MODN - Model N stock rises on Q3 earnings beats raised full year outlook

Model N ( NYSE: MODN ) shares surged 20% on Wednesday after the firm delivered better-than-expected third quarter results and raised full year outlook.

Late Tuesday, the California-based revenue management solutions provider reported revenues of $56.2M (+10% Y/Y), with subscription revenues up 10% to $40.6M.

Adj. net income grew 48% Y/Y to $8.5M, or $0.23 per diluted share - topping Wall Street estimates. Adjusted EBITDA also surged 36% Y/Y to $10M.

CEO Jason Blessing stated, "We continued our strong momentum in Q3, posting another quarter of very strong bookings and exceeded all guidance metrics [...] Looking ahead, we remain laser focused on driving profitable growth and completing Model N's transformation to a cloud company."

The company raised its guidance for full fiscal year 2022, expecting $217M– $217.5M in revenue vs. consensus of $216.92M and non-GAAP EPS of $0.70 - $0.72 vs. consensus of $0.70. Prior outlook for full year revenue was $212M – $214.5M, while non-GAAP EPS was seen at non-GAAP $0.46 – $0.52.

For Q4, Model N ( MODN ) expects revenue between $56.0 - $56.5M vs. consensus of $56.38M; subscription revenue of $41.5 - $42M; Non-GAAP EPS of $0.18 - $0.20 vs. consensus of $0.19; and Adjusted EBITDA of $8.0 - $8.5M.

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