Tue, Aug. 4, 11:13 AM
- Though it beat Q2 sales estimates (while missing on EPS), Demandware (NYSE:DWRE) has guided on its earnings call for Q3 revenue of $52.5M-$53.5M, below a $55.6M consensus. Full-year guidance has been kept at $230M-$235M (in-line with a $233.8M consensus, implies a big Q4).
- Top-line performance: Live customers rose by 16 Q/Q and 69 Y/Y in Q2 to 295; live sites rose by 75 Q/Q and 392 Y/Y to 1,316. Subscription revenue rose 45% Y/Y to $43.2M, and service/other revenue (boosted by the January acquisition of point-of-sale software vendor Tomax) 163% to $7M.
- Financials: Heavy spending pressured EPS: GAAP operating expenses rose 64% Y/Y to $57.7M. Sales/marketing spend totaled $29M, R&D $16.5M, and G&A $12.2M. Also: Gross margin fell to 69.8% from 72.8% a year ago. Demandware ended Q2 with $186.8M in cash, and no debt.
- Q2 results, PR
Tue, Aug. 4, 7:12 AM
Mon, Aug. 3, 5:30 PM
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Fri, Feb. 20, 2:53 PM
- After rising 3% yesterday in response to its Q4 revenue beat and strong guidance, Demandware (NYSE:DWRE) has blasted off today. Shares are at their highest levels since November.
- The e-commerce software provider guided on its CC (transcript) for Q1 revenue of $49M-$50M (above a $47.2M consensus) and full-year revenue of $230M-$235M (above a $224.1M consensus and good for 42% growth at the midpoint).
- Retail point-of-sale cloud software provider Tomax, which Demandware agreed to buy in January, is expected to contribute $23M to full-year revenue. Forex is expected to provide a $10M headwind to subscription revenue (Demandware depends heavily on European clients).
- The company ended Q4 with 267 live customers, +10% Q/Q and +315 Y/Y. 48 other customers were in the implementation stage.
Thu, Feb. 19, 7:04 AM
Wed, Feb. 18, 5:30 PM| Wed, Feb. 18, 5:30 PM | 7 Comments
Fri, Jan. 30, 11:54 AM
- Salesforce (CRM -2.2%), ServiceNow (NOW -2.2%), Paylocity (PCTY -5.8%), Castlight (CSLT -4.1%), Cornerstone OnDemand (CSOD -3.6%), InContact (SAAS -2.2%), and Zendesk (ZEN -2.1%) are selling off after cloud ERP/HR/e-commerce software vendor NetSuite (N -11.7%) offered light Q1 and 2015 sales guidance to go with a Q4 beat. The Nasdaq is down 0.4%.
- As one would expect, NetSuite states forex has much to do with its guidance. On the CC (transcript), CFO Ronald Gill noted "the weighted average value of the foreign currencies in which we recognize international revenue has fallen more than 8% against the dollar." However, it's worth noting only 27% of NetSuite's Q4 revenue was international.
- NetSuite's Q4 numbers were solid: Subscription/support revenue grew 34%, and billings rose 34% to $201M (well above revenue of $157.9M). 54 customers were added for NetSuite's SuiteCommerce e-commerce software platform - CEO Zach Nelson humbly observes that was more than 3x the 17 customer adds rival Demandware (DWRE -1.6%) reported for Q3 (a seasonally weaker quarter).
- ServiceNow, the top player in the cloud IT service desk software market, provided above-consensus guidance on Wednesday.
Nov. 4, 2014, 12:51 PM
- With a Q3 beat on the books, Demandware (DWRE +1.8%) used its Q3 CC (transcript) to hike its full-year revenue guidance to $154.75M-$155.25M from $150M-$151M; consensus is at $150.7M.
- Net income is expected to be in a range of $1.3M-$2.3M; that suggests EPS will be above a -$0.05 consensus. For now, 2015 subscription revenue guidance of $200M is unchanged. "We will further refine our guidance for 2015 on the year-end call in February once we see how our customers grow this holiday season."
- The e-commerce software vendor ended Q3 with 243 live customers, up by 17 Q/Q and 59 Y/Y. Shares sold off three months ago after Demandware reported live customers grew by only 11 Q/Q in Q2. Live sites are now above 1K; they were at 924 at the end of Q2.
- In spite of his company's heavy reliance on European clients, CFO Tim Adams insisted forex had a "pretty immaterial" impact on Demandware's income statement. "The more significant piece, which hits the other expense item, is really taking the cash that we had on the balance sheet in foreign currency."
- Q3 results, PR
Nov. 4, 2014, 7:05 AM
Nov. 3, 2014, 5:30 PM
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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%.
Aug. 13, 2014, 10:09 AM
- Goldman's Greg Dunham has upgraded Demandware (DWRE +5.3%) to Buy, and set a $70 target. "We see current levels (7.7x 2015 EV/Sales versus the group at 6.0x despite 50% higher growth) as an opportunity to buy one of the most differentiated SaaS offerings with strong visibility to 40% plus revenue growth the next three years"
- Dunham considers the huge selloff that followed the e-commerce software vendor's Q2 report (caused by soft customer adds) as overdone, and thinks results can beat estimates on the back of improving bookings growth. His 2015 revenue forecast is 6% above consensus.
Aug. 5, 2014, 1:57 PM
- Demandware (NYSE:DWRE) used its Q2 CC (transcript) to up its full-year revenue guidance by $2.5M to $150M-$151M (above a $148.5M consensus). Q3 revenue guidance of $34.75M-$35.25M is in-line with a $34.9M consensus.
- However, the e-commerce software provider also admitted Q2 customer adds weren't as strong as expected, and that a few major deals were pushed out. Demandware ended Q2 with 226 live customers, up by 64 Y/Y but only 11 Q/Q.
- Nonetheless, subscription revenue rose 56% Y/Y to $32.5M. Live sites grew 39% to 924.
- Separately, Demandware has announced CEO Tom Ebling has been named chairman. He replaces founder Stephan Schambach, who will stay on the board as chairman emeritus.
- Q2 results, PR
Aug. 5, 2014, 7:04 AM
DWRE vs. ETF Alternatives
Demandware Inc provides enterprise-class cloud digital commerce solutions, which includes ecommerce, order management and predictive intelligence applications, for retailers and branded manufacturers.
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