Shares of Anaplan (NYSE: PLAN) dropped by 23% on Wednesday morning after the company reported its fiscal third-quarter results. The cloud platform for worker connectivity and performance was down around 17.5% as of 12:16 .m. ET.
This cloud-based business performance software platform provider Anaplan saw its stock plummet more than 20% in premarket trading. The company’s third-quarter financial results showed further losses amid steady growth in sales.
Anaplan’s numbers told a similar story to what we’ve seen from many companies in the cloud computing space. Total revenue jumped 35% year over year to $155.3 million, with subscription-based revenue climbing at a slightly slower 33% annual pace. An adjusted loss of $0.05 per share was flat compared to year-ago levels.
Yet even though Anaplan boosted its revenue guidance for the full year, investors seemed more worried about disappearing sequential growth. The company now believes it will see sales come in between $583.5 million and $584.5 million, up from its previous range of $571.5 million to $573.5 million. However, total revenue projections for the fourth quarter of $154 million to $155 million would actually be down slightly from third-quarter levels.
Q3 Fiscal 2022 Financial Results
Total revenue was $155.3 million, an increase of 35.2% year-over-year. Subscription revenue was $139.3 million, an increase of 33.1% year-over-year.
GAAP operating loss was $48.2 million or 31.0% of total revenue, compared to $35.9 million in the third quarter of fiscal 2021 or 31.2% of total revenue. Non-GAAP operating loss was $6.9 million or 4.4% of total revenue, compared to $6.1 million in the third quarter of fiscal 2021 or 5.3% of total revenue.
GAAP loss per share was $0.28, compared to $0.26 in the third quarter of fiscal 2021. Non-GAAP loss per share was $0.05, flat compared to the third quarter of fiscal 2021.
Cash and Cash Equivalents were $312.4 million as of October 31, 2021.
Anaplan Future expectations
Based on the current finances, Anaplan Inc. (PLAN) provided guidance for its fourth quarter of the fiscal year 2022. The company expects revenue for the fourth quarter to be in the range of $154.0 million and $155.0 million. Moreover, the expected non-GAAP operating margin for the fourth quarter is in the range of negative 10.0% and 11.0%.
Further, the company also expects billings between $213 million and $214 million for the fourth quarter of the fiscal year 2022.