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Qualtrics International Inc.’s stock popped more than 30% Thursday after struggling SAP said it was exploring the sale of its stake in the business-software company and “focus on our core” of enterprise resource planning.
SAP
SAP,
which currently holds 71% of Qualtrics
XM,
on an undiluted basis, acquired the company in November 2018 for $8 billion. Qualtrics subsequently went public in 2020.
“This is another step in our journey with SAP, one that has the potential to give Qualtrics an even greater opportunity to accelerate our growth and our category leadership in Experience Management,” Qualtrics CEO Zig Serafin said in a statement to MarketWatch. “We believe it’s a win-win situation, where we can continue our partnership with SAP and unlock new value for both of our companies and our shareholders.”
The news came a day after Qualtrics announced fourth-quarter results and revenue guidance that exceeded analysts’ forecasts. Qualtrics on Wednesday reported revenue jumped 23% to $389.1 million from $316 million a year ago. Qualtrics lost $256.4 million, or 43 cents a share, compared with a loss of $309.8 million, or 56 cents a share, a year ago. Adjusted earnings were 3 cents a share, an improvement from an adjusted loss of 7 cents a share in the holiday quarter a year ago.
Analysts polled by FactSet had estimated fourth-quarter revenue of $381 million and adjusted earnings of 2 cents a share.
Qualtrics offered revenue guidance of between $392 million and $394 million for the first quarter, topping the average analyst estimate of $391 million, according to FactSet. Executives’ annual guidance was slightly under analysts’ expectations, however: Qualtrics guidance calls for 2023 sales of $1.66 billion to $1.67 billion, while analysts were expecting $1.69 billion on average, according to FactSet.
A brutal macro environment of cost savings and greater efficiency amid tens of thousands of layoffs has prompted enterprise companies to use Qualtrics’s AI platform, which has proven “critical to helping companies build deeper relationships with their employees and customers to increase revenue and operate more efficiently in a challenging market,” Serafin told MarketWatch in an interview.
Shares of Qualtrics are up 39% so far this year. The broader S&P 500 index
SPX,
has gained 5% in 2023.
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