Anaplan Shares Tumble as Billings Growth Eases and Executive Departs

Anaplan shares tumbled after a sharp slowdown in the growth of fourth-quarter billings and the departure of its chief growth officer.
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Anaplan (PLAN) - Get Report shares were tumbling after the business-planning-software company reported a sharp deceleration in fourth-quarter billings growth and said its chief growth officer had left.

The San Francisco company reported a loss of $11 million, or 7 cents a share, compared with a loss of $15.9 million, or 13 cents, in the year-earlier period. Analysts surveyed by FactSet had been looking for a loss of 10 cents a share.

Revenue totaled $98.2 million, up 42% from a year ago and beating Wall Street's call for $97.2 million. The company said fourth-quarter subscription revenue rose 50% to $89.5 million.

Looking ahead, Anaplan forecast first-quarter revenue of $102 million to $103 million, in line with analysts' call for $102.5 million. The company raised its outlook for fiscal 2021 to a range of $463 million to $467 million, from a range of $455 million to $460 million.

Citi analyst Daniel Jester said in a research note that January-quarter “calculated billings” of $126.4 million were up 24.5%, slower than revenue and below both his call of $140 million and consensus at $138 million.

The company also said that Mark Anderson, chief growth officer, was stepping down after less than a year on the job "to focus on my philanthropic endeavors and my family," according to a statement.

Barclays analyst Raimo Lenschow said in a note to clients that "we suspect the departure of the only, recently hired, chief growth officer hints at deeper issues."

Lenschow also said that the “setup for high-growth names like Anaplan looks vulnerable, and the numbers today, unless there is a very good explanation, will likely lead to a
meaningful correction given the healthy valuation level."