Servicesource International Inc (NASDAQ:SREV) Reports $56.7 million in GAAP revenue in First Quarter 2017 Financial Results

Servicesource International Inc (NASDAQ:SREV)

Servicesource International Inc (NASDAQ:SREV), a leading provider of revenue growth and outsourced customer success solutions, has announced its results for the first quarter of the 2017 financial year. In a statement, ServiceSource CEO, Christopher M. Carrington, said the company produced results that concurred with its guidance. He added that the company undertook a comprehensive review in the previously announced client contraction in addition to the company’s gains in the fourth quarter of the last financial year. The company has devised a go-forward strategy aimed at increasing efficiency and effectiveness in how results are delivered to clients.

Servicesource International Inc (NASDAQ:SREV) reported $56.7 million in GAAP revenue in Q1. This represents 5.1% decrease compared to the $59.8 million that was reported during the same period in the previous financial year. In Q1, the company reported $11.6 million or $0.13 per fully diluted share in GAAP net loss. The company reported $9.1 million or $0.11 per fully diluted share during the same period the previous financial year. Non-GAAP net loss amounted to $1.6 million or $0.02 per share in Q1 compared to $0.5 million or $0.01 per share that was reported in Q1 of the previous financial year. The company reported $0.9 million in adjusted EBITDA in Q1 of the current financial year compared to $0.3 million that was reported in Q1 of the previous financial year.

Owing to Servicesource International Inc (NASDAQ:SREV)’s analysis of the impacts of customer contraction in the first quarter, as well as the low revenue generated from the new ACV wins and the new logo wins, it has decided to cut revenue expectations. The company has announced plans to implement changes in its strategic operations so that they are in line with clients’ expectations, optimize efficiency and gains from investments as well as strategically positioning itself to meet the requirements of future convertible notes.

For the Q2 of fiscal 2017, Servicesource International Inc (NASDAQ:SREV) has issued a number of guidance. The company is projecting revenue between $55.5 million and $58.5 million, a GAAP operating expenses of around$23 million and non-GAAP operating expenses between $19.5 million and $20.5 million. The company is projecting 26% to 29% in GAAP gross margin and 32% to 35% in non-GAAP gross margin. The company has set GAAP net loss for Q2 2017 at between $12.8 million and $14.8 million while the non-GAAP net loss of between $1 million and a profit of $500,000.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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