Why Responsys Shares Tanked Hard
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Responsys (NAS: MKTG) tanked hard today, down by 34% at the low, after the company reported earnings and worse-than-expected guidance.
So what: Third-quarter revenue added up to $40.5 million, resulting in non-GAAP net income of $3 million, or $0.06 per share. Subscription revenue was $28.5 million, a 19.4% increase. Those were mostly in line with market expectations, but the company's guidance disappointed investors.
Now what: Fiscal 2012 revenue should be in the range of $160 million to $161 million, with non-GAAP earnings per share of approximately $0.20 per share. Responsys should recognize $2.7 million in intangible amortization and incur $6.5 million in stock-based compensation, totals that are excluded from the non-GAAP figure. Next quarter should see sales between $42 million and $43 million.
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The article Why Responsys Shares Tanked Hard originally appeared on Fool.com.Evan Niu, CFA, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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