SAP subsidiary Qualtrics’s stock sags on first public quarterly report

Qualtrics’s quarterly revenue was as expected, while profit came in a little better than Wall Street expected.

Qualtrics, the "experience management" software maker owned by SAP AG, which went public in January, this afternoon reported Q4 revenue in line with analysts' expectations, and profit that beat by two cents, and forecast this quarter's revenue and profit higher as well.

The report sent Qualtrics shares down about five percent in late trading, although the stock recouped losses and was later down only about a percent.

CEO Zig Serafin remarked that "With virtually everything moving to digital, Qualtrics' mission to help companies design and continuously improve the experiences they deliver has never been more relevant, and that is reflected in our outstanding Q4 and 2020 results."

Added Serafin, "We're innovating faster than ever before to make our more than 13,500 customers successful, and we're well positioned for continued strong growth in 2021."

Revenue in the three months ended in December rose 24%, year over year, to $213.6 million, yielding a net loss of 2 cents a share.

Analysts had been modeling $213.5 million and 4 cents per share.

Qualtrics offered additional financial metrics. The company noted its subscription revenue in the quarter had risen by 33% to $160.4 million. 

In addition, Qualtrics said its "remaining performance obligation," a measure of software sales not yet billed, was up 78%, with the amount of RPO for the coming twelve-month period rising 49% to $645 million. 

For the current quarter, the company sees revenue of $226 million to $228 million, and a net loss in a range of 2 cents to 4 cents. That compares to consensus for $220 million and a 4-cent loss per share.

For the full year, the company sees revenue in a range of $950 million to $954 million, and a net loss of 16 cents to 18 cents a share. That compares to consensus of $932 million and a 19-cent loss per share.

Qualtrics, founded eighteen years ago, went public on Nasdaq January 28th and saw its shares immediately soar in value. The company claims that experience management software is a new category of software that it said "enables organizations to succeed in today's experience economy."