BroadSoft Earnings: Here’s Why Investors are Ambivalent Now
BroadSoft, Inc. (NASDAQ:BSFT) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
BroadSoft, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 30.3% to $0.23 in the quarter versus EPS of $0.33 in the year-earlier quarter.
Revenue: Rose 8.59% to $44 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: BroadSoft, Inc. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.23. It beat the average revenue estimate of $42.84 million.
Quoting Management: “Our second quarter performance was driven by the positive results our customers are experiencing with their hosted Unified Communications services in the marketplace,” said Michael Tessler, president and chief executive officer, BroadSoft. “There are many factors driving the demand for hosted Unified Communications, including the growth of mobile workers. This workforce evolution is pushing enterprises to seek business tools, such as hosted Unified Communications, that speed decision-making, allow remote teams to easily collaborate and ensure enterprises run efficiently. The extensive mobile capabilities of our UC-One platform are designed to enable our service provider customers to meet the needs of the increasingly mobile enterprise.”
“We were pleased with our results for the second quarter from a revenue, billings and profitability perspective,” said Jim Tholen, chief financial officer, BroadSoft. “A highlight of the quarter was the 25% year-over-year growth in our software billings. This strength was driven by our enterprise-centric UC solutions which saw strong demand across products, end-market segments and geographies.”
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