Fri, May 1, 12:45 PM
Fri, May 1, 9:13 AM
Thu, Apr. 30, 5:40 PM
Thu, Apr. 30, 5:18 PM
- Constant Contact (NASDAQ:CTCT) sold off in postmarket trading, -9.9%, as it reduced guidance for the coming quarter and full year even as Q1 EPS beat expectations.
- "In the quarter we didn't deliver an acceleration in customer additions as expected, which resulted in missing our revenue goal," said CEO Gail Goodman, saying the mixed results "disappointed."
- Gross margin was 73%, up from a prior 72.5%. Adjusted EBITDA of $14.7M beat an expected $13M. Cash flow from operations was $20.2M, vs. a prior $11.1M. Capex of $5.3M, down from a prior $5.9M. Free cash flow of $15M.
- Ended Q1 with 645K unique customers, up from 635K in Q4 and 605K a year ago. ARPU of $47.09, up from prior year's $43.82 and Q4's $46.59.
- The company guided light for Q2, pointing to revenue of $91.5M-$92M (vs. expected $94.4M), and non-GAAP EPS of $0.21-$0.22 (vs. expected $0.23). For the full year, the company reduced revenue guidance to $371M-$377M from a prior $388M, and reduced EBITDA guidance to $73M-$75M from about $75.9M.
- Constant Contact guided for non-GAAP EPS of $1.29-$1.38, down from prior expectation of about $1.38.
- Press release
Fri, Apr. 17, 1:46 PM
- Cloud IT service management software leader ServiceNow is down 14.5% after providing soft guidance (thanks in part to forex) to go with a Q1 beat. Many high-beta enterprise tech names are off sharply amid a 1.5% drop for the Nasdaq.
- In addition to Salesforce and Workday (previous), cloud software firms posting big losses include NetSuite (N -4.8%), Constant Contact (CTCT -3.3%), InContact (SAAS -3.9%), Paycom (PAYC -3.6%), Ultimate Software (ULTI -3.6%), and Textura (TXTR -3.7%). NetSuite reports on April 23, Ultimate Software on April 28, Constant Contact on April 30, and Paycom on May 6.
- Big data/analytics software plays have also been hit hard. Tableau (DATA -6.3%), Splunk (SPLK -5.2%), Hortonworks (HDP -6%), and Varonis (VRNS -4.3%) are all off sharply. Though its growth rates and multiples are similar to those of many analytics software firms, ServiceNow generally isn't seen as an analytics play. This morning, D.A. Davidson launched coverage on Tableau and Splunk at Buy, and Hortonworks at Neutral.
- Tableau, which surged yesterday following bullish Stifel and William Blair coverage launches, reports on May 7. Stifel praised Tableau's "superior product performance and simplified user experience," data discovery market lead, international growth potential (less than 25% of license revenue is from outside of North America), and ability to capitalize on "free demo downloads by front-line information workers evangelizing [Tableau's] product." William Blair stated its survey work "indicates that the perceived value of Tableau exceeds that of other self-service [business intelligence] vendors."
- Pac Crest hiked its Splunk target to $82 yesterday after attending a user conference. "[T]he economic value derived from expanding Splunk implementations ... into new areas like security intelligence, compliance and real-time capacity planning results in cost avoidance that can far overshadow the historical pricing objections to Splunk. This is a significant change in customer behavior and pricing perception ... It was clear that the appetite of existing Splunk users to find new use cases remains fierce..."
Fri, Mar. 6, 2:54 PM
- With the Nasdaq down 1.1%, major tech decliners are outpacing major gainers by a sound margin.
- Notable gainers include gaming headset maker Turtle Beach (HEAR +6.8%), Chinese data center owner 21Vianet (VNET +3.6%), wireless charging tech developer Energous (WATT +2.7%), Chinese online retailer LightInTheBox (LITB +5.6%), and solar microinverter maker Enphase (ENPH +5.9%).
- Notable decliners include ultracapacitor maker Maxwell (MXWL -6.6%), healthcare IT giant Cerner (CERN -3.8%), enterprise storage hardware vendor Quantum (QTM -6%), cloud SMB marketing software vendor Constant Contact (CTCT -4.6%), 3D measurement/imaging system maker FARO Technologies (FARO -5.4%), PC/mobile peripherals giant Logitech (LOGI -4.6%), and cloud security/compliance software vendor Qualys (QLYS -4.2%).
- Energous is up 12% over the last two trading days; its Q4 report arrives on Monday afternoon. Maxwell was up sharply yesterday on an insider buy. Cerner closed yesterday near an all-time high of $73.24.
- Previously covered: YY, Finisar/JDS Uniphase, Violin Memory, Crossroads, Skullcandy, Neustar, Synacor, CyberArk, Autohome/Bitauto, Wave Systems
Fri, Jan. 30, 7:01 PM
- Constant Contact (CTCT -3.5%) was caught in the market's downdraft despite a solid earnings beat Thursday and some positive takes from analysts Friday.
- National Securities initiated coverage of the stock at Buy, with a price target of $50, based on the belief that Constant Contact should trade at a 50% discount to comparable firms' estimated average enterprise value/EBITDA ratio of 23x, as compared to the current 60% discount.
- Meanwhile, Oppenheimer reiterated their Outperform on the shares with a price target of $43.
- CTCT closed Friday at $37.82.
- Previously: Constant Contact operating numbers gain for Q4 (Jan. 29 2015)
- Previously: Constant Contact up 1.9% on Credit Suisse upgrade (Jan. 27 2015)
Tue, Jan. 27, 9:52 AM
- Credit Suisse's Michael Nemeroff has upgraded Constant Contact (CTCT +2.4%) to Outperform ahead of Thursday's Q4 report, and hiked his target by $12 to $46.
- Nemeroff sees the cloud e-mail marketing software vendor's revenue growth and margins both rising over the course of 2015 and 2016, driven by "an increasing mix of CTCT's bundled Toolkit product, which [Credit Suisse estimates] will generate higher overall ARPU and will cause revenue growth to accelerate towards the company's +20% growth target within the next two years.”
Oct. 31, 2014, 5:39 PM
Oct. 24, 2014, 2:45 PM
- Though its Q3 revenue was only in-line (EPS beat by $0,03), Constant Contact (NASDAQ:CTCT) is forecasting 2015 revenue growth of ~17%, above a 14.3% consensus. Adjusted EBITDA margin is expected to grow by ~150 bps.
- Q4 guidance is mixed: Revenue of $87.4M-$87.8M vs. a consensus of $87.2M and $0.32.
- In spite of intense competition in the cloud marketing automation space from the likes of Salesforce, Oracle, and Marketo, CTCT ended Q3 with 625K customers, up from 615K at the end of Q2 and 585K a year ago. ARPU rose to $44.89 from $44.40 in Q2 and $41.40 a year ago.
- Gross margin rose 60 bps Y/Y to 72.2%. GAAP opex rose 13% to $52.2M.
- Q3 results, PR
Oct. 3, 2014, 2:40 PM
- With industry M&A speculation refusing to let up, e-commerce software vendor Demandware (DWRE +16.5%) and cloud customer support software vendor Zendesk (ZEN +15.6%) are posting double-digit gains amid a market rally. NetSuite (N +5.5%), Constant Contact (CTCT +5.3%), and ServiceNow (NOW +4.2%) are also doing well.
- Cloud software stocks rallied in September after SAP struck an $8.3B deal to buy Concur. Earlier this week, Oracle suggested it's looking to make fresh software acquisitions of its own.
- NetSuite maintains close ties to Oracle; Larry Ellison is by far the company's largest shareholder. SAP bought Demandware/NetSuite rival hybris last year.
- Meanwhile, Salesforce (CRM +3%) is getting a lift from SocGen and Sterne Agee, each of whom have launched coverage with Buy ratings. Earlier today, Salesforce unveiled a version of its Desk.com low-end cloud customer support platform that's aimed at retail SMBs.
Aug. 29, 2014, 1:00 PM
- Low expectations and a high short interest (11.9M shares as of Aug. 15) are proving a good mix for Veeva (VEEV +18.1%) following its FQ2 beat and guidance hike. Several firms have raised their targets.
- Workday (WDAY +5.5%), which sold off yesterday (and took peers down with it) following its FQ2 report, is following Veeva higher. As are Veeva partner Salesforce (CRM +2.1%) and several other cloud software names. NOW +2.9%. CTCT +3.4%. JIVE +2.5%. CSOD +2%. ULTI +1.9%. MKTO +1.9%.
- "We like [Veeva's] momentum with new products, the pace of customer deployments, and view the second-half guidance as likely conservative," says Deutsche (Buy).
- Pac Crest (Outperform) likes the fact Veeva's billings and subscription revenue each rose over 60% Y/Y, and that its large deal activity also grew. It sees a $5B addressable market for life sciences CRM/content management software.
May 2, 2014, 9:47 AM
- Constant Contact (CTCT +6%) expects Q2 revenue of $81M-$81.3M and EPS of $0.18-$0.20, largely favorable to a consensus of $81M and $0.18.
- Q1 results were roughly in-line with the guidance provided in its positive April 8 pre-announcement, The company has reiterated the full-year revenue guidance ($330M) it gave at the time, and established full-year EPS guidance of $1.02 (consensus is at $1.00).
- As previously announced, unique customers rose by 10K Q/Q and 40K Y/Y to 605K. ARPU rose to $43.82 from $42.33 in Q4 and $40.60 a year ago. Monthly retention rate remained in a historical range of 97.3%-98.3%. Opex rose 10% Y/Y to $56M (compares with rev. growth of 15.6%).
- Baird has upgraded shares to Outperform, and set a $33 PT. The firm thinks improving client same-store sales will offset slowing customer adds.
- Q1 results, PR, CC transcript
Apr. 10, 2014, 11:36 AM
- IBM (IBM +1.1%) is acquiring Silverpop, a developer of cloud-based marketing automation software to 8K+ clients, for an undisclosed sum.
- Big Blue praises Silverpop's ability to enable personalized interactions with potential clients, and to provide "sophisticated automation capabilities more commonly applied in lower volume B2B scenarios to complex B2C environments."
- Its software will be leveraged by IBM's 140 Ready for Smarter Commerce marketing partners, and integrated within a new IBM cloud marketing suite - details for the latter are due in May.
- Silverpop competes to varying degrees against Oracle-acquired Eloqua and Responsys, Salesforce-acquired ExactTarget, and Adobe's Marketing Cloud platform. It also competes against Marketo (MKTO -7.5%) and Constant Contact (CTCT -4.5%), which are selling off hard today amid a tech rout. Both companies have been lifted by M&A speculation in the past.
- The companies are all looking to profit from a shift in IT spend towards CMOs. IDC has observed IBM's efforts in this area could lead it to face off more against ad agencies such as WPP and Omnicom.
- Past marketing-focused IBM acquisitions: DemandTec, Xtify, Unica
Apr. 9, 2014, 12:45 PM
Apr. 9, 2014, 9:14 AM
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