (opened initial position May 30, 2019)Total Purchase Price: $23,200Current Share Price: $47.50Current Value: $24,700Unrealized Gain: +6.3%Position Size in Portfolio: 5.28% (small)

First Quarter 2020 Results

Total revenue: $75.8 million, up 47% year-over-year.

Subscription revenue: $65.1 million, up 45% year-over-year.

Billings $87.1 million, up 57% year-over-year

Dollar-based Net Expansion Rate 123%

Customers with Annual Recurring Revenue (ARR) >$250K = 279

GAAP operating loss: $37.1 million or 48.9% of total revenue, compared to $25.3 million in the first quarter of fiscal 2019 or 49.1% of total revenue.

Non-GAAP operating loss: $20.1 million, or 26.5% of total revenue, compared to $23.3 million in the first quarter of fiscal 2019, or 45.2% of total revenue.

GAAP loss per share: $0.30, compared to $1.21 in the first quarter of fiscal 2019. Non-GAAP loss per share was $0.16, compared to $0.25 in the first quarter of fiscal 2019.

Cash and Cash Equivalents: $332.7 million as of April 30, 2019.

Key Slides/Graphs

Subscription revenue is continuing to grow steadily. We should see increased growth in Q2 and Q4 if last years’ trends continue

I’ll keep an eye on this number. If we see growth of customers spending >$250k ARR begin to slow, it will be a red flag for future growth potential.

I expect margins to stay relatively flat with potential increases as the company and their products become more well-known/established.

Billings growth longs very strong.

Updated Full-Year 2020 Guidance

I generally don’t pay too much attention to guidance. The companies I am invested in usually provide very conservative guidance that they’ll easily beat. However, I DO pay attention when companies warn about guidance, lower guidance, or raise guidance.

Anaplan raised it’s guidance for full-year 2020:

Total revenue is now expected to be between $326 and $331 million (was between $310 and $314 million).

Non-GAAP operating margin is now expected to be between negative 22.5% and 23.5% (was between negative 26% and 27%).

Recent Highlights

I don’t pay too much attention to these. Of course companies are going to highlight recent successes, but results are far more important than self-selected business highlights. I learned this lesson with a company called Nutanix that I was previously invested in. Management boasted about all kinds of highlights, they were/are a leader in Gartner’s Magic Quadrant, but the results we relatively week and confusing for multiple quarters. The stock has suffered tremendously over the last year +.

There is at least one important benefit from being identified as a leader according to Gartner. It makes it easier for customers to legitimize using a “new” solution like Anaplan because of the recognition of Gartner’s name/ratings.

Anaplan Positioned as a Leader in 2019 Gartner Magic Quadrant for Sales and Operations Planning Systems of Differentiation.

MUFG Investor Services announces their choice to use Anaplan for clients’ real-time planning processes.

Anaplan announces CPX 2019 in San Francisco, expected to welcome over 2000 attendees from around the world June 10-12.

To be continued

That’s

Our Position:

I had my eye on Anaplan (PLAN) before it IPO’d (became a public company) but chose not to invest because I was concerned with sales and marketing spend and wondered if the company would be able to grow.

So far, they have executed well, proven there is demand for their product, and the stock had increased around 80% since it IPO’d in October before I opened a position. Common investing “wisdom” would caution people from investing after a stock had increased that much in such a short period of time, but I love to see signs of strength from companies and believe this is an indication of more to come from Anaplan.

Shares Owned: 519Average Purchase Price: $44.67 (opened initial position May 30, 2019)Total Purchase Price: $23,200Current Share Price: $47.50Current Value: $24,700Unrealized Gain: +6.3%Position Size in Portfolio: 5.28% (small)

First Quarter 2020 Results

Total revenue: $75.8 million, up 47% year-over-year.

Subscription revenue: $65.1 million, up 45% year-over-year.

Billings $87.1 million, up 57% year-over-year

Dollar-based Net Expansion Rate 123%

Customers with Annual Recurring Revenue (ARR) >$250K = 279

GAAP operating loss: $37.1 million or 48.9% of total revenue, compared to $25.3 million in the first quarter of fiscal 2019 or 49.1% of total revenue.

Non-GAAP operating loss: $20.1 million, or 26.5% of total revenue, compared to $23.3 million in the first quarter of fiscal 2019, or 45.2% of total revenue.

GAAP loss per share: $0.30, compared to $1.21 in the first quarter of fiscal 2019. Non-GAAP loss per share was $0.16, compared to $0.25 in the first quarter of fiscal 2019.

Cash and Cash Equivalents: $332.7 million as of April 30, 2019.

Key Slides/Graphs

Subscription revenue is continuing to grow steadily. We should see increased growth in Q2 and Q4 if last years’ trends continue

I’ll keep an eye on this number. If we see growth of customers spending >$250k ARR begin to slow, it will be a red flag for future growth potential.

I expect margins to stay relatively flat with potential increases as the company and their products become more well-known/established.

Billings growth longs very strong.

Updated Full-Year 2020 Guidance

I generally don’t pay too much attention to guidance. The companies I am invested in usually provide very conservative guidance that they’ll easily beat. However, I DO pay attention when companies warn about guidance, lower guidance, or raise guidance.

Anaplan raised it’s guidance for full-year 2020:

Total revenue is now expected to be between $326 and $331 million (was between $310 and $314 million).

Non-GAAP operating margin is now expected to be between negative 22.5% and 23.5% (was between negative 26% and 27%).

Recent Highlights

I don’t pay too much attention to these. Of course companies are going to highlight recent successes, but results are far more important than self-selected business highlights. I learned this lesson with a company called Nutanix that I was previously invested in. Management boasted about all kinds of highlights, they were/are a leader in Gartner’s Magic Quadrant, but the results we relatively week and confusing for multiple quarters. The stock has suffered tremendously over the last year +.

There is at least one important benefit from being identified as a leader according to Gartner. It makes it easier for customers to legitimize using a “new” solution like Anaplan because of the recognition of Gartner’s name/ratings.

Anaplan Positioned as a Leader in 2019 Gartner Magic Quadrant for Sales and Operations Planning Systems of Differentiation.

MUFG Investor Services announces their choice to use Anaplan for clients’ real-time planning processes.

Anaplan announces CPX 2019 in San Francisco, expected to welcome over 2000 attendees from around the world June 10-12.

To be continued

That’s

11 min

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