ServiceSource Q2 earnings land just above Wall Street projections

Summary:Despite a net loss for the second quarter, ServiceSource still turned it out for non-GAAP earnings and revenue.

ServiceSource's second quarter might look like a mixed bag, but the company still beat Wall Street expectations nonetheless.

The service management solutions provider actually reported a net loss of $36.8 million, or 50 cents a share (statement).

But on a brighter note, non-GAAP earnings were 2 cents a share on a revenue of $59.7 million, an increase of 23 percent compared with $48.5 million in Q2 2011.

Wall Street was expecting ServiceSource to report earnings of 1 cent a share on revenue of $59.2 million.

CEO and chairman Mike Smerklo commented in prepared remarks:

Our team executed well during the second quarter, which contributed to revenue and profitability that exceeded the high-end of our guidance. We have made tremendous progress advancing our Avalon platform, which is our next-generation, cloud application suite for managing recurring revenue. We recently launched our first beta customer and are on track for a fall delivery of Avalon, which we believe will have significant impact on our industry and company.

For the outlook, ServiceSource is predicting a revenue between $57.5 and $59.5 million at the end of Q3 2012 non-GAAP net loss per share to be between breakeven to a loss of $0.02 per share.

For the year, ServiceSource projects a revenue of $246 to $249 million with earnings between 5 and 7 cents per share. Wall Street is expecting full year revenue of at least $248.0 million with earnings of 7 cents per share.

Q2 Highlights:

  • Added a new SaaS logo to its customer base, with the recent signing of Jive Software
  • Signed several new expansions including Hitachi Data Systems, Mitel, and Red Hat, among others
  • Launched its first Avalon beta customer, which is on track for General Availability in the second half of 2012

Topics: Tech Industry, Cloud

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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