Tangoe down 31.4% on Q2 miss, weak Q3/2015 guidance
Aug. 07, 2015 11:47 AM ETTangoe (TNGO)By: Eric Jhonsa, SA News Editor
- In addition to missing Q2 estimates, Tangoe (OTC:TNGO) is guiding for Q3 revenue of $58M-$59.5M and EPS of $0.10-$0.11 (below a consensus of $65.5M and $0.19), and 2015 revenue of $227M-$231M and EPS of $0.53-$0.58 (below a consensus of $245.3M and $0.75).
- Like many enterprise software firms reporting similar shortfalls, Tangoe blames "sales execution challenges," and says it's taking steps to address the issue. The company named a new sales chief - former IBM software sales exec Michael Pray - in early July.
- CEO Al Subbloie on the earnings call (transcript): "[W]e have had issues related to accurately forecasting when our larger deals will close. And there is still more work to be done with respect to moving our sales organization more towards strategic selling as we begin to roll out the full capabilities of our Matrix platform."
- 30 new customers were added in Q2, at the low end of Tangoe's quarterly target range of 30-40, and several seven-figure deals were pushed out. One of the deals was closed in July, and "active discussions" are said to continue for the others.
- Deutsche and Northland have downgraded to neutral ratings.
- Q2 results, PR