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BroadSoft, Inc. Discusses Q3 2013 Results (Webcast)Nov. 4, 2013
Mon, Aug. 4, 10:45 AM
- In addition to beating Q2 estimates, BroadSoft (NASDAQ:BSFT) is guiding for 2014 revenue of $207M-$213M and EPS of $1.26-$1.46, favorable to a consensus of $208.5M and $1.28.
- A soft Q3 is expected - revenue of $48M-$52M and EPS of $0.17-$0.30 vs. a consensus of $52.6M and $0.36 - prior to a strong Q4.
- Q2 billings totaled $59.2M, +30% Y/Y (compares with rev. growth of just 19%) above revenue of $52.5M. Software license billings rose 11% to $29.3M, and the deferred revenue balance grew 32% to $80.8M.
- A mix shift towards services led gross margin to fall to 76% from 82% a year ago. Opex fell to 58% of revenue from 61%.
- Along with its Q2 numbers, BroadSoft has announced it's buying SDD, a provider of software (both on-premise and hosted) that allows hospitality companies to deliver/manage VoIP and Internet services. BroadSoft has already launched a new offering (called UC-One Hospitality) that combines SDD's software with BroadSoft's unified communications products.
- Q2 results, PR
Mon, Aug. 4, 7:33 AM
Sun, Aug. 3, 5:30 PM
Wed, Jul. 30, 1:14 PM
- On top of beating Q2 estimates, RingCentral (RNG +18.1%) guided on its CC (transcript) for 2014 revenue of $213M-$216M, above a $209.4M consensus. EPS guidance of -$0.50 to -$0.54 is in-line with a -$0.53 consensus.
- Strong adoption for the RingCentral Office platform (covers VoIP, video, and conferencing services) helped fuel the Q2 beat. The company's monthly recurring subscription revenue run rate rose 9% Q/Q and 38% Y/Y to to $203.7M, with Office's run rate growing 11% Q/Q and 58% Y/Y to $139.2M.
- Gross margin rose 230 bps Y/Y to 63.6%. Heavy sales marketing/spend (46.2% of revenue, up from 42.7% a year ago) continues to pressure EPS. R&D fell to 19% of revenue from 22.2% a year ago, but up in absolute dollars.
- Peer 8x8 (EGHT +3.1%) and software provider BroadSoft (BSFT +2.7%) are following RingCentral higher. All three companies rose last week following 8x8's solid FQ1 report.
Thu, Jul. 24, 2:47 PM
- Following a healthy FQ1, 8x8 (EGHT +10%) expects FY15 (ends March '15) revenue to grow "at least 25%." The company previously guided for FY15 revenue to grow "approximately 25%." Net income is still expected to account for a high-single digit % of revenue.
- Average monthly service revenue per business customer rose to $293 from $287 in FQ4 and $263 a year ago. Notably, churn fell to just 0.4% from 1.2% in both FQ4 and the year-ago period.
- Service revenue rose 29% Y/Y to $34.3M, product revenue rose 32% to $2.8M. A 94% increase in channel/mid-market sales helped fuel the growth.
- GAAP opex rose 42% to $37.4M. Service margin was 80% vs. 79% in FQ4 and 82% a year ago.
- Fellow VoIP/unified communications service providers RingCentral (RNG +4.2%) and Vonage (VG +2.4%) are also rallying, as is software supplier BroadSoft (BSFT +2.8%).
- 8x8's FQ1 results, PR, CC transcript
Fri, Jun. 20, 1:27 PM
- Oracle missed FQ4 estimates thanks in part to weaker-than-expected license growth that has stoked fresh cloud competition fears. FQ1 guidance is in-line.
- Tibco, which has been dealing with competitive and execution issues for several quarters, posted FQ2 numbers that were slightly better than the outlook provided in a June 3 warning, but also issued weak FQ3 guidance.
- Many enterprise software names are trading lower, including several cloud software firms and a few companies viewed as big data/analytics plays: VMW -1.3%. SPLK -1.9%. DATA -2.3%. INFA -1.6%. MKTO -3.8%. JIVE -2.5%. CSLT -4.1%. BSFT -3.3%.
- Workday (WDAY -2.2%) is also among the decliners. Larry Ellison again went out of his way to take shots at the cloud HR leader during Oracle's earnings CC (transcript). "We already have a huge lead over Workday in cloud ERP ... In HCM, we are dominating Workday in Europe, and beating them in dozens of core HCM deals here in North America." Workday will probably beg to differ on the specifics.
Tue, May. 6, 8:19 AM
- Raymond James and Cowen have upgraded BroadSoft (BSFT) to Outperform after shares fell 19.4% due to yesterday's Q1 miss and soft Q2 EPS guidance.
- On the CC (transcript), BroadSoft mentioned weak North American software orders pressured Q1 results, but promised a Q2 rebound. Its gross margin decline was attributed to cloud business investments (affected subscription/maintenance margins), and its Q2 EPS forecast on sales/R&D investments.
- The company also stated a major deal with a major international carrier is now expected to produce $18M in 2014 revenue, up from a prior $15M, and reported of strong tier-1 interest in its BroadCloud unified communications managed services.
- Goldman's Simona Jankowski observed software license revenue would've been down ~30% Y/Y in Q1 if not for the large deal, and asked if weakness in other accounts was offsetting the deal's impact (given the new full-year forecast). CFO James Tholen insisted there weren't any "fundamental changes."
Mon, May. 5, 12:47 PM
Mon, May. 5, 12:26 PM
- In addition to missing Q1 estimates, BroadSoft (BSFT -20%) is guiding for Q2 revenue of $48M-$52M and EPS of $0.17-$0.31. While the former is in-line with a $50.4M consensus, the latter is below a $0.33 consensus.
- The company is reiterating full-year guidance for revenue of $206M-$212M and EPS of $1.26-$1.46; the consensus is at $208.8M and $1.35.
- Gross margin fell to 76% in Q1 from 83% in Q4 and 80% a year ago, taking a toll on EPS. Opex rose 20% Y/Y to $40.1M, outpacing revenue growth of 11%.
- Carrier VoIP software rival Mavenir (MVNR -4.2%) is following BroadSoft lower ahead of its Wednesday Q1 report.
- Q1 results, PR
Mon, May. 5, 9:11 AM
Mon, May. 5, 7:42 AM
Sun, May. 4, 5:30 PM
Wed, Apr. 30, 3:34 PM
- On its Q1 CC (transcript), AudioCodes (AUDC -13.3%) reiterated full-year guidance for revenue of $147M-$152M and EPS of $0.18-$0.22; the consensus is at $149.6M and $0.20.
- Core networking equipment revenue rose 15% Y/Y in Q1 vs. 16.7% in Q4 Managed/technical service revenue rose 21% vs. 20%. Opex rose 11% Y/Y to $21M.
- CFO Guy Avidan mentioned AudioCodes saw "some increase" Q/Q in sales of products related Microsoft Lync deployments (closely watched), and CEO Shabtain Adlersberg stated the company is seeing a "pickup in activity" in deployments with BroadSoft (BSFT +3.2%).
- FQ3 results, PR
Fri, Feb. 28, 7:45 AM
Fri, Feb. 28, 12:05 AM
Thu, Feb. 27, 5:30 PM
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BroadSoft, Inc. is a provider of software that enables fixed-line, mobile and cable service providers to deliver hosted, Unified Communications and other voice and multimedia services over their Internet protocol.
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