- Third Quarter Subscription Revenue up 33.1% Year-Over-Year
- Remaining Performance Obligation of $923.2 million, up 24.8%
Year-Over-Year
- Dollar-Based Net Expansion of 119%
Anaplan, Inc. (NYSE:PLAN), provider of a leading cloud-native
platform for orchestrating business performance, today announced
financial results for its third quarter ended October 31, 2021.
“With a constantly changing environment, we solve our customers’
complex challenges. I am excited about our innovation with the
Anaplan Autonomous Enterprise, which provides a real-time,
scalable, and intelligent approach to plan, analyze and act,” said
Frank Calderoni, chief executive officer of Anaplan. “We delivered
another solid quarter and the robust demand for an enterprise-wide
planning solution positions us well to capitalize on growth
opportunities.”
Third Quarter Fiscal 2022 Financial
Results
- Total revenue was $155.3 million, an increase of 35.2%
year-over-year. Subscription revenue was $139.3 million, an
increase of 33.1% year-over-year.
- GAAP operating loss was $48.2 million or 31.0% of total
revenue, compared to $35.9 million in the third quarter of fiscal
2021 or 31.2% of total revenue. Non-GAAP operating loss was $6.9
million or 4.4% of total revenue, compared to $6.1 million in the
third quarter of fiscal 2021 or 5.3% of total revenue.
- GAAP loss per share was $0.28, compared to $0.26 in the third
quarter of fiscal 2021. Non-GAAP loss per share was $0.05, flat
compared to the third quarter of fiscal 2021.
- Cash and Cash Equivalents were $312.4 million as of October 31,
2021.
Financial Outlook
The company is providing the following guidance for its fourth
quarter fiscal 2022:
- Total revenue is expected to be between $154.0 and $155.0
million.
- Non-GAAP operating margin is expected to be between negative
10.0% and 11.0%.
- As a baseline for third quarter, we expect billings to be in
the range of $213 million to $214 million.
The company is updating its previous guidance provided on August
31, 2021 for its full year fiscal 2022:
- Total revenue is expected to be between $583.5 and $584.5
million (was between $571.5 and $573.5 million).
- Non-GAAP operating margin is expected to be between negative
7.5% and 8.5%.
The guidance provided above are forward-looking statements and
actual results may differ materially. Refer to the “Forward-Looking
Statements” safe harbor section below for information on the
factors that could cause our actual results to differ materially
from these forward-looking statements.
The section titled “Non-GAAP Financial Measures” below contains
a description of the non-GAAP financial measures used in this press
release, definitions of our operating metrics and a reconciliation
of GAAP and non-GAAP financial measures is contained in the tables
below. A reconciliation of non-GAAP measures to corresponding GAAP
measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the
potential variability of, costs and expenses, including the impact
of stock-based compensation, which is dependent on factors such as
future stock price and volume of equity awards granted in the
future, that may be incurred in the future and therefore, cannot be
reasonably predicted. The effect of these excluded items may be
significant.
Recent Highlights
- Anaplan introduced next-generation Anaplan Polaris™ Calculation
Engine for early adopters
- Anaplan on AWS launched on the AWS Marketplace for customers in
the United States
- Anaplan on Google Cloud Platform launched for customers in
Japan, the partnership’s second market
- Anaplan announced as a Google Cloud partner for Supply Chain
Twin solution
- Gartner named Anaplan a 2021 Gartner Peer Insights Customers’
Choice for Cloud Financial Planning & Analysis Solutions and
Sales Performance Management
- Correlation One and Anaplan expanded Anaplan for All to help
customers and partners build diverse Anaplan talent ecosystems
Webcast and Conference Call Information
Event: Anaplan Third Quarter Fiscal Year 2022 Earnings
Conference Call When: Tuesday, November 23, 2021
Time: 2:00 p.m. PT / 5:00 p.m. ET Live Call: Please
see online registration Replay: (800) 770-2030 or (647)
362-9199 with passcode 47794 Live Webcast:
https://investors.anaplan.com or with replay available for 12
months
Upcoming Investor Events
Anaplan management will be participating in the following
investor conferences:
Barclays Global Technology, Media and Telecommunications
Conference Tuesday, December 7, 2021 10:50am PT/1:50pm ET
About Anaplan
Anaplan (NYSE: PLAN) is a transformative way to see, plan, and
run your business. Using our proprietary Hyperblock™ technology,
Anaplan lets you contextualize real-time performance, and forecast
future outcomes for faster, confident decisions. Because connecting
strategy and plans to collaborative execution across your
enterprise is required to move business FORWARD today. Based in San
Francisco, Anaplan has over 175 partners and more than 1,800
customers worldwide. To learn more, visit Anaplan.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, each as
amended, including all statements other than statements of
historical fact contained in this press release and includes,
without limitation, statements about the impact of the COVID-19
pandemic and resulting global economic uncertainty, the quotations
from management, statements regarding market demand, market
opportunity, competitive position including of the company’s
solutions compared to the offerings of competitors, use of the
company’s solutions and the results of such use, statements
regarding the need for, or interest in, enterprise planning or
digital transformation, statements about the company’s plans,
strategies and prospects, statements about offerings, solutions,
services and functionality, statements regarding growth and
momentum, statements about customers’ challenges, plans and
priorities, the financial outlook and guidance, which may include
expected GAAP and non-GAAP financial and other results, for the
company’s fourth fiscal quarter ending January 31, 2022 and for the
full fiscal year ending January 31, 2022 and the underlying
assumptions, and statements about events and trends including
events and trends that we believe may affect our financial
condition, results of operations, short- and long-term business
operations and objectives, and financial needs. These statements
identify prospective information and may include words such as
“expects,” “intends,” “continue,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “projects,” “potential,”
“should,” “may,” “will,” or the negative version of these words,
variations of these words and comparable terminology. These
forward-looking statements are based on information available to
the company as of the date of this press release and are based on
management’s current views and assumptions. These forward-looking
statements are conditioned upon and also involve a number of known
and unknown risks, uncertainties, and other factors that could
cause actual results, performance or events to differ materially
from those anticipated by these forward-looking statements. Such
risks, uncertainties, and other factors may be beyond the company’s
control and may pose a risk to the company’s operating and
financial condition. Such risks and uncertainties include, but are
not limited to, the following risks: the ongoing COVID-19 pandemic,
and resulting global economic uncertainty, has impacted how we, our
customers, and our partners are operating, and could result in a
material adverse effect on our business, financial condition,
operating results and cash flows; we have a limited history of
operating at our current scale and under our current strategy,
which makes it difficult to predict our future operating results,
and we may not achieve our expected operating results in the
future; our recent revenue growth rates may not be indicative of
our future performance or growth; we have a history of net losses,
we anticipate increasing our operating expenses in the future, and
we do not expect to be profitable for the near future; our
quarterly results may fluctuate significantly and may not fully
reflect the underlying performance of our business; we have
experienced rapid growth and expect to continue to invest in our
growth in the future, and if we fail to manage our growth
effectively, we may be unable to execute our business plan,
maintain high levels of service, or adequately address competitive
challenges and our business, financial condition and results of
operations may be adversely affected; we derive substantially all
of our revenue from a single software platform and if our platform
fails to satisfy customer demands or to achieve widespread market
acceptance it would adversely affect our business, operating
results, financial condition, and growth prospects; if we are
unable to attract new customers, both domestically and
internationally, the growth of our revenue will be adversely
affected and our business may be harmed; our business depends
substantially on our customers renewing their subscriptions and
expanding their use of our platform and if we fail to achieve
renewals or expansions or our customers renew or expand their
subscriptions on less favorable terms or if they fail to add more
users in more functional areas or upgrade to a higher level of
functionality on our platform, our business and operating results
will be adversely affected; failure to effectively expand our sales
and marketing capabilities, including to hire and retain direct
sales personnel, could harm our ability to increase our customer
base and achieve broader market acceptance of our service; our
growth depends in part on the success of our strategic
relationships with third parties and their continued performance;
if our customers and partners do not have access to highly skilled
and trained users of our platform, our customers may not be able to
unlock the full potential of our platform, customer satisfaction
may suffer, and our results of operations, financial condition and
growth prospects may be adversely affected; if we fail to continue
to enhance our platform, satisfy the cloud infrastructure
priorities of our clients or adapt to rapid technological change,
our ability to remain competitive could be impaired; if we
experience a security incident affecting our platform, networks,
systems or data or the data of our customers, or are perceived to
have experienced such a security incident, our platform may be
perceived as not being secure, our reputation may be harmed,
customers may reduce the use of or stop using our platform, we may
incur significant liabilities, and our business could be materially
adversely affected; real or perceived errors, failures, bugs,
service outages, or disruptions in our platform could adversely
affect our reputation and harm our business; we depend on the
experience and expertise of our senior management team and certain
key employees, especially engineering, research and development and
sales personnel, and our inability to retain these executive
officers and key employees or recruit them in a timely manner,
could harm our business, operating results, and financial
condition; the markets in which we participate are intensely
competitive, and if we do not compete effectively, our business and
operating results could be adversely affected; we collect, process
and store personal information and furthermore, our platform could
be used by customers to do the same, and evolving domestic and
international privacy and security laws, regulations and other
obligations could result in additional costs and liabilities to us
or inhibit sales of our platform. Furthermore, the additional or
unforeseen effects from the COVID-19 pandemic and the global
economic climate may amplify many of these risks. Information
concerning risks, uncertainties and other factors that could cause
results to differ materially from the expectations described in
this press release is contained in the company’s filings with the
U.S. Securities and Exchange Commission (“SEC”), including its
annual report on Form 10-K filed with the SEC on March 12, 2021,
and other documents the company may file with or furnish to the SEC
from time to time such as annual reports on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K. These
forward-looking statements should not be relied upon as
representing the company’s views as of any subsequent date and the
company undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made. The information contained in, or that can be accessed
through, Anaplan’s website and social media channels are not part
of this press release.
Preliminary Condensed Consolidated
Statements of Operations
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended October
31,
Nine Months Ended October 31,
(In thousands, except per share
amounts)
2021
2020
2021
2020
Revenue:
Subscription revenue
$
139,343
$
104,707
$
388,437
$
295,648
Professional services revenue
16,005
10,168
41,060
29,582
Total revenue
155,348
114,875
429,497
325,230
Cost of revenue:
Cost of subscription revenue (1)
25,627
19,187
69,601
50,520
Cost of professional services revenue
(1)
16,512
10,188
41,586
29,037
Total cost of revenue
42,139
29,375
111,187
79,557
Gross profit
113,209
85,500
318,310
245,673
Operating expenses:
Research and development (1)
40,782
24,629
110,211
72,986
Sales and marketing (1)
92,859
73,893
277,610
218,481
General and administrative (1)
27,732
22,851
77,362
66,514
Total operating expenses
161,373
121,373
465,183
357,981
Loss from operations
(48,164
)
(35,873
)
(146,873
)
(112,308
)
Interest income (expense), net
(122
)
(208
)
(404
)
119
Other income (expense), net
(368
)
(291
)
(3,202
)
3,385
Loss before income taxes
(48,654
)
(36,372
)
(150,479
)
(108,804
)
Benefit from (provision for) income
taxes
7,676
(420
)
6,889
(3,114
)
Net loss
$
(40,978
)
$
(36,792
)
$
(143,590
)
$
(111,918
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.28
)
$
(0.26
)
$
(0.99
)
$
(0.81
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
146,966
140,603
145,549
138,448
(1) Includes stock-based compensation
expense as follows:
Cost of subscription revenue
$
2,184
$
953
$
5,536
$
2,537
Cost of professional services revenue
1,170
506
2,992
1,706
Research and development
9,748
5,235
25,098
13,261
Sales and marketing
16,907
12,570
51,604
33,814
General and administrative
8,984
7,696
23,292
23,114
Total stock-based compensation expense
$
38,993
$
26,960
$
108,522
$
74,432
Preliminary Condensed Consolidated
Balance Sheets
(In thousands)
(Unaudited)
As of
October 31, 2021
January 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
312,367
$
320,990
Accounts receivable, net
138,825
147,005
Deferred commissions, current portion
43,309
36,797
Prepaid expenses and other current
assets
27,295
24,252
Total current assets
521,796
529,044
Property and equipment, net
60,912
51,603
Deferred commissions, net of current
portion
92,787
82,405
Goodwill
32,379
32,379
Operating lease right-of-use asset
33,587
33,985
Other noncurrent assets
17,027
9,709
TOTAL ASSETS
$
758,488
$
739,125
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
10,227
$
7,949
Accrued expenses
103,651
101,507
Deferred revenue, current portion
320,064
287,778
Operating lease liabilities, current
portion
9,576
7,951
Total current liabilities
443,518
405,185
Deferred revenue, net of current
portion
3,658
7,765
Operating lease liabilities, net of
current portion
28,580
30,130
Other noncurrent liabilities
17,652
18,032
TOTAL LIABILITIES
493,408
461,112
Stockholders’ equity:
Common stock
14
14
Accumulated other comprehensive loss
(9,338)
(7,528)
Additional paid-in capital
1,064,972
932,505
Accumulated deficit
(790,568)
(646,978)
TOTAL STOCKHOLDERS’ EQUITY
265,080
278,013
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
758,488
$
739,125
Preliminary Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended October 31,
2021
2020
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss
$
(143,590
)
$
(111,918
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
21,465
18,934
Amortization of deferred commissions
31,003
24,418
Stock-based compensation
108,522
74,432
Reduction of operating lease right-of-use
assets and accretion of operating lease liabilities
7,549
7,642
Foreign currency remeasurement losses
(gains)
1,565
(3,178
)
Release of deferred tax valuation
allowance
(7,639
)
—
Other non-cash items
582
2,609
Changes in operating assets and
liabilities:
Accounts receivable
7,241
(22,012
)
Prepaid expenses and other current
assets
(3,143
)
1,290
Other noncurrent assets
(698
)
(1,376
)
Deferred commissions
(49,292
)
(43,439
)
Accounts payable and accrued expenses
5,620
10,271
Deferred revenue
29,304
26,831
Payments for operating lease liabilities,
net
(6,956
)
(6,907
)
Other noncurrent liabilities
554
7,468
Net cash provided by (used in) operating
activities
2,087
(14,935
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and equipment
(9,089
)
(5,243
)
Capitalized internal-use software
(10,207
)
(7,666
)
Net cash used in investing activities
(19,296
)
(12,909
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from exercise of stock
options
7,891
12,575
Proceeds from employee stock purchase
plan
11,514
9,481
Principal payments on capital lease
obligations
(7,579
)
(6,160
)
Net cash provided by financing
activities
11,826
15,896
Effect of exchange rate changes on cash
and cash equivalents
(3,240
)
1,005
NET DECREASE IN CASH, CASH EQUIVALENTS,
AND RESTRICTED CASH
(8,623
)
(10,943
)
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH - Beginning of period
320,990
309,894
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH - End of period
$
312,367
$
298,951
Reconciliation of GAAP to Non-GAAP
Financial Measures
(In thousands, except percentages and
per share amounts)
(Unaudited)
Three Months Ended October
31,
Nine Months Ended October 31,
(In thousands, except percentages and per
share amounts)
2021
2020
2021
2020
Revenue
$
155,348
$
114,875
$
429,497
$
325,230
GAAP operating loss
$
(48,164
)
$
(35,873
)
$
(146,873
)
$
(112,308
)
Stock-based compensation
38,993
26,960
108,522
74,432
Employer payroll tax expense related to
employee stock plans
1,334
1,622
4,936
4,982
Business combination and other related
cost
644
880
2,205
2,835
Amortization of acquired intangibles
335
335
1,005
1,005
Non-GAAP operating loss
$
(6,858
)
$
(6,076
)
$
(30,205
)
$
(29,054
)
GAAP operating margin %
-31.0
%
-31.2
%
-34.2
%
-34.5
%
Stock-based compensation %
25.1
%
23.5
%
25.3
%
22.9
%
Employer payroll tax expense related to
employee stock plans %
0.9
%
1.4
%
1.2
%
1.5
%
Business combination and other related
cost %
0.4
%
0.7
%
0.5
%
0.9
%
Amortization of acquired intangibles %
0.2
%
0.3
%
0.2
%
0.3
%
Non-GAAP operating margin %
-4.4
%
-5.3
%
-7.0
%
-8.9
%
GAAP net loss
$
(40,978
)
$
(36,792
)
$
(143,590
)
$
(111,918
)
Stock-based compensation
38,993
26,960
108,522
74,432
Employer payroll tax expense related to
employee stock plans
1,334
1,622
4,936
4,982
Business combination and other related
cost
644
880
2,205
2,835
Amortization of acquired intangibles
335
335
1,005
1,005
Non-GAAP tax adjustments
(7,639
)
—
(7,639
)
1,250
Non-GAAP net loss
$
(7,311
)
$
(6,995
)
$
(34,561
)
$
(27,414
)
GAAP net loss per share, basic and
diluted
$
(0.28
)
$
(0.26
)
$
(0.99
)
$
(0.81
)
Stock-based compensation
0.27
0.19
0.74
0.54
Employer payroll tax expense related to
employee stock plans
0.01
0.01
0.03
0.03
Business combination and other related
cost
—
0.01
0.02
0.02
Amortization of acquired intangibles
—
—
0.01
0.01
Non-GAAP tax adjustments
(0.05
)
—
(0.05
)
0.01
Non-GAAP net loss per share
$
(0.05
)
$
(0.05
)
$
(0.24
)
$
(0.20
)
Shares used to compute GAAP net loss per
share attributable to common stockholders, basic and diluted
146,966
140,603
145,549
138,448
Shares used to compute Non-GAAP net loss
per share
146,966
140,603
145,549
138,448
GAAP net cash provided by (used in)
operating activities
$
5,560
$
(6,479
)
$
2,087
$
(14,935
)
Purchase of property and equipment
(2,721
)
(247
)
(9,089
)
(5,243
)
Capitalized internal-use software
(3,672
)
(2,286
)
(10,207
)
(7,666
)
Non-GAAP free cash flow
$
(833
)
$
(9,012
)
$
(17,209
)
$
(27,844
)
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this press
release and the accompanying tables contain non-GAAP financial
measures, including non-GAAP loss from operations, non-GAAP
operating margin, non-GAAP net loss, non-GAAP net loss per share,
and free cash flow. The non-GAAP financial information is presented
for supplemental informational purposes only, and is not intended
to be considered in isolation or as a substitute for, or superior
to, financial information prepared and presented in accordance with
GAAP. The non-GAAP measures presented here may be different from
similarly-titled non-GAAP measures used by other companies.
We use these non-GAAP measures in conjunction with GAAP measures
as part of our overall assessment of our performance, including the
preparation of our annual operating budget and quarterly forecasts,
to evaluate the effectiveness of our business strategies and to
communicate with our board of directors concerning our financial
performance. We believe these non-GAAP measures, when viewed
collectively with the GAAP measures, may be helpful to investors
because they provide consistency and comparability with our past
financial performance and facilitate period-to-period comparisons
of our operating results.
There are material limitations associated with the use of
non-GAAP financial measures since they exclude significant expenses
and income that are required by GAAP to be recorded in our
financial statements. The definitions of our non-GAAP measures may
differ from the definitions used by other companies and therefore
comparability may be limited. In addition, other companies may
utilize metrics that are not similar to ours. We compensate for
these limitations by analyzing current and future results on a GAAP
basis as well as a non-GAAP basis and by providing specific
information regarding the GAAP items excluded from these non-GAAP
financial measures. Please see the reconciliation tables in this
release for the reconciliation of GAAP and non-GAAP results.
We adjust the following items from one or more of our non-GAAP
financial measures:
Stock-based compensation expense. We exclude stock-based
compensation expense, which is a non-cash expense, from certain of
our non-GAAP financial measures because we believe that excluding
this item provides meaningful supplemental information regarding
operational performance. In particular, companies calculate
stock-based compensation expense using a variety of valuation
methodologies and subjective assumptions.
Employer payroll tax expense related to employee stock plans. We
exclude employer payroll tax expense related to employee stock
plans, which is a cash expense, from certain of our non-GAAP
financial measures because we believe that excluding this item
provides meaningful supplemental information regarding operational
performance. In particular, this expense is tied to the exercise or
vesting of underlying equity awards and the price of our common
stock at the time of exercise or vesting, which may vary from
period to period independent of the operating performance of our
business.
Amortization of acquired intangible assets. We exclude
amortization of acquired intangible assets, which is a non-cash
expense, from certain of our non-GAAP financial measures. Our
expenses for amortization of intangible assets are inconsistent in
amount and frequency because they are significantly affected by the
timing, size of acquisitions and the inherent subjective nature of
purchase price allocations. We exclude these amortization expenses
because we do not believe these expenses have a direct correlation
to the operation of our business.
Business combinations and related cost. We exclude transaction,
integration, and retention expenses that are directly related to
business combinations from certain of our non-GAAP financial
measures because we believe that excluding these items provides
meaningful supplemental information regarding operational
performance.
Non-GAAP tax adjustments. We exclude discrete tax expenses
associated with non-recurring intercompany transactions and release
of deferred tax valuation allowance because we believe that
excluding these items facilitate a comparison of the non-GAAP tax
provision in the current and prior periods.
Free cash flow. Our management reviews cash flows generated from
operations after taking into consideration capital expenditures
such as purchase of property and equipment and internal-use
software as these expenditures are considered to be a necessary
component of ongoing operations. We define non-GAAP free cash flow
as net cash provided by (used in) operating activities, reduced by
purchase of property and equipment and capitalization of
internal-use software.
Operating Metrics
Annual recurring revenue (ARR) is calculated as subscription
revenue already booked and in backlog that will be recorded over
the next 12 months, assuming any contract expiring in those 12
months is renewed and continues on its existing terms and at its
prevailing rate of utilization.
Dollar-based Net Expansion Rate is calculated as the ARR at the
end of a period for the base set of customers from which we had ARR
in the year prior to the calculation, divided by the ARR one year
prior to the date of calculation for that same customer base.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211123006102/en/
Investor Contact: Edelita Tichepco
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