$XM – Qualtrics Earnings Summary

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I wrote about Qualtrics $XM a few weeks ago and recommended an initial position at about $32 / share. Yesterday the company announced Q1 2021 earnings. Here is an update and earnings summary.

Qualtrics Experience Platform

Highlights

 Q1 2021 Total Revenue of $238.6M, up 36% Year-over-year

Strong 36% revenue growth rate

DBNER (Dollar based net retention) was at 120%(constant), while customers spending more than $100K grew to 1,457 from 1338 in the previous quarter.

Margins remained steady at 77.2% (Subscription Margin is 90%).

Subscription revenue for the first quarter was $186.9 million, up from $128.3 million one year ago, an increase of 46% year-over-year.

Operating loss was $(196.6) million, compared to $(36.9) million one year ago.

The won several new customers from $APTV (Aptiv) and $DOCU (Docusign) to $TDOC (Teledoc) and $RCL (Royal Caribbean Cruise Lines)

New customer wins

Strong guidance for Q2 and year

Q2 2021: Total revenue between $240M and $242M (+30% YoY), up from $239M previously.

EPS (Loss per share actually of $0.01 – $0.03 (vs $0.04 previously).

Annual 2021: Total revenue between $980M and $984M (+29% YoY) up from $950 M previously.

Strong guidance for Q2 and FY 2021

Q1 Investor presentation and conference call transcript.