Posted on Wednesday, Mar 4th 2020
According to a
Market Research Planning report, the global Enterprise Resource Planning market is expected to grow to $49.5 billion by the year 2024 driven by the increased adoption of mobile and cloud planning solutions and the penetration of these solutions within the SMB segment. Cloud-based planning services provider Anaplan (NYSE:PLAN) recently reported its fourth quarter results that surpassed market expectations. Anaplan’s Financials
Revenues for the fourth quarter grew 42% to $98.2 million, ahead of the Street’s forecast of $97 million. Adjusted loss was $0.07 per share, compared with the Street’s forecast of a loss of $0.11 per share and previous year’s loss of $0.13 per share.
By segment, subscription revenues grew 50% to $89.5 million and professional services revenues fell 9% to $8.7 million. Its dollar-based expansion rate was 122% driven by the continued to demand for its Connected Planning solution. It ended the quarter with over 1400 total customers. It is now catering to over 350 customers with more than $250K in annual recurring revenues.
Despite impressive results, analysts weren’t too pleased with Anaplan’s
slowing billing growth rates. For the quarter, calculated billings grew 25%
over the year to $126 million. The market was looking for billings of $138
million for the quarter.
Anaplan also announced that its Chief Growth Officer Mark Anderson was stepping down. Mark had been on the job for less than a year. While the official announcement states that he was stepping down to spend time with him family and to pursue philanthropic opportunities, analysts suspect that the departure may suggest “
deeper issues” as reflected in the billing growth rates.
Anaplan ended the year with revenues growing 45% to $348 million. Its losses grew from $56.5 million a year ago to $148.4 million. On an adjusted basis, loss per share fell to $0.44 from $0.73 last year.
Anaplan expects to end the current quarter with revenues of $102-$103
million, against the market’s forecast of $103.1 million. Anaplan forecast
revenues of $463-$467 million for the year, which was better than the market’s
forecast of $462.7 million.
Anaplan’s Product Upgrades
Anaplan continued to deliver several product upgrades during the quarter. It recently introduced AI-powered capabilities for Predictive Sales Planning to help organizations design and execute on their sales and revenue strategies. The tool will provide sales leaders with access to deeper insights into the accounts such as company growth trends, business partnerships, hiring trends, and buyer intent. Users will be able to leverage the tool to prioritize accounts that have a higher probability of making the purchase. It will allow sales teams to carve potential sales territories across multiple dimensions such as geography, industry, or product and will help leaders design fair quotas for the year.
Besides helping organizations execute
on their sales strategy, Anaplan is also leveraging AI to improve its forecast
accuracy. Anaplan has integrated Salesforce Einstein Analytics with its Connected
Planning platform so that Opportunity data from Sales Cloud and commitment data
from Anaplan forecasting models can be integrated together with Einstein’s
capabilities to deliver a more accurate predicted win rate.
Anaplan’s Platform Focus
Besides product upgrades, Anaplan continued to grow its platform community. Anaplan is very attentive to its developer community. In a recent talk, its CEO Frank Calderoni talked about building more API connectors for the platform to ensure that it can connect to any data source to deliver more accurate and reliable planning solutions. Its engineering team has defined quarterly targets on the number of applications that it needs to connect to.
Anaplan’s ultimate goal is to becoming a “
complete app store of available connectors”. It believes that by building these connectors, Anaplan will be able to deliver seamless integration with data streams and extend the power of its platform across the enterprise. Additionally, by delivering a rich API and micro services framework within the platform, it will also be able to open up more opportunities for next-gen App Hub.
Anaplan’s open platform currently
has more than 200 pre-built models spanning multiple enterprise use cases. It
clearly wants to keep adding to this library.
Anaplan is currently trading at $45.56 with a market capitalization of $6 billion. It touched a 52-week high of $63.71 earlier this month. It hit a 52-week low of $33.59 in March last year. The stock had listed at $17 in October 2018 when it raised $263.5 million at a valuation of $1.8 billion.
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Splunk on the Right Track with Cloud and PaaS . Veeva Sets an Example, Transitions to a Public Benefit Corporation . BlackLine is Targeting A/R Automation Market . Okta Targets $25B Customer Identity Market with Acquisition . Teradata Trying to Reinvent Itself on the Cloud . Dropbox Acquires, But Competition Remains Stiff . Smartsheet Focuses on Partners, and not on ISVs . MongoDB has Huge Room to Grow in $97B Market . Cloud and Platform Expansion Continues at Nutanix . Rapid7 Targets $1B ARR by 2025 . DocuSign Exploring Unprecedented Digital Signature Offerings . Tenable Continues its Acquisition Spree . SolarWinds Attack Driving Zscaler's Stellar Performance . Zoom Should Report Developer Ecosystem Metrics . DigitalOcean Goes Public with a Strong ISV PaaS Strategy . Dynatrace Competing with Rivals by Simplifying DevOps . Talend Becomes a Private Firm, Once Again . Everbridge Focuses on the Government Sector . Analysis of Fastly’s Signal Sciences Acquisition . Cloudera Focuses on Machine Learning for Verticals . Medallia Acquires to Expand Digital Experience Analytics . PagerDuty Sees Market Expand Beyond ITOps . Bill.com Expanding Payment Offerings for Small Businesses . Alarm.com's Product and Partner Portfolio Helps Address Competition . Sumo Logic Counts on Acquisition and Product Upgrades . Analysis of Crowdstrike’s Humio Acquisition . IBM's Transition to a Hybrid Cloud and AI Company . Analysis of Box's Acquisition of SignRequest . ON24 Should Look at Consolidating MarTech SaaS . Snowflake Exploring AI for Data Warehousing Capabilities . Unity Software Focuses on Digital Marketing with RestAR Acquisition . Tuya Counts on PaaS for Growth Within IoT . ServiceNow Continues to Acquire, Partner, and Integrate . Atlassian Expands Beyond IT Teams to Enterprise-Wide Offerings . Google's Growth Continues Despite Regulatory Concerns . Analysis of Microsoft's Acquisition of Nuance . Amazon's Ad Revenue on the Rise . 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DocuSign Sees Digital Signature Trends Here to Stay . Market Leader Tenable Leverages Acquisitions for Growth . Analysis of Zscaler's Recent Two Acquisitions . Analysis of Rapid7's Velocidex Acquisition . Dropbox Expands in International eSignature Market . MongoDB Rides High on Five Years of Atlas . RingCentral Leverages Partnerships for Growth . BlackLine Remains Focused on SAP . ON24 Expands Marketing Offerings . Analysis of Magnite's Spot X Acquisition . PagerDuty Focuses on Integrations . Analysis of Bill.com's Divvy Acquisition . C3.ai Doubles Down on Partnerships . Analysis of Coupa's Pana Acquisition . BigCommerce Eyes a Bigger Marketshare Through Walmart Tie-up . Analysis of Everbridge's xMatters Acquisition . Adobe's Digital Solutions Drive Stellar Growth . CrowdStrike Leads in Endpoint Security Through Tie-ups . Snowflake Focuses on Expanded Partner Program to Drive Growth . Analysis of Sumo Logic's Sensu Acquisition . 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RingCentral Cashing in on the Hybrid Work Environment . Splunk Tackles Decelerating Growth with Product Upgrades . MongoDB's Atlas Capabilities Expand to the Government Sector . Analysis of Bill.com's Invoice2Go Acquisition . DocuSign Banks on Agreement Cloud . Smartsheet's Expanding Use Cases . Analysis of Salesforce's Servicetrace Acquisition . Zscaler Focuses on Federal Agencies . Coupa Launches PaaS Strategy . Analysis of BlackLine’s Kyriba Partnership . PagerDuty's Expanding Integration Portfolio . Analysis of Tenable's Accurics Acquisition . Upstart’s Improving AI Algorithm in FinTech Consumer Lending . Analysis of C3.ai's Growing Partnerships . Analysis of Veeva's Learnaboutgmp Acquisition . Analysis of Adobe's Frame.io Acquisition . Snowflake Focuses on the Financial Services Sector . CrowdStrike Expands Government Offerings . Zoom Focuses on Expanding Reseller Offerings . Dropbox Focuses on Content Creators with New Product . Analysis of Okta's atSpoke Acquisition . Sumo Logic Leverages Red Hat Marketplace . Analysis of Dynatrace's SpectX Acquisition . Tuya Prepares to Address the Chip Shortage . Analysis of Appian's Lana Labs Acquisition . Analysis of Qualtrics's $1.125B Clarabridge Acquisition . Fastly Addresses Latency Issues for Developers . Alarm.com Leverages AI for Growth . Analysis of IBM's Rego Acquisition . Analysis of Unity's Parsec Acquisition . UiPath Envisions Advanced ML Capabilities . Microsoft Teams Lags Far Behind Zoom . Analysis of ServiceNow's Gekkobrain Acquisition . Google Attempts to Gain Ground in Cloud and AI . Atlassian Expands Beyond IT Offerings . Amazon Addresses Margin Pressures Through Product Upgrades . Twilio Leverages Segment Platform for Product Expansion . Shopify Expands PaaS Integrations . Analysis of Zendesk's $4.1B Momentive Acquisition . HubSpot Becomes a Stickier Platform . Analysis of Alteryx's Acquisitions . Wix Focuses on Fitness Services Providers . Pure Storage Partners with Microsoft Azure to Address Chip Shortage Concerns . Analysis of Salesforce's LevelJump Acquisition . Qualys Expands Solutions to Address Ransomware . Veeva Eyes Data Cloud . Splunk Expands Partner Capabilities . Coupa Continues to Build on its PaaS . MongoDB Focuses on Winning Government Contracts . DocuSign Targets $50B Market Opportunity in Agreement Cloud . Smartsheet Focuses on PaaS Growth . C3.ai Expands Enterprise and Public Sector Presence