Fri, Jul. 24, 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
Thu, Jul. 23, 4:26 PM
Wed, Jul. 22, 5:35 PM
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Fri, Apr. 24, 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
Thu, Apr. 23, 4:15 PM
Wed, Apr. 22, 5:35 PM
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Tue, Feb. 10, 6:21 PM
- Though it beat Q4 estimates, Marketo (NASDAQ:MKTO) is guiding for Q1 EPS of -$0.20 to -$0.22 and full-year EPS of -$0.83 to -$0.87, below consensus estimates of -$0.16 and -$0.63. Sales guidance is stronger: Q1 revenue of $45M-$46M and full-year revenue of $204M-$206M, above consensus estimates of $44.6M and $202.4M.
- Heavy spending is contributing to the EPS outlook: GAAP operating expenses rose 36% Y/Y in Q4 to $45.1M. Sales/marketing spend accounted for $29.7M, and R&D just $8.3M.
- Adjusted calculated billings rose 43% Y/Y to $50M, exceeding revenue of $42.3M. That helped the deferred revenue balance grow 18% to $62.9M, and op. cash flow to come in at $3.2M (in spite of a $7.6M net loss).
- The customer count rose by 295 Q/Q to 3,794. Subscription dollar retention rate rose by 1% to 109%.
- Shares are down to $33.17 AH. Q4 results, PR.
Tue, Feb. 10, 4:12 PM
Mon, Feb. 9, 5:35 PM
Oct. 22, 2014, 5:26 PM
- Marketo (NASDAQ:MKTO) expects Q4 revenue of $40.3M-$40.8M and EPS of -$0.24 to -$0.26, above a consensus of $39.4M and -$0.30.
- The company's deferred revenue balance rose 74% Y/Y (exceeding rev. growth of 54%) to reach $53.2M. Customer count rose by 140 Q/Q to 3,499.
- Spending continues to pressure EPS: GAAP opex rose 54% Y/Y to $39.2M. Op. cash flow was -$1.2M vs. -$2.4M a year ago.
- Q3 results, PR
Oct. 22, 2014, 4:16 PM
Oct. 21, 2014, 5:35 PM
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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.
Aug. 28, 2014, 2:45 PM
- Workday (WDAY -4.7%) has received several target hikes after beating FQ2 estimates and upping its FY15 (ends Jan. '15) guidance. But there have also been some cautious notes focused on cloud HR/financial software giant's valuation.
- Citi observes Workday trades at 15x 2015E sales, and says it has trouble seeing upside catalysts at current levels. Goldman points out Workday is trading at 11x estimated enterprise value/billings even if its upside scenario plays out.
- Cantor (target raised to $121) sees several reasons to be bullish. Among them: The ramp of Workday's recently-launched recruiting product; the pending launch of Workday Student; an enterprise software upgrade cycle; strong international growth (echoes of Salesforce); and expected announcements at the November Workday Rising conference.
- Wedbush (target raised to $106) expects new big data/analytics products to be shown off at the conference. It also sees room for a fresh guidance hike in 3 months, though it thinks it might be smaller than yesterday's hike.
- Workday used its CC (transcript) to hike its FY15 billings guidance by $50M to $940M-$960M (above revenue guidance of $760M-$770M). FQ3 billings guidance is at $225M-$230M (above revenue guidance of $200M-$205M).
- Salesforce (CRM -2%) and several other cloud software names are following Workday lower. CSOD -3.3%. MKTO -3.3%. DWRE -2.2%. JIVE -1.6%. N -1.4%.
Jul. 30, 2014, 3:58 PM
- Ultimate Software (ULTI +7.4%) beat Q2 estimates on the back of a 26% Y/Y increase in recurring revenue (84% of total revenue). The cloud HR software vendor also disclosed on its CC (transcript) it added three new enterprise clients with 10K or more employees; the largest has 40K.
- Full-year guidance for 23% revenue growth (25% recurring growth) has been reiterated. Q3 guidance for revenue of $127M is roughly in-line with a $127.3M consensus.
- A number of cloud software peers have also rallied. Cloud HR/talent management peers Workday (WDAY +6.5%) and Cornerstone OnDemand (CSOD +5.1%) are among the biggest gainers, but others are also doing quite well. CRM +2.7%. NOW +4.7%. LPSN +5.3%. MKTO +4.1%. CNQR +4.8%. JIVE +3.6%. N +4.2%.
Jul. 24, 2014, 4:21 PM
MKTO vs. ETF Alternatives
Marketo Inc provides cloud-based marketing software platform that enables organizations to engage in modern relationship marketing. Its applications include Marketing Automation, Social Marketing, Sales Insight, and Revenue Analytics.
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