BroadSoft, a globally renowned provider of services and software designed to allow telecommunication providers to offer cloud-based and hosted communications to enterprise customers, announced their recent financial results.
Ultimately, the first quarter has been a positive one for the company. Some of the highlights from the innovator included:
- GAAP diluted and basic net loss per share came to $0.35 per common share.
- Non-GAAP diluted earnings came to $0.19 per common share.
- GAAP operations loss came to $7.6 million.
- Non-GAAP operations loss came to $6.5 million (8% of revenue).
- GAAP gross profit came to 69% of total revenue.
- Non-GAAP gross profit came to 73% of total revenue.
- Total revenue increased by 9% year-over-year to $79.7 million
Examining the First Three Months
For BroadSoft, the first financial quarter for 2017 was made up of January, February, and March. In that time, their total revenue rose to approximately $79.7 million, which was an increase of around 9% from the first quarter of 2016.
In total, the net loss for the first quarter was $10.5 million, compared to a loss of only $1.5 million during the first quarter of 2016. In other words, though the revenue rose dramatically, the loss was pretty significant too. On the basis of Non-GAAP earnings, the first quarter of 2017 saw a growth of $6.2 million, compared to a non-GAAP income of $11.1 million.
BroadSoft plan to discuss the financial results of their first quarter during a conference call and live audio webcast.
What do BroadSoft Think of the Results?
Although some people might consider the outcome of the first quarter to be a little up and down, the president and chief executive for BroadSoft, Mr. Michael Tessler, commented that the group was pleased with the outcomes. BroadSoft feel that their first quarter was positive, allowing the business to make meaningful process against their objectives for 2017. The goals that the company is continuing to pursue during this year will be focused on helping service provider customers to offer more cloud communication opportunities to enterprises.
Tessler noted that if the company continues to remain true to their objectives during this year, they feel that they will be in a good position to take control of UC and the movement to the cloud. The company has revised their revenue guidance for this year, moving it down to a more modest goal. However, the business claim that they are still positive about achieving their long-term goals.
According to the chief financial officer of BroadSoft, Jim Tholen, the guidance change was made due to a reduction in subscription, professional services, and support expectations for revenue. The company continues to expect growth in software anywhere up to 10%, and BroadSoft are still maintaining their non-GAAP earnings.
BroadSoft Guidance
During the second quarter of this year, BroadSoft believes that their revenue will reach around $84 million to $88 million. The company also expects that it will achieve earnings on a non-GAAP basis of between $0.20 and $0.32 per common share. Throughout 2017, BroadSoft believes that they’ll earn a complete revenue of up to $390 million, and earnings on a non-GAAP basis of up to $2.50 per diluted share.
