K. Liu's Week in Review
The one thing we can count on each earnings season is a dramatic reaction to Stamps.com’s (STMP) results and outlook. In a seeming repeat of last quarter, the company posted another significant beat across the board highlighted by continued strength in new customer acquisition. However, management again indicated that while growth in new customers and shipping volumes remains elevated at present, the pandemic-related boost continues to moderate and makes for a wide range of possibilities going forward. As such, no guidance for the year was put forth as management deemed any range it would be comfortable providing would not be useful to investors. Given the consternation with management’s approach to Q4 guidance, we believe the disclosure of strong growth trends through January, a reminder that comparisons become more challenging in Q2 and the lack of specific targets, which likely would have been set with an exceedingly high degree of conservatism, demonstrated tact and consideration of prior investor criticisms. Apparently, the market disagreed with our take and sent shares plummeting. Our thoughts on the quarter and outlook are recapped in our report, “Strong Finish to a Strong Year,” but the punch line here is that anyone convinced that e-commerce will only rise from last year’s levels should absolutely see Stamps.com as a compelling buy while those that have reservations in calling for further growth should view management’s approach to guidance as perfectly reasonable. In any event, we think focusing so much on the outlook for FY ’21 is missing the forest for the trees as Stamps.com has already established a dominant position in a market levered to e-commerce and still has a long runway for growth both domestically and abroad. For what it’s worth, Shopify (SHOP) also avoided issuing specific targets for FY ‘21 although management expressed confidence in growth across their business, albeit at rates lower than last year.
As usual, we have included a summary of earnings results from a host of companies below. Most relevant to our current coverage universe, however, was RADCOM’s (RDCM) positive results and outlook. Consistent with commentary from NetScout Systems (NTCT) earlier in the reporting season, management indicated that opportunities associated with 5G are becoming more prevalent in the pipeline. The FCC’s completion of its C-band spectrum auction has been cited by both companies as a critical element in accelerating 5G deployments in the U.S., and RADCOM highlighted an increasing number of commercial agreements secured by Nokia and Ericsson as a sign that operators are beginning their selection of 5G vendors in Europe. Interestingly, the emergence of partnerships between public cloud providers and mobile operators to provide edge computing has also yielded multiple sales opportunities. Outside of our universe, both Brightcove (BCOV) and Cornerstone OnDemand (CSOD) reported results that were well received and reflected inflection points within their respective businesses. Brightcove had already been making strides in its turnaround but growth accelerated as the COVID-19 pandemic jumpstarted demand for video and virtual events. While the shares have responded in kind to the progress, the company’s valuation has yet to reach levels ascribed to healthy SaaS companies let alone those that have seen a step function change in demand due to the pandemic. Cornerstone OnDemand has also been a turnaround story of sorts with new management undertaking the integration of two leaders in the human capital management software market. Following improved renewal rates and increasing adoption of content offerings by customers in Q4, management expressed confidence that the synergies anticipated in combining Cornerstone and Saba are beginning to materialize.
On the M&A front, much of the activity was confined to the security space. CrowdStrike (CRWD) struck a deal to acquire Humio for $400 million. Humio’s high-performance data ingestion engine is expected to expand CrowdStrike’s eXtended Detection and Response (XDR) capabilities by allowing for the ingestion and correlation of both structured and unstructured data. SailPoint (SAIL) agreed to buy Intello, which enables IT teams to discover, manage and secure SaaS applications, including those that have been accessed without IT’s knowledge. Palo Alto Networks (PANW) acquired Bridgecrew for $156 million in cash. The combination of Bridgecrew’s infrastructure as code platform with Palo Alto’s Prisma Cloud will provide developers and DevOps teams with the means to enforce infrastructure security policies throughout the entire application development lifecycle.
Speaking of Prisma Cloud, the group’s former leader Dean Darwin, who was appointed as Chief Revenue Officer at Alteryx (AYX) earlier this year, resigned from his new post after Alteryx was made aware of a tweet in which he said “’[w]hen is the US going to wake up and kick every Chinese researcher here on a visa out of the US and close this as an access to them.” His responsibilities have been assumed by others in the organization. Fastly (FSLY) appointed Brett Shirk as its new Chief Revenue Officer. He joins the company from Rubrik, where he served in the same capacity. There were also several CFO appointments, including the promotion of A10 Networks’ (ATEN) Interim CFO Brian Becker to a permanent role; VIAVI’s (VIAV) appointment of Henk Derksen as EVP and CFO; and Jill Klindt’s promotion from Senior Vice President, Treasurer and Chief Accounting Officer to CFO of Workiva (WK).
Mergers and Acquisitions
CrowdStrike (CRWD) has agreed to acquire Humio, which provides a log management platform featuring a high-performance data ingestion engine, for approximately $400 million.
The acquisition is expected to expand CrowdStrike’s eXtended Detection and Response (XDR) capabilities by making it possible to ingest and correlate data from any source to provide actionable insights and protect against threats.
Palo Alto Networks Announces Intent to Acquire Bridgecrew
Palo Alto Networks (PANW) has agreed to acquire Bridgecrew, which offers a security platform to ensure infrastructure configuration occurs during development, for $156 million in cash.
The acquisition positions Palo Alto’s Prisma Cloud as the first cloud security platform to provide developers and DevOps teams with the means to enforce infrastructure security standards throughout the full application lifecycle.
The acquisition is not expected to have any impact on the company’s financials.
SailPoint has agreed to acquire Intello, which offers a SaaS operations platform enabling customers to discover, manage and secure SaaS applications.
Intello enables IT teams to ensure every SaaS app is protected by providing visibility into the SaaS apps in use across an organization, including those that may be accessed outside of the IT team’s purview.
Earnings Releases
Appian Announces Fourth Quarter and Full Year 2020 Financial Results
Appian (APPN) reported Q4 ’20 results above expectations and provided mixed guidance for FY ’21.
Revenue of $81.6 million (+19.0% Y/Y) was above guidance for $73.0-$74.0 million and consensus of $74.0 million. Adjusted EBITDA was $(3.7) million, exceeding guidance for $(11.0)-$(10.0) million and consensus of $(10.3) million. Non-GAAP EPS of $(0.03) beat guidance for $(0.18)-$(0.16) and the Street’s $(0.17).
Key metrics: gross renewal rate of 99%; cloud subscription revenue retention rate was 119%.
The profile of low-code platforms has risen substantially over the past year, and Appian is a preferred choice due to the speed of its platform, complete automation capabilities and its enterprise readiness.
EMEA performed particularly well with new logo contribution doubling in Q4.
Professional services will continue to face headwinds from COVID and growth of the partner ecosystem this year, while investments in sales and marketing and R&D are expected to increase throughout 2021.
Q1 guidance for revenue of $81.7-$82.7 million was above consensus of $80.6 million, while guidance for adjusted EBITDA of $(9.0)-$(8.0) million and non-GAAP EPS of $(0.15)-$(0.13) left consensus at the high-end.
Management’s FY ’21 guidance calls for revenue, adjusted EBITDA and non-GAAP EPS of $353.0-$355.0 million, $(38.0)-$(36.0) million and $(0.64)-$(0.60), respectively, versus consensus of $341.5 million, $(26.6) million and $(0.43).
Arista Networks, Inc. Reports Fourth Quarter and Year End 2020 Financial Results
Arista Networks (ANET) reported Q4 ’20 results above expectations and guided Q1 ahead of consensus.
Revenue of $648.5 million (+17.4% Y/Y) was above guidance for $615.0-$635.0 million and consensus of $628.9 million. Non-GAAP operating income was $243.5 million (37.6% margin), above consensus of $236.1 million. Non-GAAP EPS of $2.49 beat the Street’s $2.39.
Momentum in the enterprise vertical and campus resulted in a record number of new logos and million-dollar customers.
Shipments remained somewhat constrained in Q4 due to some second and third wave COVID-related disruptions.
Core cloud and data center products are expected to comprise 60%-65% of the business in the future, network adjacencies are estimated at 10%-15% and subscription-based network software and services the remaining 25%.
Q1 guidance for revenue of $630.0-$650.0 million and a non-GAAP operating margin of 37% (implies non-GAAP operating income of $233.1-$240.5 million) was ahead of Street expectations for revenue of $610.4 million and non-GAAP operating income of $224.8 million.
Management expressed confidence in achieving FY ’21 growth consistent with consensus expectations for 14%-15%.
Brightcove Announces Financial Results for Fourth Quarter and Fiscal Year 2020
Brightcove (BCOV) reported Q4 ’20 results above expectations and guided FY ’21 ahead of consensus.
Revenue was $53.7 million (+12.8% Y/Y), above guidance for $49.5-$50.5 million and consensus of $49.8 million. Adjusted EBITDA was $6.8 million (12.6% margin), exceeding guidance for $4.2-$4.7 million and consensus of $4.4 million. Non-GAAP EPS of $0.14 beat guidance for $0.07-$0.08 and the Street’s $0.06.
Key metrics: 2,279 premium customers (-2.5% Y/Y); average annual subscription revenue per premium customer was $97,200 (+17% Y/Y); recurring dollar retention rate was 91%; 12-month backlog was $114.7 million (+14% Y/Y).
Q4 was Brightcove’s strongest bookings performance ever with notable performances in North America and Japan and balanced contribution between new and existing customers.
Subscription and support revenue included $1.2 million in nonrecurring revenue from a live event and $2.3 million in overages.
Brightcove saw continued success with live virtual events and is now considered an industry leader.
Partner bookings more than doubled from the prior year and comprised 20% of total bookings.
Key initiatives for 2021 include building a best-in-class renewals business, investing in the partner channel and leveraging the company’s data assets with machine learning to deliver greater value to customers.
Q1 guidance for revenue of $53.0-$54.0 million, adjusted EBITDA of $5.4-$6.4 million and non-GAAP EPS of $0.09-$0.11 was ahead of Street expectations for $50.4 million, $5.0 million and $0.08, respectively.
Management’s FY ’21 guidance includes revenue of $211.0-$217.0 million, adjusted EBITDA of $25.5-$30.5 million and non-GAAP EPS of $0.44-$0.56, comparing favorably with consensus of $212.4 million, $16.7 million and $0.38, respectively.
Cloud Growth Drives Pega Through $1 Billion Milestone in 2020
Pegasystems (PEGA) reported Q4 ’20 results short of Street expectations but guided FY ’21 ahead of consensus.
Revenue of $298.6 million (+8.0% Y/Y) was below consensus of $313.0 million. Non-GAAP operating income was $20.9 million (7.0% margin), below consensus of $24.4 million. Non-GAAP EPS of $0.18 missed the Street’s $0.22.
Key metrics: total ACV of $825 million (+19% Y/Y), including Pega Cloud ACV of $267 million (+58% Y/Y); backlog of $1.072 billion (+28% Y/Y).
New business continues to be strongest in areas such as financial services, government, telecom, healthcare and insurance., which were less affected by the pandemic and reflect industries where Pega has strong critical mass.
The migration of Pega Cloud clients onto the company’s next-generation cloud platform is complete, setting the stage for long-term margin improvements.
Management’s FY ’21 guidance for revenue of $1.250 billion and non-GAAP EPS of $0.25 was ahead of Street expectations for revenue of $1.209 billion and non-GAAP EPS of $0.16.
Cornerstone OnDemand Announces Fourth Quarter and Full Year 2020 Financial Results
Cornerstone OnDemand (CSOD) reported Q4 ’20 results above expectations and guided FY ’21 ahead of consensus.
Revenue was $206.9 million (+38.3% Y/Y), above guidance for $194.0-$197.0 million and consensus of $196.1 million. Non-GAAP operating income was $52.1 million (25.2% margin), exceeding guidance for $35.0-$38.0 million and consensus of $36.5 million. Non-GAAP EPS of $0.64 beat the Street’s $0.27.
Key metrics: ARR of $840 million (+46% Y/Y), including core product ARR of $751 million (+6% Y/Y); 6,157 customers (+76% Y/Y); 95.1% net annual dollar retention rate.
Management highlighted strong execution and momentum in Q4, which coincided with improved expansion in the customer base and competitive wins for new opportunities.
Upside in the quarter was driven in part by favorable linearity as well as some catch-up revenue from a global e-commerce customer whose user count rose significantly due to the pandemic and exceeded contractual thresholds.
Renewal rates stepped up notably as Cornerstone prioritized customer retention efforts, and content sales reached record levels as the company’s integration of curated content paid dividends.
Cornerstone remains committed to and accelerated its paydown of debt, reducing its Term Loan B debt by $100 million.
Q1 guidance for revenue of $203.0-$205.0 million and non-GAAP operating income of $44.0-$46.0 million was above Street expectations for revenue of $201.4 million and non-GAAP operating income of $42.0 million.
Management’s FY ’21 guidance includes revenue of $847.0-$857.0 million and non-GAAP operating income of $205.0-$212.0 million, exceeding consensus of $828.3 million in revenue and $178.6 million in non-GAAP operating income.
Dropbox Announces Fourth Quarter and Fiscal 2020 Results
Dropbox (DBX) reported Q4 ’20 results above expectations and provided solid guidance for FY ‘21.
Revenue of $504.1 million (+13.0% Y/Y) was above guidance for $497.0-$499.0 million and consensus of $498.1 million. Non-GAAP operating income was $127.6 million (25.3% margin), exceeding guidance for a 22.0%-22.5% margin and consensus of $109.3 million. Non-GAAP EPS of $0.28 beat the Street’s $0.24.
Key metrics: total ARR of $2.022 billion (+11% Y/Y); added 230,000 new paying users for a total of 15.48 million (+8% Y/Y); average revenue per paying user was $130.17 (+4% Y/Y).
The new Family plan SKU was broadly rolled out in October and user adoption has been encouraging.
Deeper integration with HelloSign and the launch of HelloSign in 21 additional languages drove strong growth in ARR, end user paid seats and end user signature requests.
Key priorities for this year include evolving the core product to become the organizational layer across all of a user’s content, investing in and expanding the new product pipeline, and remaining focused on operational excellence.
Q1 guidance for revenue of $504.0-$506.0 million and a non-GAAP operating margin of 27.5%-28.0% (implies non-GAAP operating income of $138.6-$141.7 million) was ahead of Street expectations for revenue of $503.7 million and non-GAAP operating income of $105.5 million.
Management’s FY ’21 guidance for revenue of $2.095-$2.115 billion was in line with consensus of $2.109 billion, while guidance for a non-GAAP operating margin of 27.0%-28.0% (implies non-GAAP operating income of $565.7-$592.2 million) was above Street expectations for non-GAAP operating income of $484.7 million.
Everbridge Announces Strong Fourth Quarter and Full Year 2020 Financial Results
Everbridge (EVBG) reported Q4 ’20 results above expectations and provided a mixed outlook for FY ’21.
Revenue was $75.6 million (+32.4% Y/Y), above guidance for $72.3-$72.7 million and consensus of $72.5 million. Adjusted EBITDA was $4.1 million (5.4% margin), ahead of guidance for $3.0-$3.4 million and consensus of $3.3 million. Non-GAAP EPS of $0.03 was at the high-end of guidance and beat consensus by a penny.
Key metrics: added 146 net new enterprise customers for a total of 5,613 global enterprise customers (+12% Y/Y); closed 66 deals in excess of $100,000; TTM average selling price was $77,000; net retention rate above 110%.
In Q4, Everbridge set records for number of Critical Event Monitoring (CEM) wins, number of six-figure deals, quarterly average selling price, international revenue and sales mix of new products.
The company also saw success with its population warning solution, securing major wins in Europe and Asia in Q4.
Q1 guidance for revenue of $75.3-$75.7 million, adjusted EBITDA of $(0.6)-$(0.2) million and non-GAAP EPS of $(0.12)-$(0.10) was mixed relative to Street expectations for $74.8 million, $1.6 million and $(0.06), respectively.
Management’s FY ’21 outlook includes revenue of $342.1-$344.1 million, adjusted EBITDA of $7.5-$8.5 million and non-GAAP EPS of $(0.25)-$(0.19), which was also mixed versus consensus of $336.5 million, $13.5 million and $0.05.
Fastly Announces Fourth Quarter and Full Year 2020 Financial Results
Fastly (FSLY) reported Q4 ’20 results ahead of expectations and provided a mixed outlook for FY ’21.
Revenue of $82.6 million (+40.2% Y/Y) was within guidance for $80.0-$84.0 million and slightly ahead of consensus of $82.0 million. Non-GAAP operating income was $(9.0) million, above guidance for $(15.2)-$(11.2) million and consensus of $(11.6) million. Non-GAAP EPS of $(0.09) was within guidance for $(0.12)-$(0.08) and beat consensus by a penny.
Key metrics: dollar-based net expansion rate of 143%; net retention rate of 115%; 2,084 total customers, including 324 enterprise customers; average enterprise customer spend of $782,000.
Cross sell and upsell of Fastly’s security portfolio into both its own customer base and Signal Sciences’ exceeded internal expectations driven by strong demand in the market for purchasing application protection and delivery from a single vendor.
Fastly’s focus for 2021 is the addition of capabilities and use cases to Compute@Edge and augmenting its security solution with the technology acquired from Signal Sciences.
Q1 guidance for revenue of $83.0-$86.0 million was in line with consensus of $84.6 million, while guidance for non-GAAP operating income and EPS of $(14.0)-$(10.0) million and $(0.13)-$(0.09), respectively, left consensus at the high-end.
Management’s FY ’21 guidance for revenue, non-GAAP operating income and non-GAAP EPS of $375.0-$385.0 million, $(50.0)-$(40.0) million and $(0.44)-$(0.35) was mixed relative to consensus of $379.5 million, $(23.2) million and $(0.21).
NICE Reports Accelerated Cloud Revenue Growth for The Fourth Quarter and Full Year 2020
NICE (NICE) reported Q4 ’20 results above expectations and guided FY ’21 in line with consensus.
Non-GAAP revenues of $438.4 million (+1.7% Y/Y) were above guidance for $426.3-$436.3 million and consensus of $433.3 million. Non-GAAP operating income of $131.7 million (30.1% margin) was ahead of consensus of $129.9 million. Non-GAAP EPS of $1.61 beat guidance for $1.50-$1.60 and the Street’s $1.55.
Approximately 50% of revenue now comes from the cloud with cloud annual recurring revenue now in excess of $900 million.
Strength in the cloud business continues to come from the signing of significant CXone deals with large enterprises as well as traction with the new Xceed platform.
Q1 guidance for non-GAAP revenues of $445.0-$455.0 million was above consensus of $435.6 million, while guidance for non-GAAP EPS of $1.42-$1.52 was in line with the Street’s $1.48.
Management’s FY ’21 guidance includes non-GAAP revenues of $1.790-$1.810 billion and non-GAAP EPS of $6.12-$6.32, in line with Street expectations for $1.808 billion and $6.28, respectively.
RADCOM Reports Fourth Quarter and Full Year 2020 Results
RADCOM (RDCM) reported Q4 ’20 results above expectations and guided FY ’21 revenue ahead of consensus.
Revenues of $10.2 million (+13.5% Y/Y) were above consensus of $9.6 million. Non-GAAP operating income was $(0.2) million, above consensus of $(0.4) million. Non-GAAP EPS of $0.01 beat the Street’s $(0.04).
RADCOM is seeing more and more operators include 5G in their requirements as well as increased investments in 5G from handset manufacturers, network equipment providers and operators.
Management cited the FCC’s completion of its C-band spectrum auction as a turning point for 5G in the U.S. as the spectrum is an essential part of the 5G rollout that was not available previously and operators have now committed substantial capital.
In Europe, operators are beginning their selection process for 5G vendors, and network equipment providers Nokia and Ericsson recently announced the closing of 195 and 127 commercial 5G agreements, respectively.
Public cloud providers also see potential in the telecom industry, and RADCOM is engaged in multiple opportunities at various stages of the sales cycle.
Management’s FY ’21 guidance for revenue of $39.0-$41.0 million was ahead of Street expectations for $38.8 million.
RingCentral Announces Fourth Quarter 2020 Results
RingCentral (RNG) reported Q4 ’20 results above expectations and guided FY ’21 ahead of consensus.
Revenue of $334.5 million (+32.3% Y/Y) was above guidance for $315.0-$318.0 million and consensus of $317.4 million. Non-GAAP operating income was $33.8 million (10.1% margin), consistent with guidance for a 10.0%-10.1% margin and above consensus of $32.0 million. Non-GAAP EPS of $0.29 beat guidance for $0.26-$0.27 and the Street’s $0.27.
Key metrics: annualized exit monthly recurring subscriptions (ARR) of $1.3 billion (+35% Y/Y).
Q4 was highlighted by an acceleration in RingCentral Office ARR, a record number of $1 million TCV wins and strong contributions from key partners, including Avaya, AT&T and Atos.
Cloud adoption trends remain strong with many customers choosing integrated UCaaS and CCaaS from a single provider.
Heading into 2021, RingCentral boasts a healthy pipeline across all segments and expects strong incremental contributions from the channel as more partners come online throughout the year.
Q1 guidance for revenue of $337.0-$340.0 million, a non-GAAP operating margin of 8.6%-8.8% (implies non-GAAP operating income of $29.0-$29.9 million) and non-GAAP EPS of $0.24-$0.25 was ahead of Street expectations for $329.7 million, $28.1 million and $0.23, respectively.
Management’s FY ‘21 guidance for revenue of $1.475-$1.490 billion, a non-GAAP operating margin of 10.0%-10.1% (implies non-GAAP operating income of $147.5-$150.5 million) and non-GAAP EPS of $1.20-$1.24 was ahead of consensus of $1.438 billion, $144.7 million and $1.17, respectively.
Shopify Announces Fourth-Quarter and Full-Year 2020 Financial Results
Shopify (SHOP) reported Q4 ’20 results above expectations.
Revenue was $977.7 million (+93.6% Y/Y), exceeding consensus of $914.6 million. Non-GAAP operating income was $200.0 million (20.5% margin), also exceeding consensus of $143.6 million. Non-GAAP EPS of $1.58 beat the Street’s $1.29.
Key metrics: monthly recurring revenue (MRR) was $82.6 million (+53% Y/Y); Gross Merchandise Volume (GMV) was $41.1 billion (+99% Y/Y); Gross Payments Volume was $19.1 billion (46% of GMV); Shopify Plus was 25% of MRR; 52% of eligible merchants utilized Shopify Shipping versus 45% last year.
Q4 MRR benefited from incremental revenue from the new Retail POS Pro offering as subscription pricing went into effect in November 2020.
Shopify now has over 1.7 million merchants on its platform and over 10,000 on Shopify Plus.
Shop Pay was made available off the Shopify platform for the first time to Shopify merchants on Instagram and will be rolled out to Facebook in the coming weeks.
Key investment areas in 2021 include the Shopify Fulfillment Network, the Shop App and international expansion.
For FY ’21, management anticipates a lower rate of merchant additions than seen in FY ’20 but at a level above any year prior to that, similar growth rates in both subscription and merchant solutions revenues, rapid revenue growth albeit at a pace slower than FY ’20, and reinvestment of incremental gross profits in research and development and sales and marketing.
Twilio Announces Fourth Quarter and Full Year 2020 Results
Twilio (TWLO) reported Q4 ’20 results above expectations and provided mixed guidance for Q1.
Revenue of $548.1 million (+65.5% Y/Y) was above guidance for $450.0-$455.0 million and consensus of $454.8 million. Non-GAAP operating income was $12.8 million (2.3% margin), exceeding guidance for $(15.0)-$(10.0) million and consensus of $(12.3) million. Non-GAAP EPS of $0.04 beat guidance for $(0.11)-$(0.08) and the Street’s $(0.08).
Key metrics: over 221,000 active customer accounts (+24% Y/Y); dollar-based net expansion rate of 139%.
Political traffic had a positive influence on the quarter’s results, and the acquisition of Segment contributed $23 million.
Twilio hosted 285 virtual events and connected with nearly 40,000 customers and developers throughout the past year.
Internally, the company is focused on scaling its systems and processes, which entails investments in ERP, business intelligence, quote-to-cash and other core processes.
Q1 guidance for revenue of $526.0-$536.0 million, non-GAAP operating income of $(20.0)-$(15.0) million and non-GAAP EPS of $(0.12)-$(0.09) was mixed versus consensus of $492.1 million, $(7.4) million and $(0.02), respectively.
Wix Reports Fourth Quarter and Full Year 2020 Results
Wix (WIX) reported Q4 ’20 results above expectations and guided FY ’21 ahead of consensus.
Revenue was $282.5 million (+38.1% Y/Y), above consensus of $270.2 million. Non-GAAP operating income of $(7.6) million was below consensus of $(6.6) million. Non-GAAP EPS of $(0.03) beat the Street’s $(0.11).
Key metrics: Collections were $306.4 million (+35% Y/Y), above guidance for $295.0-$305.0 million; Creative Subscriptions ARR was $878.0 million (+24% Y/Y); Business Solutions ARR was $138.3 million (+46% Y/Y); added 185,000 net premium subscriptions (+107% Y/Y) for a total of 5.5 million (+22% Y/Y); added 7.4 million registered users (+27% Y/Y) for a total of 196.7 million (+19% Y/Y).
An influx of businesses to Wix has driven higher monetization and Wix Payments revenue, which is expected to increase meaningfully in FY ‘21.
Online commerce more than doubled on Wix and partner revenue growth also doubled from the prior year.
Management believes that half of all new websites on the internet in five years may be built on Wix.
Q1 guidance for revenue of $291.0-$296.0 million was ahead of Street expectations for $287.5 million.
Management’s FY ’21 guidance includes revenue of $1.272-$1.286 billion, above consensus of $1.261 billion; collections of $1.435-$1.455 billion (+30%-32% Y/Y); and free cash flow (excluding capex for its headquarters) of $90.0-$100.0 million.
Workiva Announces Fourth Quarter and Full Year 2020 Financial Results
Workiva (WK) reported Q4 ’20 results above expectations and provided mixed guidance for FY ’21.
Revenue of $93.8 million (+16.9% Y/Y) was above guidance for $90.2-$90.7 million and consensus of $90.6 million. Non-GAAP operating income was $5.2 million (5.5% margin), exceeding guidance for $0.5-$1.0 million and consensus of $0.9 million. Non-GAAP EPS of $0.09 beat guidance for $0.00-$0.01 and the Street’s $0.00.
Key metrics: 3,723 customers (+6% Y/Y); revenue retention rate excluding add-on revenue of 95.0% and including add-on revenue of 109.5%; 847 customers with ACV over $150,000 (+47% Y/Y).
Workiva continued to benefit from macro business trends, including significant increases in cloud platform deployments, digital transformations and remote workplaces, as well as growing demand for RegTech and XBRL.
All customers are now on the company’s next-generation platform, which is more open, scalable, intelligent and intuitive.
Key growth priorities include the launch of fit-for-purpose solutions, global expansion and partner ecosystem expansion.
Q1 guidance for revenue of $100.0-$101.0 million, non-GAAP operating income of $4.0-$5.0 million and non-GAAP EPS of $0.06-$0.08 exceeded consensus of $97.9 million, $(0.1) million and $(0.01), respectively.
Management’s FY ’21 guidance includes revenue of $409.0-$411.0 million, non-GAAP operating income of $(12.0)-$(10.0) million and non-GAAP EPS of $(0.30)-$(0.26), which was mixed versus Street expectations for $402.8 million, $(5.7) million and $(0.11), respectively.
Notable News
A10 Networks Appoints Brian Becker as Chief Financial Officer
In an 8-K filing, A10 Networks (ATEN) announced the appointment of Brian Becker as Chief Financial Officer.
Mr. Becker had been named Interim Chief Financial Officer in September 2020 and joined the company in 2018 as Vice President and Corporate Controller.
Alteryx Discloses Resignation of Chief Revenue Officer
In an 8-K filing, Alteryx (AYX) disclosed that Dean Darwin, who joined as Chief Revenue Officer in January 2021, resigned after the company became aware of a social media post that was inconsistent with its values.
Mr. Darwin had tweeted “When is the US going to wake up and kick every Chinese researcher here on a visa out of the US and close this as an access to them.”
Channel Futures chronicled the sequence of events here.
Fastly Names Brett Shirk as Chief Revenue Officer
Fastly (FSLY) has appointed Brett Shirk as Chief Revenue Officer, a role in which he will focus on developing and driving the company’s global sales and client services strategy.
Mr. Shirk joins the company from Rubrik, where he also served as Chief Revenue Officer.
MicroStrategy Announces Pricing of Offering of Convertible Senior Notes
MicroStrategy (MSTR) priced an offering of $900 million aggregate principal amount of 0% convertible senior notes due 2027 with an initial conversion price of $1,432.46 per share, a 38.5% premium to the close price prior to disclosure of the offering.
The offering was upsized from initial plans to offer $600 million aggregate principal amount of notes and the initial purchasers have been granted an option to purchase up to an additional $150 million aggregate principal amount of notes.
Net proceeds from the offering will be used to acquire additional bitcoins.
Twilio Inc. Announces Pricing of Upsized $1.54 Billion Public Offering of Class A Common Stock
Twilio priced an underwritten public offering of $1.536 billion of shares of its Class A common stock.
The offering was upsized from initial plans to offer $1.0 billion of shares, and Twilio has granted the underwriters an option to purchase up to an additional $230.4 million of shares.
VIAVI Appoints Henk Derksen as Executive Vice President and Chief Financial Officer
VIAVI Solutions (VIAV) has appointed Henk Derksen as Executive Vice President and Chief Financial Officer.
Mr. Derksen joins the company from Belden, where he has served as Senior Vice President and CFO since 2012.
Workiva Announces CFO Transition
Workiva (WK) announced the retirement of Stuart Miller, Executive Vice President and Chief Financial Officer.
Jill Klindt, who joined Workiva in 2008 and was most recently Senior Vice President, Treasurer and Chief Accounting Officer, has been named Chief Financial Officer.
Disclosure(s):
The analyst, a member of the analyst’s household, and/or an account in which the analyst exercises discretion hold(s) a long position in the common stock of Brightcove (BCOV).
The analyst, a member of the analyst’s household, and/or an account in which the analyst exercises discretion hold(s) a long position in the common stock of NetScout Systems (NTCT).
The analyst, a member of the analyst’s household, and/or an account in which the analyst exercises discretion hold(s) a long position in the common stock of Stamps.com (STMP).