Why Medallia Stock Plunged Today

Shares of Medallia (NYSE: MDLA) have plunged today, down by 9% as of 2:20 p.m. EDT, after the company reported first-quarter earnings. The results topped expectations but the enterprise software specialist guided the second quarter below consensus estimates.

Revenue in the first quarter increased 20% to $112.7 million, ahead of the $107 million in sales that analysts were expecting. Adjusted net income came in at $3.1 million, or $0.02 per share, which was better than the $0.02 per share in adjusted net losses that Wall Street was looking for. Subscription revenue was $89 million, and Medallia finished the quarter with $407.5 million in cash.

Image source: Medallia.

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Source Fool.com