Qumu (QUMU) Misses Q1 EPS by 8c, Revenues Miss; Provides FY20 Revenue Outlook

Qumu (NASDAQ: QUMU) reported Q1 EPS of ($0.21), $0.08 worse than the analyst estimate of ($0.13). Revenue for the quarter came in at $6.2 million versus the consensus estimate of $6.44 million.

Management Commentary
“Scalable, secure, self-service video technology for enterprises is the key value proposition that Qumu provides to its customers. Beginning in mid-March 2020, enterprises around the world implemented work-from-home and travel restrictions in response to COVID-19. Certainly, Qumu has done the same for the health and safety of its global workforce and I want to recognize the Qumu team for their dedication to serving our customers around the world and around the clock,\" said Vern Hanzlik, Qumu President and CEO.

\"We believe the COVID-19 pandemic has become a change agent within enterprises, driving organizations to expand the use of video for business continuity and effectively resetting communication in a new normal,\" continued Hanzlik. \"Video adoption has fueled an exponential increase in usage of our platform in the last weeks of the quarter which continues into the current quarter. We are also experiencing very strong demand from prospects and existing customers as enterprises push to enable and upgrade their video capabilities.”

“Amongst the COVID-19 related opportunities closed during the last week of Q1 was one of significance,\" added Hanzlik. \"An existing customer signed an expansion agreement to harden their video infrastructure in support of 325,000 employees and additional external stakeholders. Although we were only able to recognize a small portion of the multi-million dollar contract as revenue in Q1, significant revenues will be delivered in Q2, as well as additional revenue in the second half of 2020. Given our COVID-19-driven customer deals in Q1, and our visibility to our near-term pipeline, we have confidence in our prospects for revenue growth in 2020.”

GUIDANCE:

Qumu sees FY2020 revenue of $28 million, versus the consensus of $27.44 million.

As Qumu considers its revenue outlook for the balance of 2020, we are cautious due to the unknown financial impact that COVID-19 will have on economies and enterprises around the world. However, based on the strength of first quarter 2020 and second quarter 2020 to date customer contracts and Qumu’s pipeline, management expects 2020 revenue to be approximately $28 million as compared to $25.4 million in 2019. Qumu will continue to assess the revenue outlook for the second half of the year as more information becomes available on customer ordering trends and the economic disruption caused by COVID-19.

For earnings history and earnings-related data on Qumu (QUMU) click here.

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