Latest news with #RevenueBeat
Yahoo
3 days ago
- Business
- Yahoo
AME Q2 Deep Dive: Acquisitions and Segment Resilience Drive Guidance Raise
Electronic products manufacturer AMETEK (NYSE:AME) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 2.5% year on year to $1.78 billion. Guidance for next quarter's revenue was better than expected at $1.79 billion at the midpoint, 0.9% above analysts' estimates. Its non-GAAP profit of $1.78 per share was 5.5% above analysts' consensus estimates. Is now the time to buy AME? Find out in our full research report (it's free). AMETEK (AME) Q2 CY2025 Highlights: Revenue: $1.78 billion vs analyst estimates of $1.73 billion (2.5% year-on-year growth, 2.8% beat) Adjusted EPS: $1.78 vs analyst estimates of $1.69 (5.5% beat) Adjusted EBITDA: $569.3 million vs analyst estimates of $544.1 million (32% margin, 4.6% beat) Revenue Guidance for Q3 CY2025 is $1.79 billion at the midpoint, above analyst estimates of $1.78 billion Management slightly raised its full-year Adjusted EPS guidance to $7.13 at the midpoint Operating Margin: 26%, in line with the same quarter last year Organic Revenue was flat year on year vs analyst estimates of 1.3% declines (128.2 basis point beat) Market Capitalization: $42.71 billion StockStory's Take AMETEK's second quarter saw a positive response from the market, underpinned by results that surpassed Wall Street expectations and demonstrated resilience across core business segments. Management attributed the quarter's growth to strong performance in the Electromechanical Group, which delivered record operating income and notable margin expansion, as well as ongoing execution of acquisition integration. CEO David Zapico cited the impact of recent product launches and strategic growth investments, noting particular strength in aerospace and defense along with improvements in the automation and Paragon businesses. He also highlighted the company's ability to manage through challenging macroeconomic conditions by leveraging operational agility and targeted pricing actions. Looking ahead, AMETEK's updated outlook is shaped by contributions from the recent FARO Technologies acquisition, anticipated margin improvements, and expectations of continued strength in its aerospace, defense, and power businesses. Management pointed to ongoing investment in research, development, and engineering as a key driver of future growth, while also referencing proactive steps to address tariff-related uncertainties. CFO Dalip Puri stated that AMETEK intends to maintain a strong balance sheet to support further portfolio expansion, emphasizing, "We continue to have significant financial capacity and flexibility with over $2 billion of cash and available credit facilities to support our growth initiatives." Key Insights from Management's Remarks Management attributed the quarter's performance to successful integration of acquisitions, robust order growth in targeted verticals, and margin expansion in key segments. Electromechanical Group momentum: The Electromechanical Group (EMG) achieved record sales, fueled by recovery in automation and Paragon businesses. Management emphasized that the destocking cycle in these units has ended, driving robust order and margin gains. Aerospace and defense growth: AMETEK's aerospace and defense segment delivered high single-digit organic growth, with broad strength across subsegments, especially commercial original equipment manufacturing (OEM). The company increased its full-year outlook for this area, citing strong demand and new program wins. Acquisition of FARO Technologies: The recent purchase of FARO Technologies expands AMETEK's presence in digital reality and 3D metrology, complementing its existing Creaform business. Management expects significant operating margin improvement from integration and sees recurring revenue potential through service and cloud-based subscriptions. Tariff mitigation actions: AMETEK enacted a multi-pronged response to tariffs, including selective price increases, supply chain adjustments, and manufacturing localization, which management said successfully offset anticipated cost headwinds. Segment-specific trends: While medtech, automation, and food-related businesses showed positive trends, semiconductor and research markets were identified as headwinds, with research comprising about 10% of AMETEK's exposure and expected to remain challenged near term. Drivers of Future Performance AMETEK's forward guidance centers on continued integration of acquisitions, growth in high-margin segments, and navigating tariff and funding uncertainties. Integration of FARO Technologies: Management believes integrating FARO will deliver above-average cost synergies and margin expansion within three years, with recurring revenue streams from service and software subscriptions supporting long-term growth. End-market and segment resilience: The company expects sustained momentum in aerospace, defense, and power businesses, with order backlogs supporting mid-single-digit growth. However, management noted ongoing sluggishness in process and analytical markets, particularly where research funding is delayed. Tariff and macroeconomic adjustments: Management highlighted that tariff-related headwinds are being actively mitigated through pricing and supply chain strategies, but acknowledged that ongoing trade and funding uncertainties could affect customer project timing and near-term organic growth, especially in process and research verticals. Catalysts in Upcoming Quarters Looking ahead, our analysts will monitor (1) the pace and impact of FARO Technologies' integration, particularly the realization of cost synergies and recurring revenue contributions; (2) sustained order growth and margin expansion in the Electromechanical Group, especially in automation and Paragon; and (3) resolution of tariff and funding uncertainties affecting process and research end markets. Continued investment in new product development and the health of AMETEK's acquisition pipeline will also be critical markers to track. AMETEK currently trades at $184.94, up from $176.88 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free). High Quality Stocks for All Market Conditions Trump's April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
06-08-2025
- Business
- Yahoo
Brink's (NYSE:BCO) Q2 Sales Beat Estimates, Guides for Strong Sales Next Quarter
Cash management services provider Brink's (NYSE:BCO) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 3.8% year on year to $1.30 billion. Guidance for next quarter's revenue was better than expected at $1.33 billion at the midpoint, 2% above analysts' estimates. Its non-GAAP profit of $1.79 per share was 23.7% above analysts' consensus estimates. Is now the time to buy Brink's? Find out in our full research report. Brink's (BCO) Q2 CY2025 Highlights: Revenue: $1.30 billion vs analyst estimates of $1.27 billion (3.8% year-on-year growth, 2.1% beat) Adjusted EPS: $1.79 vs analyst estimates of $1.45 (23.7% beat) Adjusted EBITDA: $232 million vs analyst estimates of $215.9 million (17.8% margin, 7.5% beat) Revenue Guidance for Q3 CY2025 is $1.33 billion at the midpoint, above analyst estimates of $1.30 billion Adjusted EPS guidance for Q3 CY2025 is $2.05 at the midpoint, above analyst estimates of $2.01 EBITDA guidance for Q3 CY2025 is $250 million at the midpoint, above analyst estimates of $244.8 million Operating Margin: 10.3%, in line with the same quarter last year Free Cash Flow was $152.2 million, up from -$122.8 million in the same quarter last year Market Capitalization: $3.72 billion Mark Eubanks, president and CEO, said: 'I am proud of our consistent execution and the delivery of another quarter of meaningful progress against our strategic priorities. We continue to grow higher-margin subscription-based AMS / DRS revenue, expand our profit margins, improve our cash conversion and return capital to shareholders. This was clear in our strong second quarter performance which exceeded the top end of our quarterly guidance for revenue, EBITDA and EPS. We are increasing our expectations for the full-year, supported by strong operational momentum in the first-half of the year, good second-half visibility into accelerating AMS / DRS organic revenue growth, and favorable first-half currency trends." Company Overview Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE:BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $5.07 billion in revenue over the past 12 months, Brink's is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. As you can see below, Brink's grew its sales at a solid 7.3% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Brink's recent performance shows its demand has slowed as its annualized revenue growth of 3.5% over the last two years was below its five-year trend. This quarter, Brink's reported modest year-on-year revenue growth of 3.8% but beat Wall Street's estimates by 2.1%. Company management is currently guiding for a 5.7% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and indicates its newer products and services will not lead to better top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Brink's was profitable over the last five years but held back by its large cost base. Its average operating margin of 9% was weak for a business services business. On the plus side, Brink's operating margin rose by 3.8 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, Brink's generated an operating margin profit margin of 10.3%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Brink's EPS grew at an astounding 16.6% compounded annual growth rate over the last five years, higher than its 7.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Brink's earnings can give us a better understanding of its performance. As we mentioned earlier, Brink's operating margin was flat this quarter but expanded by 3.8 percentage points over the last five years. On top of that, its share count shrank by 16.2%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Brink's, its two-year annual EPS growth of 10.4% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q2, Brink's reported adjusted EPS at $1.79, up from $1.67 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Brink's full-year EPS of $7.04 to grow 14.1%. Key Takeaways from Brink's Q2 Results We were impressed by how significantly Brink's blew past analysts' EPS expectations this quarter. We were also glad its revenue guidance for next quarter exceeded Wall Street's estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 2.6% to $91 immediately following the results. Indeed, Brink's had a rock-solid quarterly earnings result, but is this stock a good investment here? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
05-08-2025
- Business
- Yahoo
Myriad Genetics (NASDAQ:MYGN) Reports Strong Q2, Stock Jumps 30.6%
Genetic testing company Myriad Genetics (NASDAQ:MYGN) reported revenue ahead of Wall Street's expectations in Q2 CY2025, but sales were flat year on year at $213.1 million. The company's full-year revenue guidance of $823 million at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts' consensus estimates. Is now the time to buy Myriad Genetics? Find out in our full research report. Myriad Genetics (MYGN) Q2 CY2025 Highlights: Revenue: $213.1 million vs analyst estimates of $202 million (flat year on year, 5.5% beat) Adjusted EPS: $0.05 vs analyst estimates of -$0.01 (significant beat) Adjusted EBITDA: $14.5 million vs analyst estimates of $4.75 million (6.8% margin, significant beat) The company slightly lifted its revenue guidance for the full year to $823 million at the midpoint from $815 million EBITDA guidance for the full year is $30 million at the midpoint, above analyst estimates of $20.53 million Operating Margin: -154%, down from -17.3% in the same quarter last year Free Cash Flow was -$20.5 million compared to -$2.6 million in the same quarter last year Market Capitalization: $366.9 million "We delivered solid second-quarter results, driven by continued strength in hereditary cancer testing in oncology, improving momentum in hereditary cancer testing for unaffected individuals, and favorable pricing trends supported by mix and our ongoing efforts to expand payer coverage. Our disciplined approach to expense management contributed to our improved profitability while we continued to invest in strategic drivers to enable long-term growth," said Sam Raha, President and CEO, of Myriad Genetics. Company Overview Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Myriad Genetics grew its sales at a mediocre 5.5% compounded annual growth rate. This was below our standard for the healthcare sector and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Myriad Genetics's annualized revenue growth of 9.2% over the last two years is above its five-year trend, suggesting some bright spots. This quarter, Myriad Genetics's $213.1 million of revenue was flat year on year but beat Wall Street's estimates by 5.5%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Adjusted Operating Margin Although Myriad Genetics was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average adjusted operating margin of negative 1.3% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, Myriad Genetics's adjusted operating margin rose by 4.2 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company's margin has increased by 11.2 percentage points on a two-year basis. In Q2, Myriad Genetics generated an adjusted operating margin profit margin of 4%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Myriad Genetics's full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it's at a critical moment in its life. In Q2, Myriad Genetics reported adjusted EPS at $0.05, in line with the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Myriad Genetics to perform poorly. Analysts forecast its full-year EPS of $0.11 will hit $0.09. Key Takeaways from Myriad Genetics's Q2 Results This was a beat and raise quarter. We were impressed by how significantly Myriad Genetics blew past analysts' revenue, EBITDA, and EPS expectations this quarter. We were also excited its full-year revenue guidance was raised and full-year adjusted EBITDA guidance was ahead of expectations. Zooming out, we think this quarter featured some very important positives. The stock traded up 30.6% to $5.04 immediately after reporting. Myriad Genetics put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
01-08-2025
- Business
- Yahoo
Standex (NYSE:SXI) Reports Strong Q2
Industrial manufacturer Standex (NYSE:SXI) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 23.2% year on year to $222 million. Its non-GAAP profit of $2.28 per share was 8.7% above analysts' consensus estimates. Is now the time to buy Standex? Find out in our full research report. Standex (SXI) Q2 CY2025 Highlights: Revenue: $222 million vs analyst estimates of $214.4 million (23.2% year-on-year growth, 3.5% beat) Adjusted EPS: $2.28 vs analyst estimates of $2.10 (8.7% beat) Adjusted EBITDA: $51.6 million vs analyst estimates of $50.38 million (23.2% margin, 2.4% beat) Operating Margin: 15.6%, in line with the same quarter last year Free Cash Flow Margin: 11.2%, down from 12.2% in the same quarter last year Market Capitalization: $1.99 billion Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "We concluded our fiscal year with a very strong performance in the fourth quarter. Adjusted operating margin expanded 350 basis points year-on-year to a record 20.6% and adjusted earnings per share grew more than 20% to a record $2.28. These results reflect the continued evolution of our portfolio, accelerated by the acquisition of the Amran/Narayan Group in October 2024, and continued solid operational performance from core businesses. We paid down approximately $27 million of debt in the fiscal fourth quarter, and our net leverage ratio was reduced to 2.6x." Company Overview Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Standex grew its sales at a tepid 5.5% compounded annual growth rate. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Standex's recent performance shows its demand has slowed as its annualized revenue growth of 3.3% over the last two years was below its five-year trend. This quarter, Standex reported robust year-on-year revenue growth of 23.2%, and its $222 million of revenue topped Wall Street estimates by 3.5%. Looking ahead, sell-side analysts expect revenue to grow 10.8% over the next 12 months, an improvement versus the last two years. This projection is commendable and indicates its newer products and services will spur better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Standex has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 14.3%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Standex's operating margin rose by 3 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, Standex generated an operating margin profit margin of 15.6%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Standex's EPS grew at a spectacular 16.8% compounded annual growth rate over the last five years, higher than its 5.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Standex's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Standex's operating margin was flat this quarter but expanded by 3 percentage points over the last five years. On top of that, its share count shrank by 1.7%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Standex, its two-year annual EPS growth of 7.8% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q2, Standex reported adjusted EPS at $2.28, up from $1.76 in the same quarter last year. This print beat analysts' estimates by 8.7%. Over the next 12 months, Wall Street expects Standex's full-year EPS of $7.85 to grow 9.1%. Key Takeaways from Standex's Q2 Results We were impressed by how significantly Standex blew past analysts' revenue expectations this quarter. We were also happy its EPS and EBITDA outperformed Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $164.74 immediately after reporting. Big picture, is Standex a buy here and now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
31-07-2025
- Business
- Yahoo
Workiva's (NYSE:WK) Q2: Strong Sales, Stock Soars
Financial and compliance reporting software company Workiva (NYSE:WK) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 21.2% year on year to $215.2 million. The company expects next quarter's revenue to be around $219 million, close to analysts' estimates. Its non-GAAP profit of $0.19 per share was significantly above analysts' consensus estimates. Is now the time to buy Workiva? Find out in our full research report. Workiva (WK) Q2 CY2025 Highlights: Revenue: $215.2 million vs analyst estimates of $208.9 million (21.2% year-on-year growth, 3% beat) Adjusted EPS: $0.19 vs analyst estimates of $0.05 (significant beat) Adjusted Operating Income: $8.23 million vs analyst estimates of $549,430 (3.8% margin, significant beat) The company slightly lifted its revenue guidance for the full year to $871.5 million at the midpoint from $866 million Management raised its full-year Adjusted EPS guidance to $1.35 at the midpoint, a 27.5% increase Operating Margin: -10.3%, up from -13% in the same quarter last year Free Cash Flow was $49.32 million, up from -$8.12 million in the previous quarter Customers: 6,467, up from 6,385 in the previous quarter Net Revenue Retention Rate: 114%, up from 110% in the previous quarter Billings: $230.6 million at quarter end, up 20.6% year on year Market Capitalization: $3.71 billion Company Overview Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Workiva grew its sales at a 17.7% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. Luckily, there are other things to like about Workiva. This quarter, Workiva reported robust year-on-year revenue growth of 21.2%, and its $215.2 million of revenue topped Wall Street estimates by 3%. Company management is currently guiding for a 18% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 15.6% over the next 12 months, a slight deceleration versus the last three years. Despite the slowdown, this projection is healthy and suggests the market is baking in success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Billings Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Workiva's billings punched in at $230.6 million in Q2, and over the last four quarters, its growth was impressive as it averaged 22.3% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. Customer Retention One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company's products and services over time. Workiva's net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 112% in Q2. This means Workiva would've grown its revenue by 11.8% even if it didn't win any new customers over the last 12 months. Trending up over the last year, Workiva has a good net retention rate, proving that customers are satisfied with its software and getting more value from it over time, which is always great to see. Key Takeaways from Workiva's Q2 Results We were impressed by how significantly Workiva blew past analysts' billings expectations this quarter. We were also glad its EPS guidance for next quarter trumped Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 5.9% to $67.60 immediately after reporting. Sure, Workiva had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
