Qualtrics International Stock Surges After Q1 Beat, Clocks 50% Growth In Subscription Revenue

Qualtrics International Inc XM reported first-quarter revenue growth of 41% year-over-year to $335.6 million, beating the consensus of $325.6 million.
Subscription revenue increased 50% Y/Y to $280.8M in the quarter.
Adjusted EPS was $0.01, beating consensus estimates of $(0.10).
The gross margin contracted by 30 bps to 70.4%. Operating loss widened to $(290.5) million from $(196.57) million in 1Q21.
Adjusted gross margin was flat at 77%, and adjusted operating margin contracted by 165 bps to 1.2%.
XM’s net cash flows provided by operating activities totaled $23.10 million in Q1, versus cash used of $70.08 million in 1Q21.
Qualtrics held cash and cash equivalents of $836.4 million as of March 31, 2022
2Q22 Outlook: Qualtrics expects revenue between $344 and $346 million versus a consensus of $337.37 million. Subscription revenue between $291 and $293 million.
It expects Non-GAAP operating margin between 1.5% and 2.5%; and Adjusted between $(0.01) and $0.01, versus a consensus of $0.00.
FY22 Outlook: The revenue is expected to be between $1.428 billion and $1.432 billion, versus a consensus of $1.41 billion. Subscription revenue between $1.202 billion and $1.206 billion.
It expects Non-GAAP operating margin between 1% and 3% and adjusted EPS between $0.00 and $0.02, versus a consensus of $(0.01).
Price Action: According to data from Benzinga Pro, XM shares are trading higher by 3.94% at $25.30 during the post-market session on Thursday.