Why Anaplan Dropped 20% on Wednesday

Shares of Anaplan (NYSE: PLAN) dropped by 23% on Wednesday morning after the company reported its fiscal third-quarter results. The cloud platform for worker connectivity and performance was down around 17.5% as of 12:16 .m. ET.

After the bell Tuesday, Anaplan released its earnings results for the period ending Oct. 31. Revenue grew 35.2% year over year to $155.3 million, but its GAAP operating loss was $48.2 million, widening from its $35.9 million loss in the prior-year period. The company had a dollar-based net expansion rate of 119% in fiscal Q3, which means that from its existing customers, Anaplan had approximately 19% year-over-year revenue growth.

Image source: Getty Images.

Source Fool.com