Earnings Review and Free Research Report: Xactly’s Sales Increased 6%

Research Desk Line-up: Guidewire Software Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Xactly Corp. (NYSE: XTLY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=XTLY, following the Company’s announcement of its first quarter fiscal 2018 financial results on June 08, 2017. The provider of cloud-based incentive solutions, which is set to be acquired by Vista Equity, reported that net loss narrowed on per share basis during the reported period. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected Guidewire Software, Inc. (NYSE: GWRE) for due-diligence and potential coverage as the Company announced on June 01, 2017, its financial results for Q3 FY17 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Guidewire Software when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on XTLY; also brushing on GWRE. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=XTLY

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Earnings Reviewed

For the three months ended April 30, 2017, Xactly reported total revenue of $24.6 million, up 6% compared to revenue of $23.3 million for the three months ended April 30, 2016.

For Q1 FY18, Xactly’s Subscription services revenue increased 13% to $19.50 million compared to $17.32 million in Q1 FY17, driven by the addition of new customers and to a lesser extent, an increase in subscribers at existing customers, as well as the sale of additional modules to existing customers. The Company’s Professional services revenue totaled $5.14 million, down 13% compared to revenue of $5.93 million in the prior year’s same quarter. The decline was attributed to a drop in the Company’ professional services average hourly billing rate.

Xactly’s cost of revenue increased by 10% on a y-o-y basis to $9.73 million in Q1 FY18 compared to cost of revenue of $9.68 million in Q1 FY17. The Company’s cost of subscription services revenue increased 11% on a y-o-y basis to $4.61 million, while the cost of professional services fell 8% to $5.13 million.

Xactly’s overall gross margin increased to 60% for Q1 FY18 compared to 58 % for Q1 FY17. The Company’s Research and Development expenses increased by 12% to $4.88 million for the reported quarter, driven by an increase in personnel costs related to increased headcount and an increase in stock-based compensation expense. Xactly’s sales and marketing expenses totaled $9.98 million for the reported quarter, up 8% compared to the prior year’s same quarter due to a rise in personnel costs related to increased headcount, growth in stock-based compensation expense, and an increase in marketing and promotions.

For Q3 FY17, Xactly reported a net loss of $4.35 million, or $0.14 per share, compared to net loss of $4.32 million, or $0.15 per diluted share, in Q3 FY16.

Customer Base

As of April 30, 2017, Xactly had approximately 303,000 subscribers compared to approximately 268,000 subscribers at April 30, 2016, reflecting an increase of approximately 13%. No single customer accounted for more than 5% of our revenue for the three months ended April 30, 2017 or for the same period in 2016. While approximately 56% of the Company’s customers were enterprise and mid-market companies, Xactly derived approximately 93% of its revenue from enterprise and mid-market customers for the reported quarter.

Cash Matters

Xactly generated $2.9 million in cash from operating activities for Q3 FY17 compared to cash utilization of $1.4 million for operating activities in Q3 FY16. As of April 30, 2017, and January 31, 2017, the Company had deferred revenue of $57.8 million and $56.9 million, respectively.

Xactly generated $0.5 million in cash from financing activities for the three months ended April 30, 2017, which was primarily due to proceeds of $1.6 million from the exercise of stock options and issuance of common stock under its Employee Stock Purchase Plan (ESPP).

As of April 30, 2017, Xactly had cash, cash equivalents, and marketable securities of $44.2 million, which were predominantly denominated in US dollars and consisted of bank deposits, money market funds, corporate bonds and notes, US Treasuries, certificates of deposit, and commercial paper.

Acquisition Update

On May 30, 2017, Xactly announced that it has entered into a definitive agreement to be acquired by Vista Equity Partner, a leading private equity firm focused on investments in software, data, and technology-enabled businesses.

Under terms of the agreement, affiliates of Vista will acquire all outstanding shares of Xactly’s common stock for a total value of approximately $564 million. Xactly’s stockholders will receive $15.65 in cash per share, representing approximately 17% premium to the closing price as of May 26, 2017, and approximately 31% premium compared to the 3-month volume weighted average price of Xactly’s common stock.

The closing of the transaction is subject to customary closing conditions, including the approval of Xactly’s stockholders and antitrust approval in the United States. The transaction is expected to close in the third quarter of 2017’s calendar year.

Stock Performance

Xactly’s share price finished yesterday’s trading session flat at $15.65. A total volume of 395.41 thousand shares have exchanged hands. The Company’s stock price skyrocketed 34.33% in the last three months, 40.36% in the past six months, and 38.86% in the previous twelve months. Additionally, the stock soared 42.27% since the start of the year. The stock currently has a market cap of $499.08 million.

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