Qualtrics raises full-year sales forecast above Wall Street expectations (updated)

Qualtrics International

20/10/2021 22:49

(Adds stock move)
    By Stephen Nellis
    Oct 20 (Reuters) - Qualtrics International  XM.O  on
Wednesday raised its full-year sales forecast above analyst
estimates as the business software firm reported third-quarter
revenue and profits that also beat expectations. 
    The Utah-based company, whose software businesses solicit
feedback from customers and employees to improve products, said
it now forecasts full-year 2021 revenue with a midpoint of
$1.057 billion, slightly ahead of analyst estimates of $1.012
billion, according to IBES data from Refinitiv.
    Shares rose 5.2% to $46.54 in after-hours trading after the
results.
    The firm also forecast current fourth-quarter sales and
adjusted losses with midpoints of $297 million and 3 cents per
share, better than Wall Street estimates of $263.82 million and
a 4-cent-per-share adjusted loss, according to Refinitiv data.
    Qualtrics is controlled by German software giant SAP SE
 SAPG.DE , which retained a controlling stake after Qualtrics
raised $1.55 billion in an initial public offering in January.
    Qualtrics is generating losses because it is investing
heavily to acquire new customers. 
    For the third quarter ended Sept. 30, Qualtrics said sales
were $271.6 million, up 41%, and adjusted profit was 1 cent per
share. The results beat analyst expectations of $258.19 million
in sales and a 2-cent-per-share adjusted loss, according to
Refinitiv data.
    Businesses can use Qualtrics to survey their employees,
which Chief Executive Zig Serafin said has led to sales growth
this year as employers try to hang on to workers in a tight
labor market. 
    In an interview, Serafin said food delivery firm DoorDash
Inc  DASH.N  recently expanded its use of Qualtrics "to tune in
to the needs of their employees and their workforce, especially
in the war for talent."

 (Reporting by Stephen Nellis in San Francisco, Editing by Nick
Zieminski and Mark Porter)
 ((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))