PLAN - This Software Stock Could Be a Big Winner From a COVID-19 Vaccine
Shares of enterprise resource planning (ERP) software outfit Anaplan (NYSE: PLAN) have reversed course after a rough start to 2020 and are flying high once again. After reporting results for the three months ended Oct. 31, the stock is up nearly 30% year to date. This software vendor could have a lot going for it in 2021, too, especially as effects of the pandemic start to wear off, an increasingly likely possibility given the positive news about vaccines for COVID-19.
Anaplan's third-quarter revenue increased 28% year over year to $115 million. This figure topped management's outlook from a few months ago for revenue to be as much as $110 million. Customers and prospective customers are still being affected by the pandemic, but Anaplan continues to make progress getting itself back to pre-crisis growth rates. Revenue increased 45% last year, its first full year as a public company after a late-2018 IPO.
Within the quarterly total, subscription revenue to the company's cloud-based ERP software, which an organization uses to plan everything from finances to inventory management to a marketing campaign, grew 31% from a year ago and made up over 91% of total sales. CEO Frank Calderoni said that some 60% of new bookings came from existing customers, reflecting the challenging environment for large organizations trying to free up enough budget to execute on their digital transformation.
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This Software Stock Could Be a Big Winner From a COVID-19 Vaccine