Medallia (MDLA) Tops Q3 EPS by 2c, Revenues Beat; Offers 4Q Revenue Guidance Above Consensus

Medallia (NYSE: MDLA) reported Q3 EPS of $0.01, $0.02 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $121 million versus the consensus estimate of $116.91 million.

Financial Highlights for the Third Quarter of Fiscal 2021

• Subscription revenue was $96.9 million, an increase of 22% from the same period last year. Total revenue for the quarter was $121.0 million, an increase of 17% from the same period last year.
• Loss from operations for the quarter was $29.5 million, compared to loss from operations of $41.7 million in the same period last year. Non-GAAP income from operations for the third quarter was $2.1 million, compared to a loss of $2.0 million in the same period last year.
• Net loss for the quarter was $32.2 million, or ($0.22) per share, basic and diluted, compared to net loss of $39.6 million, or ($0.31) per share, basic and diluted, in the same period last year. Non-GAAP net income was $1.1 million, or $0.01 per share, diluted, compared to a non-GAAP net loss of $932,000, or ($0.01) per share, basic and diluted, in the same period last year.
• Cash and cash equivalents, current and noncurrent marketable securities were $657.1 million as of October 31, 2020.

“I was very pleased with our execution in Q3. We added the most new customers in any quarter. Our wins included major enterprise brands across verticals and geographies. We added more than a dozen new go-to-market partners and hired more strong talent to support our growth. With two full virtual quarters behind us, we are confident in our future prospects for Q4 and for fiscal year 2022,” said Leslie Stretch, president and CEO of Medallia.

“IDC research shows that customer experience is critical. It’s actually an increasing priority for the C-Suite post-COVID - according to our research it is the second most important thing behind resilient business operations,” said Alan Webber, vice president for Digital Strategy and Customer Experience, IDC. “CEOs and CFOs recognize the importance of customer experience because they are paying attention to the numbers."

GUIDANCE:

Medallia sees Q4 2021 revenue of $123.5-125.5 million, versus the consensus of $122.83 million.

Medallia is providing the following guidance for the fourth quarter ending January 31, 2021.

• Subscription revenue in the range of $100.5 million to $101.5 million.
• Total revenue in the range of $123.5 million to $125.5 million.
• GAAP loss from operations in the range of $38.7 million to $31.7 million.
• Non-GAAP income from operations in the range of $200,000 to $700,000.

For earnings history and earnings-related data on Medallia (MDLA) click here.

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