Qualtrics Posts Q4 Revenues Beat & Upbeat Guidance; Shares Up 10%

Qualtrics International (NASDAQ: XM) reported stronger-than-expected Q4 revenue, which exceeded estimates; however, earnings fell five cents short of estimates.

Despite the earnings miss, shares of the software technology company gained over 10% during the extended trading session on January 26, after the company delivered FY2022 guidance that exceeded expectations.

Q4 Results

Notably, revenues jumped 48% year-over-year to $316 million, surpassing analysts’ estimates of $297.61 million. The increase in revenues reflects an upsurge in Subscription revenues, which increased 61% to $259 million.

However, Q4 adjusted loss of $0.07 per share fell short of analysts’ expectations of a loss of $0.02 per share. The company reported an adjusted loss of $0.02 per share for the prior-year period.

Upbeat Outlook for FY2022

Based on robust Q4 results, management issued the financial guidance for FY2022.

The company forecast FY2022 adjusted loss in the range of $0.00 to ($0.02) per share, while the consensus estimate is pegged at a loss of $0.01 per share. Revenues are forecast to be in the range of $1.40 billion to $1.41 billion, versus the consensus estimate of $1.36 billion.

For Q1, adjusted loss is likely to range between $0.00 to ($0.02) per share, while the consensus estimate is pegged at a loss of $0.01 per share. Revenues are projected to be in the range of $324 million to $326 million, against the consensus estimate of $314.68 million.

CEO Comments

Qualtrics CEO, Zig Serafin, commented, “Q4 was an outstanding quarter, capping off a record year of growth for Qualtrics. Not only did we cross the $1 billion revenue milestone, but we’re accelerating past it, as experience management becomes even more critical to business success.”

Wall Street’s Take

Following the Q4 results, one of the Top Analysts at Oppenheimer, Brian Schwartz reiterated a Buy rating on Qualtrics International with the price target of $45 (85.57% upside potential).

Consensus among analysts is a Strong Buy based on 5 Buys and 1 Holds. At the time of writing, the average Qualtrics International stock price projection was $43.67, which implies 80.1% upside potential to current levels.

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