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Qualtrics Earnings Top Street Estimates

Qualtrics CEO Zig Serafin said the quarter completed a very strong year.

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George Frey/Bloomberg

Qualtrics International
posted better-than-expected fourth-quarter results, as the customer experience management software provider’s business held up well in the face of stiff economic headwinds.

For the quarter,
) posted revenue of $389.1 million, up 23% from a year ago, above the Street consensus call for $381 million. Subscription revenue was $327.6 million, up 26%, and ahead of the consensus call for $324 million. On an adjusted basis, the company earned 3 cents a share, a penny ahead of the Street forecast.

“Qualtrics delivered solid results in Q4, capping off a very strong year of growth and significant operating margin expansion,” Qualtrics CEO Zig Serafin said in a statement. “Qualtrics continues to be critical to helping companies build deeper relationships with their employees and customers to increase revenue and operate more efficiently in a challenging market.”

In late trading, Qualtrics shares were 2% higher, to $11.43.

For the March quarter, the company sees revenue of between $392 million and $394 million, with non-GAAP profits of 1 to 2 cents a share and a non-GAAP operating margin of 4% to 5%. The Wall Street consensus has called for revenue of $391 million and profits of a penny a share.

For all of 2023. Qualtrics sees revenue of between $1.661 billion and $1.669 billion, which is a little below the Street expectation for $1.69 billion. But the company sees non-GAAP profits of 20 to 24 cents a share, well above the consensus of 10 cents, with non-GAAP operating margin improving to the 10% to 11% range.

In an interview with Barron’s, Serafin said that the quarter “capped off a very strong year,” in which revenue increased 36%, with 41% growth in subscription revenue. Profitability has been improving, he said, with non-GAAP operating margin of 6.1% in the latest quarter, up from break even a year ago. 

The company has projected it can reach operating margins of more than 20% and achieve free cash flow margins of 25% by the end of 2026.

Serafin noted that no one is immune from the current economic environment, saying customers continue to scrutinize their purchasing decisions more carefully. But he says Qualtrics benefits from its instrumental role in helping companies understand their customers and employees and that the pipeline of opportunities available to the company continues to grow.

“The nature of our platforms helps companies engage more efficiently and effectively with their customers,” he said. “It’s a real-time AI platform that focuses on human sentiment.”

Write to Eric J. Savitz at


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