SaaS Q3 earnings season continues šŸ’°

Report comments on: Monday.com, Semrush, Toast, DISCO, Blend Labs, and LegalZoom

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monday.com, a Work OS platform provider, reported better-than-expected third-quarter results. Earnings excluding non-recurring items were $0.05 per share, $0.59 better than the S&P Capital IQ Consensus of ($0.54). 64.9% year-over-year revenue growth recorded at $136.89 million vs. $130.45 million of market expectations.

The company's non-GAAP operating loss narrowed to $2.2 million compared to $9.4 million in Q3 of 2021. Non-GAAP operating margin was negative 2% compared to negative 11% year-on-year.

The number of customers with more than $50k ARR grew 116% year-over-year. The number of paying accounts from new Monday Work OS products has surpassed 3,000.

The company issues upside guidance for Q4, sees Q4 revenue of $140-142 million vs. $138.65 million S&P Capihttps://cloudly.so/resources/saas-q3-earnings-season-continuestal IQ Consensus. Expects Q4 Non-GAAP operating loss of $22 million to $20 million and negative operating margin of 15% to 14%.

For the full year 2022, the company expects total revenue between $509 to $511 million, a non-GAAP operating loss of $83 million to $81 million, and a negative operating margin of approximately 16%.

Semrush, an online visibility management SaaS platform, recorded a 34% revenue growth of $65.8 million in Q3 2022. But reported a net loss of $9.1 million, compared with a net loss of $615 thousand a year ago. Non-GAAP net loss was recorded at $7.1 million (includes $5.8 million expenses of winding down Russia operations), vs. net income of $12 thousand year-on-year.

ARR was up approximately by 33% year-on-year at $267 million.

More than 94,000 customers were recorded as of September 30, 2022, up more than 17% from a year ago. The number of customers paying more than $10K annually, was up more than 70% year over year.

The company issued guidance for the fourth quarter for revenue in the range of $67.25 to $67.75 million. They are expecting a further non-GAAP net loss between $12.5 to $11.5 million which includes one-time relocation costs from moving out of Russia operations.

Semrush gave an outlook for the full year 2022 and expects revenue between $252.8 to $253.3 million.

Toast delivered strong third-quarter results, surpassing $100 billion in annualized GPV for the first time. They recorded a 54.7% year-on-year increase in revenue to $752.0 million vs. $720.92 million S&P Capital IQ Consensus. Reported GAAP loss of $(0.19) per share.

ARR grew 60% year-over-year and was $868 million as of September 30, 2022. Subscription revenue growth was 96% year-over-year. Gross Payment Volume (GPV) increased 53% year-over-year to $25.2 billion.

Company issues upside guidance for Q4 and sees revenue of $730-760 million vs. $730.04 million S&P Capital IQ Consensus. And expects adjusted EBITDA in the range of $(30) million to $(20) million.

For the full year, Toast expects revenue in the range of $2,692 to $2,722 million (up from $2,620 to $2,660 million)

DISCO reported a 15.5% year-on-year revenue growth of $34.48 million and beat market expectations of $33.01 million. But recorded loss of $0.34 per share, $0.03 worse than the S&P Capital IQ Consensus of ($0.31).

GAAP net loss was $20.1 million, compared to $9.2 million in the third quarter of 2021. Adjusted EBITDA was ($13.1) million vs. ($7.5) million in Q3 2021.

The company's customer count grew to 1,318, an increase of 26% year over year.

DISCO issues in-line guidance for FY22, sees revenue of $132.0 to $136.0 million vs. $134.33 million S&P Capital IQ Consensus. The company expects adjusted EBITDA in the range of ($54.0) - ($50.0) million.

Blend Labs reported a loss of $0.19 per share, $0.02 worse than the S&P Capital IQ Consensus of ($0.17). GAAP loss from operations was $129.9 million compared to $70.5 million year-on-year. Non-GAAP loss from operations was $37.1 million vs. $21.1 million year-on-year.

Revenue declined 38.2% year-on-year to $55.35 million vs. $50.1 million S&P Capital IQ Consensus. Title365 segment revenue was $19.3 million, down 65%, reflecting the increase in interest rates and the corresponding decrease in refinance transactions year-on-year.

Adjusted net revenue retention increased to 190%. Total consumer banking transactions grew by 145,000 year-on-year to approximately 229,000.

Blend Labs narrows guidance for FY22 and sees revenue of $235 to $240 million from $230 to $250 million vs. $234.84 million S&P Capital IQ Consensus.

LegalZoom, a leading online platform for legal and compliance solutions, reported third-quarter 2022 results. Earnings excluding non-recurring items were $0.05 per share and were in-line with the market expectations.

With a 4.4% annual growth, the revenue was recorded at $154.4 million vs. $149.95 million S&P Capital IQ Consensus. Subscription revenue increased by 25% (y-o-y) to $91.4 million.

Net loss was $10.1 million for the quarter, or 7% of revenue, compared to $39.7 million, or 27% of revenue in 2021. Non-GAAP net income was $9.9 million vs. $2.6 million in 2021.

LegalZoom issued in-line guidance for Q4, seeing revenue of $145-147 million vs. $145.55 million S&P Capital IQ Consensus. And expects adjusted EBITDA to be $23 million.

The company took proactive measures to strengthen its profitability in recent quarters and issued upside guidance for FY22. They see revenue between $617-619 million vs. $613.67 million S&P Capital IQ Consensus and their prior guidance of $612-616 million. Adjusted EBITDA is expected to be $60 million, revised from $55 million.

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