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Anaplan (PLAN) - Get Free Report shares sank 6% on Tuesday even as the software company reported improved second-quarter results and raised its full-year guidance.

Second-quarter revenue was $84.5 million, an increase of 46% year over year, the company said. Subscription revenue increased 48% to $73.6 million for the quarter ended in July.

The company's operating loss was $41.2 million, or 48.7% of total revenue, compared with $19.9 million, or 34.5% of total revenue, a year ago.

Anaplan's loss per share was 12 cents in the second quarter of fiscal 2020, which was narrower than expectations of a loss of 16 cents. A year earlier, Anaplan posted a loss of 19 cents a share.

Third-quarter revenue is expected to come in between $85.5 and $86.5 million, the company said. Analysts were forecasting third-quarter revenue of about $86.1-million.

The San Francisco-based company also updated its iscal 2020 guidance, saying revenue is expected to come in between $339 and $343 million vs. its forecast in May of $326 and $331 million. Analysts had been expecting revenue of about $340.9 million for the year.

The company also said its operating margin is now expected to be between negative 19.5% and 20.5% compared to expectations of between negative 22.5% and 23.5%.

Canaccord Genuity analyst Richard Davis said in a note Tuesday that investors should "ignore the fade and buy the stock because Anaplan has plenty of gas left in the tank."

He has a buy on the stock and raised his target to $65 from $50.

"Our preview on Anaplan was spot on: a beat, a raise, and a stock that faded a bit because it came into the print quite hot (and that usually means someone let their imagination run wild)," he wrote.

Anaplan is one of Canaccord's "top picks among super-speeders because the firm is likely to grow rapidly, but also beat forecasts," Davis wrote. "Beats and raises are among the best indicators of intermediate-term stock price outperformance."

The stock was trading at $55.78, below its 52-week high of $60.36 reached last month. The stock has gained 111% so far this year.

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