Competition The Issue As Marketo Pivots To Enterprise
Marketo Looks Good To Go For A Pre-Q4 Earnings Buy
Tue, Apr. 26, 4:08 PM
Mon, Apr. 25, 5:35 PM
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Thu, Apr. 21, 1:09 PM
- Three months ago, cloud/SaaS software firms sold off after cloud IT service management software (ITSM) firm ServiceNow (NOW +14.5%) missed its Q4 billings guidance and offered light 2016 sales guidance. Today, the group is rallying after ServiceNow beat Q1 estimates, provided in-line guidance, and reported billings of $376.7M, up 41% Y/Y and beating guidance of $360M-$365M. The company also reported a 48% Y/Y increase in clients with over $1M in annualized contract value, to 249.
- Cloud gainers include HR/financials software leader Workday (WDAY +2.3%), ERP/commerce software firm NetSuite (N +4.9%), marketing automation software firms Marketo (MKTO +3.1%) and HubSpot (HUBS +3.2%), talent management software firm Cornerstone OnDemand (CSOD +2.9%), customer support software firm Zendesk (ZEN +3.8%), collaboration/project management software firm Atlassian (TEAM +2.6%), enterprise healthcare software firm Castlight (CSLT +5.4%), and life sciences software firm Veeva (VEEV +2.4%). The Nasdaq is nearly flat.
- BTIG's Joel Fishbein has hiked his ServiceNow target by $5 to $85, while reiterating a Buy rating. "Strong results across the board suggest that the company continues to see success both in core ITSM and as a broader enterprise service tool. After enjoying most of its public life as a beat-and-raise stock, 2015 was somewhat messy; strong growth and good [key performance indicators] supportive of the bull thesis were overshadowed throughout the year by minor miscues -- a forecasting error, currency adjustments, and inconsistent billings reporting.
However, 1Q was clean, with strong billings growth, healthy upsells, and metrics showing growing contribution from non-IT services. Law of large numbers is still looming on the horizon but ServiceNow is on the path of being one of a few elite category-leading enterprise SaaS companies. We continue to be buyers of NOW."
Tue, Feb. 9, 5:31 PM
- Marketo (NASDAQ:MKTO) has jumped to $17.50 after hours after beating Q4 estimates (moreso on EPS than revenue) and reporting calculated billings rose 31% Y/Y to $68.1M (above revenue of $58.3M, +38%). Shares made a fresh 52-week low of $15.17 earlier today, and had closed just $0.53 above it.
- Guidance: 2016 guidance is for revenue of $267M-$277M (from 2015's $209.9M) and EPS of -$0.47 to -$0.53; the former is below a $277.1M consensus, and the latter above a -$0.58 consensus. Q1 guidance is for revenue of $61M-$62M and EPS of -$0.16 to -$0.18 vs. a consensus of $61.6M and -$0.19.
- Q4 details: The deferred revenue balance totaled $92M at the end of December, up 46% Y/Y but below guidance of $93M-$95M. GAAP operating expenses rose 22% Y/Y in Q4 to $54.8M, with $33.7M spent on sales/marketing. Marketo ended Q4 with $107.2M in cash and less than $3M in credit facility debt.
- Marketo's Q4 results, earnings release
Tue, Feb. 9, 4:09 PM
- Marketo (NASDAQ:MKTO): Q4 EPS of -$0.13 beats by $0.10.
- Revenue of $58.3M (+37.7% Y/Y) beats by $0.16M.
Mon, Feb. 8, 5:35 PM
Oct. 23, 2015, 2:37 AM
- Though Marketo (NASDAQ:MKTO) beat Q3 estimates, it's guiding for Q4 revenue of $57.5M-$58.5M and EPS of -$0.22 to -$0.24, below a consensus of $59M and -$0.21.
- On the earnings call (transcript), management stated its guidance reflects "a balanced view of what we think is possible and a cautiousness around the ramping of ... enterprise [sales] reps from a scale and ramp-up perspective."
- Calculated billings totaled $56.4M in Q3, +43% Y/Y and slightly above revenue of $54.9M (+40%). That helped the deferred revenue balance rise 54% Y/Y to $82.1M. Marketo expects to end seasonally strong Q4 with a deferred revenue balance of $93M-$95M, up 49% Y/Y at the midpoint.
- Shares finished after hours trading down 6.6%.
- Q3 results, PR
Oct. 22, 2015, 4:10 PM
- Marketo (NASDAQ:MKTO): Q3 EPS of -$0.12 beats by $0.06.
- Revenue of $54.9M (+39.7% Y/Y) beats by $0.2M.
- Shares -2.5%.
Oct. 21, 2015, 5:35 PM
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Jul. 24, 2015, 10:32 AM
- In addition to beating Q2 estimates, Marketo (NASDAQ:MKTO) has guided for 2015 revenue of $209M-$211M and EPS of -$0.75 to -$0.78, mostly above a consensus of $209.2M and -$0.83. Q3 guidance is for revenue of $53.5M-$55M and EPS of -$0.17 to -$0.19 vs. a consensus of $54.3M and -$0.20.
- Of note: As with many other cloud software companies, Marketo's free cash flow is much better than its net income, as a result of the company receiving subscription contract revenue up-front and recognizing it a quarter at a time. Q2 FCF was $5.5M, even as net income was -$6.7M (-$0.16/share).
- Calculated billings totaled $64.4M, well above revenue of $50.7M. Annual billings growth accelerated to 48% from Q1's 37%. That led the deferred revenue balance to rise 52% to $80.6M.
- GAAP operating expenses rose 52% Y/Y to $50.2M (exceeding revenue/billings growth). The cloud marketing automation software firm ended Q2 with 4,126 customers, up from 3,972 at the end of Q1 and 3,359 a year ago. $110.4M in cash was on the balance sheet.
- Q2 results, PR
Jul. 23, 2015, 4:26 PM
- Marketo (NASDAQ:MKTO): Q2 EPS of -$0.16 beats by $0.07.
- Revenue of $50.7M (+40.7% Y/Y) beats by $0.64M.
Jul. 22, 2015, 5:35 PM
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Apr. 24, 2015, 6:23 PM
- Marketo (NASDAQ:MKTO) sold off today in spite of beating Q1 estimates and issuing above-consensus sales guidance: The cloud marketing automation software provider expects Q2 revenue of $49.5M-$50.5M (consensus was at $49.2M) and 2015 revenue of $208M-$210M (consensus was at $205.5M).
- The Street might have been looking for better EPS guidance in light of the top-line strength: Q2 EPS guidance is at -$0.22 to -$0.24 (-$0.22 consensus), and full-year guidance at -$0.81 to -$0.85 (-$0.82 consensus).
- Calculated billings rose 37% Y/Y in Q1 to $49.9M, topping revenue of $46M (+42%), and the deferred revenue balance grew 6% Q/Q and 47% Y/Y to $66.9M. GAAP operating expenses rose 44% Y/Y to $48.5M. The customer count rose by 198 Q/Q to 3,972.
- Q1 results, PR
Apr. 23, 2015, 4:15 PM
- Marketo (NASDAQ:MKTO): Q1 EPS of -$0.20 beats by $0.01.
- Revenue of $46M (+42.5% Y/Y) beats by $0.78M.
Apr. 22, 2015, 5:35 PM
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Marketo, Inc. is a provider of a cloud-based marketing software platform that enables organizations to engage in modern relationship marketing. It specializes in marketing automation and sales effectiveness software for mid-size and enterprise business-to-business (B2B) companies. Its software... More
Industry: Application Software
Country: United States
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