Qualtrics (XM) Earnings Highlighted by 61% cRPO Growth, Canaccord Genuity Reiterates Buy

Canaccord Genuity analyst David Hynes Jr. reiterated a Buy rating and $48.00 price target on Qualtrics (NASDAQ: XM) after strength from last quarter persisted into Q2, with continued acceleration in both revenue and bookings. On the top line, subscription revenue of $205M was up 48% y-o-y, an acceleration from 46% last quarter, which the company attributed to a combination of strong new business sales and expansions, favorable in-quarter linearity, and strong renewals – this implies net new ARR of $70M in Q2, seasonally down from $106M last quarter but up from $41M a year ago.

The analyst stated "Qualtrics delivered another strong quarter highlighted by further acceleration in cRPO (+61% growth), sequential improvement in subscription growth (+48%), and an uptick in net revenue retention (122%). Management highlighted broad-based demand – strength in both net new and renewal, acceleration in Employee XM and continued strength in Customer XM, international strength, and a gradually improving post-COVID demand environment."

For an analyst ratings summary and ratings history on Qualtrics click here. For more ratings news on Qualtrics click here.

Shares of Qualtrics closed at $37.80 yesterday.

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