Anaplan (NYSE: PLAN) reported a wider loss in the second quarter of fiscal 2020 helped by higher costs and expenses. The bottom line was narrower than the analysts’ expectations while the top line exceeded consensus estimates. The cloud-based connected planning platform provider guides third-quarter revenue above the Street’s view and lifted its full-year 2020 revenue outlook.
Net loss was $40.64 million, wider than a loss of $21.05 million in the previous year quarter while loss per share narrowed to $0.31 from $0.90 a year earlier driven by higher weighted-average shares outstanding. Adjusted loss per share narrowed to $0.12 from $0.18 last year.
Total revenue jumped by 46% to $84.54 million. The company derived the substantial majority of its revenue from subscriptions for users on its platform, with initial term to be typically two to three years. Subscription revenue climbed by 48% year-over-year and professional services revenue grew by 33%.
Looking ahead into the third quarter, the company expects total revenue in the range of $85.5 million to $86.5 million and negative adjusted operating margin in the range of 19% to 20%. For the full year 2020, Anaplan lifted its revenue outlook to the range of $339 million to $343 million from the previous range of $326 million to $331 million. The negative adjusted operating margin forecast is raised to the range of 19.5% to 20.5% from the prior range of 22.5% to 23.5%.
The company believes its long-term success will depend on widespread adoption of connected planning by enterprises for numerous planning applications with broad use of those applications within their organizations. While the company believes that it is still in the early stages of penetrating the addressable market, it has benefited from rapid customer growth.
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Anaplan has been able to generate a significant increase in revenue from the expanded use of its platform across the enterprise. The company’s future revenue growth and ability to achieve and maintain profitability is dependent upon its ability to maintain existing customer relationships and to continue to expand its customers’ use of its platform.
The company plans to continue investing aggressively in expanding its direct sales force, growing the international business, and research and development. Anaplan also intends to invest to further enhance the user interface, functionality, and usability of its platform, including in machine learning and other artificial intelligence technologies, to further enhance the predictive capabilities of its platform.