NICE Paying Quite The Price For 'Cloudification' Via inContact
inContact Should Get A Lift From The Rising Tide
Darspal S Mann
Darspal S Mann
inContact Executing On An Accelerating Opportunity Set
Wed, May 18, 12:46 PM
Wed, May 18, 9:15 AM
Wed, May 18, 8:01 AM
- Israeli software provider Nice Systems (NASDAQ:NICE) agrees to acquire U.S.-based inContact (NASDAQ:SAAS), a maker of cloud software for call centers, for ~$940M.
- Nice will pay $14/share in cash, a 55% premium to yesterday's closing price, and plans to finance the deal with cash on hand plus debt of up to $475M.
- Analysts say the acquisition will help Nice, which currently focuses on very large financial companies, to expand into the mid-market and expand its product range.
- SAAS +53.7% premarket, NICE +2.3%.
Tue, Feb. 16, 4:26 PM
- InContact (SAAS +7.5%) is up 3.4% after hours after posting record results for its fourth quarter and guiding above analyst expectations for 2016 EPS.
- EBITDA of $5.8M nearly quadrupled from the prior year and beat an expected $3.83M. Gross margin for the software segment bumped up to 60% from 59%; on a non-GAAP basis, it was 64% (up from a prior 63%). Network connectivity gross margin was 40%, up from a previous 36%.
- Revenue by segment: Software, $40.5M (up 33.6%); Network connectivity, $21M (up 10%). About 97% of network connectivity revenues were derived from contracts with customers using the company's contact center software.
- The company closed 144 total contracts in the quarter (93 new logo customers, 51 expansion deals).
- For 2016, it's expecting software revenues of $177M-$183M (growth of 23-27%) and total revenues of $257M-$263M, vs. a consensus of $258.4M. It's forecasting a net loss (non-GAAP) of $0.06 to $0.09 per share vs. expectations for a loss of $0.33/share.
- Conference call to come at 4:30 p.m. ET.
- Press Release
Tue, Feb. 16, 4:12 PM
Mon, Feb. 8, 2:37 PM
- Many tech stocks are seeing 6%+ losses as investors flee to safety yet again. The Nasdaq is down 3.4%, and the S&P 2.7%.
- As was the case on Friday following Tableau and LinkedIn's disappointing guidance, a slew of enterprise tech stocks are seeing big losses, with cloud software and security tech names well-represented on the casualty list.
- Also: Solar stocks are having another brutal day (TAN -6.7%) as energy stocks get routed amid fears Chesapeake Energy is close to bankruptcy. WTI crude oil is once more near $30/barrel.
- Enterprise software decliners: Adobe (ADBE -9.6%), Paylocity (PCTY -19.1%), Salesforce (CRM -9.9%), Workday (WDAY -12%), Guidewire (GWRE -12.5%), ServiceNow (NOW -11.5%), Zendesk (ZEN -13.8%), Paycom (PAYC -13.4%), Marin Software (MRIN -10.3%), Castlight (CSLT -8.4%), Cornerstone OnDemand (CSOD -12.1%), Atlassian (TEAM -13.2%), inContact (SAAS -9.6%), and Bazaarvoice (BV -14.5%).
- Enterprise security decliners: Palo Alto Networks (PANW -12.2%), FireEye (FEYE -9.8%), CyberArk (CYBR -11.5%), Proofpoint (PFPT -12.7%), Qualys (QLYS -8.9%), Imperva (IMPV -9.7%), Rapid7 (RPD -9.4%), and Barracuda (CUDA -8.4%).
- Solar decliners: SunEdison (SUNE -11.3%), SunPower (SPWR -8.8%), JinkoSolar (JKS -7.6%), SolarEdge (SEDG -7.9%), Yingli (YGE -7.1%), TerraForm Power (TERP -10.7%), and TerraForm Global (GLBL -9.2%).
- Other major decliners: Micron (MU -9.1%), Western Digital (WDC -10.5%), Arista (ANET -10.9%), Universal Display (OLED -10.6%), Rackspace (RAX -11.3%), Fitbit (FIT -8.7%), Nimble Storage (NMBL -11.3%), Sierra Wireless (SWIR -9.9%), Rocket Fuel (FUEL -9.8%), Knowles (KN -9%), Mitel (MITL -8.9%), and Alarm.com (ALRM -8.9%).
- Previously covered: Yelp, Cognizant, Tableau, Globant, Ambarella, European tech stocks
Fri, Feb. 5, 3:59 PM
- Add Red Hat (RHT -8.1%), Autodesk (ADSK -6.9%), and Teradata (TDC -8%) to the list of enterprise tech firms nosediving following weak Q1/2016 guidance from business intelligence/data visualization software firm Tableau and professional social networking/online jobs leader LinkedIn. The Nasdaq is down 3.4%, and the S&P 2%, in the wake of this morning's jobs report.
- Other big decliners include Varonis (VRNS -13.4%), Gigamon (GIMO -9.7%), Pegasystems (PEGA -10.3%), SGI (SGI -7.5%), LogMeIn (LOGM -8.6%), inContact (SAAS -10.8%), Attunity (ATTU -14.4%), Textura (TXTR -6.8%), and Tableau rival MicroStrategy (MSTR -6.6%). A slew of other enterprise names were previously covered here - the group includes many cloud software and security tech firms.
- Teradata is just a day removed from rallying in the wake of a Q4 sales beat and healthy 2016 guidance.
Oct. 30, 2015, 12:45 PM
Oct. 29, 2015, 5:17 PM
- InContact (SAAS -2.4%) has jumped 20.2% in postmarket action after its Q3 report showed beats on top and bottom lines and boosted full-year guidance.
- Software revenues were a strength and margins grew substantially as well: Operating margin improved by 50% and gross margin overall rose to 52% from 47%. Software gross margin rose to 60% vs. a year-ago 54%.
- The company posted a net loss of $5.7M, narrower than the previous year's loss of $6.7M. EBITDA of $4M quadrupled from last year and beat an expected $2.9M.
- Revenue by segment: Software, $36.7M (up 39.7%); Network connectivity, $19.4M (up 8.2%).
- For full 2016, the company is guiding to total revenues of $254M-$262M (above a consensus of $250M) and software revenues of $175M-$182M.
Oct. 12, 2015, 10:14 AM
- InContact (NASDAQ:SAAS) is up 2.6% after saying it sees preliminary Q3 revenues coming in to the high side of consensus.
- It's expecting revenues of about $55.5M (up 26% Y/Y), over a consensus of $52.4M. Software revenues are expected at $36.5M (up 39%).
- Annualized monthly recurring software revenues are expected to increase 49% Y/Y.
- The company will report results and hold a conference call after the market close on Oct. 29.
- Previously: InContact swings to loss, grows revenue 29% (Aug. 06 2015)
Aug. 10, 2015, 10:03 AM
- InContact (SAAS +5.2%) has tapped Rajeev Shrivastava as senior VP and chief strategy officer, a newly created role to handle company strategy and management of its partner products as well as business development.
- Shrivastava was most recently with Rackspace and has nearly 20 years of expertise in the area. He also has long experience in the contact center industry.
- Previously: InContact tumbles 28%; still confident in recurring growth (Aug. 07 2015)
Aug. 7, 2015, 4:28 PM
- InContact (NASDAQ:SAAS) opened down significantly, and shed even more through the day on 10 times average volume to finish down 28.4% after yesterday's earnings report where it swung to a net loss.
- On the company's earnings call, CEO Paul Jarman said management was confident they could grow recurring software revenues above 30% despite the Q2 bookings growth being just 3%, pointing to the importance of same-store sales, the actual dollar value of bookings growing faster than bookings themselves, and confidence in the second-half pipeline.
- "We've expanded our partner channel, we've hired additional salespeople, and we are working on a number of significant opportunities, some of which moved from second to third quarter," Jarman said.
- A couple of bigger deals moved out of Q2, Jarman elaborated, but "some have closed and some are closing" now in Q3, for "significant" numbers of seats compared to average.
- Previously: InContact swings to loss, grows revenue 29% (Aug. 06 2015)
Aug. 7, 2015, 12:44 PM
May 7, 2015, 5:07 PM
- inContact (NASDAQ:SAAS): Q1 EPS of -$0.10 in-line.
- Revenue of $51.3M (+38.5% Y/Y) beats by $2.06M.
- Shares +3.1% AH.
Apr. 17, 2015, 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..."
Mar. 24, 2015, 9:18 AM
inContact, Inc. operates as a reseller of network connectivity services, which provides cloud contact center software solutions. It helps contact centers around the world create effective customer experiences through powerful portfolio of cloud contact center call routing, self-service and agent... More
Industry: Application Software
Country: United States
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