QAD Inc. (QADB) Reports Q2 Revenues Beat

QAD Inc. (NASDAQ: QADB) reported Q2 revenue for the quarter came in at $74.08 million versus the consensus estimate of $73.52 million.

Additional fiscal 2021 second quarter financial results versus the same period last year, include:

• Subscription revenue of $31.1 million, up from $25.9 million. Currency had a $400,000 negative impact.
• Subscription gross margin of 65 percent, versus 62 percent.
• License revenue of $3 million, compared with $3.5 million. Currency had a $57,000 negative impact.
• Professional services revenue of $13.5 million, versus $17.4 million. Currency had a $454,000 negative impact.
• Professional services gross margin improved to 3 percent from negative 4 percent in the prior-year quarter.
• Maintenance revenue of $26.5 million, compared with $29.6 million. Currency had a $486,000 negative impact.
• GAAP pre-tax income of $500,000, versus a GAAP pre-tax loss of $3.4 million. Revenue mix and expense management measures, including actions taken as a result of COVID-19, helped drive bottom line improvements.
• Non-GAAP pre-tax income of $4.5 million, compared with $43,000.
• GAAP net income of $60,000, or $0.00 per Class A and Class B share, versus a GAAP net loss of $13.3 million, or $(0.69) per Class A share and $(0.57) per Class B share.

“I was pleased to see our strong sales performance this quarter continuing to drive our transformation to the cloud. Subscription revenue growth of 22% on a constant currency basis and overall recurring revenue approaching 80% are testaments to the success of our strategy and the strength of our solutions,” said Anton Chilton, QAD’s Chief Executive Officer. “Steady increases in cloud gross margin combined with our continued focus on prudent cost management have yielded solid improvement to our bottom line financial results.”

Business Outlook:

The Company’s business outlook assumes current foreign exchange rates for the remainder of the quarter. Consistent with the guidance provided for the fiscal 2021 second quarter, QAD is providing guidance for subscription and maintenance revenue for the fiscal 2021 third quarter as follows:

• Subscription revenue of $32.5 million.
• Maintenance revenue of $26 million.

For earnings history and earnings-related data on QAD Inc. (QADB) click here.

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