Cloud-based planning software provider Anaplan (NYSE:PLAN) recently reported a strong second quarter results that beat analyst estimates. In the current crisis, Anaplan is focusing on building a more robust planning community that will help it grow in the longer run.
Revenues for the quarter grew 26% to $106.5 million, ahead of the Street’s forecast of $103.5 million. Adjusted loss for the quarter improved to $0.04 per share, compared with the Street’s forecast of a loss of $0.12 per share.
By segment, subscription revenues grew 32% to $93.8 million and professional services revenues declined 14.1% to $9.4 million. Its dollar-based expansion rate was 116%.
For the third quarter, Anaplan expects revenues between $109-$110 million, significantly higher than the Street’s estimates of $108.4 million. For fiscal 2021, Anaplan expects revenues between $437-$439 million, higher than the Street’s estimates of $433.5 million.
Anaplan’s Growth Focus
Given the current conditions, Anaplan has been focusing on driving tighter collaboration in its joint account planning processes by leveraging its partners to connect Anaplan into their digital transformation efforts that they’re driving with their largest customers. Its partners continue to invest in their Anaplan practice. During the quarter, the partners added over 600 new certified model builders of which 60% were with its GSI partners.
Anaplan believes that increasing the number of certified Anaplan professionals will also benefit them in the longer term to acheive the vision of making Anaplan the default planning standard for both companies and professionals. During the quarter, it saw an increase in certification across all levels of its model builder certification. Certified model builders were up 63% and the level 3 model builders were up 185% over the previous quarter.
Anaplan’s PaaS Strategy: Platform or APIs
Anaplan opened its data platform a few years ago, allowing organizations and developers to build apps to solve planning problems. The Anaplan platform makes it easier for these apps to be extended to multiple business cases and scenarios and to meet different levels of business sophistication.
Anaplan’s PaaS Strategy: Developer Community
Anaplan does not disclose the details about its developer community. Over the past few years, it has been partnering with several small and big consultants to build apps that make it easier to perform a wide range of activities including financial forecasting, project management, and merchandise planning. The platform offers 100s of Anaplan, Partner, and Community created Apps in services ranging from finance, supply chain planning, sales, workforce management, marketing, IT, and training.
Anaplan’s PaaS Strategy: Marketplace and Metrics
Developers can build both accelerators and apps on the platform. Accelerators are basic applications that can help organizations jump-start the process of building custom planning models. Accelerator Apps contain modules, lists, and dashboards that are building blocks for an Anaplan planning model. Besides Accelerators, organizations also have access to Packaged Apps that are an extension of Accelerators and include additional features like pre-built roles, actions, connectors, and configuration screens.
Apps built by Anaplan are free to use for users of the Anaplan Platform License. However, those built by developers and partners need to be licensed through these partners. Anaplan does not share revenue and usage statistics for the apps licensed through its App Hub.
Its stock is currently trading at $58.32 with a market capitalization of $7.8 billion. It touched a 52-week high of $63.71 in August this year. The stock had fallen to a 52-week low of $26.04 in March.
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