Looking ahead into the first quarter of 2021, the company expects revenue in the range of $199-201 million and adjusted earnings of about $0.10 per share. Analysts expect EPS of $0.06 on revenue of $185.68 million for the first quarter.
For fiscal 2021, the company predicts total revenue in the range of $905-915 million and adjusted earnings to be in the range of $0.42-0.45 per share. The consensus estimates EPS of $0.30 on revenue of $868.37 million for the full year.
For the fourth quarter, the top line was driven by acquisitions of new customers and the expansion of existing customers. This was backed by a 61% growth in the number of customers with more than 10 employees and 86% growth in the number of customers contributing more than $100K of TTM revenue.
Despite the top-line growth, the company has been showing a consistent decline in the revenues growth rate since the first quarter of 2020. The market experts believe that the short-term weakness has been slowly impacting the company’s top-line growth, which exhibits a material deceleration in the rates and this is likely to continue for this year.
Read: AT&T Q4 earnings review
As of January 31, 2020, the company had cash and cash equivalent plus marketable securities of $855.2 million while the total liabilities stood at $455.9 million.
The stock closed Wednesday’s regular session down 0.57% at $116.80. Following the results, the stock dropped over 4% in the after-hours. At current levels, the fair value is reaching an overvalued point with an estimated return of negative 39%.