• February 25, 2021
  • 17 min read

Anaplan Announces Fourth Quarter and Full Fiscal Year 2021 Financial Results

  • Fourth Quarter Subscription Revenue up 26% Year-Over-Year
  • Remaining Performance Obligation of $818 million, up 25% Year-Over-Year
  • Dollar-Based Net Expansion of 114%

SAN FRANCISCO, February 25, 2021 — Anaplan, Inc. (NYSE:PLAN), provider of a leading cloud-native platform for orchestrating business performance, today announced financial results for its fourth quarter and full fiscal year ended January 31, 2021.

“We delivered solid execution in FY21 with steady new customer growth this quarter,” said Frank Calderoni, chief executive officer of Anaplan. “We are seeing a rising demand for rapid scenario-based planning as our customers are looking for the best way to plan for an uncertain and unpredictable future.”

Fourth Quarter Fiscal 2021 Financial Results

  • Total revenue was $122.5 million, an increase of 25% year-over-year. Subscription revenue was $112.6 million, an increase of 26% year-over-year.
  • GAAP operating loss was $41.5 million or 33.8% of total revenue, compared to $37.6 million in the fourth quarter of fiscal 2020 or 38.3% of total revenue. Non-GAAP operating loss was $9.4 million, or 7.7% of total revenue, compared to $11.0 million in the fourth quarter of fiscal 2020, or 11.2% of total revenue.
  • GAAP loss per share was $0.29, compared to $0.27 in the fourth quarter of fiscal 2020. Non-GAAP loss per share was $0.07 in the fourth quarter of fiscal 2021 and fiscal 2020.
  • Cash and Cash Equivalents were $321.0 million as of January 31, 2021.

Full Year Fiscal 2021 Financial Results

  • Total revenue was $447.8 million, an increase of 29% year-over-year. Subscription revenue was $408.2 million, an increase of 33% year-over-year.
  • GAAP operating loss was $153.8 million or 34.3% of total revenue, compared to $148.4 million in fiscal 2020 or 42.7% of total revenue. Non-GAAP operating loss was $38.5 million, or 8.6% of total revenue, compared to $56.5 million in fiscal 2020, or 16.2% of total revenue.
  • GAAP loss per share was $1.10, compared to $1.15 in fiscal 2020. Non-GAAP loss per share was $0.27, compared to $0.44 in fiscal 2020.

Financial Outlook

The company is providing the following guidance for its first quarter fiscal 2022:

  • Total revenue is expected to be between $126.5 and $127.5 million.
  • Non-GAAP operating margin is expected to be between negative 9.5% and 10.5%.
  • As a baseline for first quarter, we expect billings to be in the range of $122 million to $124 million.

The company is updating its previous guidance provided on November 24, 2020 for its full year fiscal 2022:

  • Total revenue is expected to be between $550 and $555 million (was approximately $550 million).
  • Non-GAAP operating margin is expected to be between negative 8.0% and 9.0%.

The guidance provided above are forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures used in this press release, definitions of our operating metrics and a reconciliation of GAAP and non-GAAP financial measures is contained in the tables below. A reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, costs and expenses, including the impact of stock-based compensation, which is dependent on factors such as future stock price and volume of equity awards granted in the future, that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant.

Recent Highlights

Webcast and Conference Call Information
Event: Anaplan Fourth Quarter and Full Fiscal Year 2021 Earnings Conference Call
When: Thursday, February 25, 2021
Time: 5:30 a.m. PT / 8:30 a.m. ET
Live Call: Please see online registration
Replay: (800) 585-8367 or (416) 621-4642 with passcode 4093584
Live Webcast: https://investors.anaplan.com or with replay available for 12 months

Upcoming Investor Events
Anaplan management will be participating in the following investor conference:

Morgan Stanley Technology, Media and Telecom Conference
Wednesday, March 3, 2021
1:15pm PT/4:15pm ET

Interested parties can listen to the live audio webcast of Anaplan’s presentations available on Anaplan’s Investor Center website at https://investors.anaplan.com. A replay of the presentations will be available on the website following the completion of the event.

About Anaplan

Anaplan, Inc. (NYSE: PLAN) is a cloud-native enterprise SaaS company helping global enterprises orchestrate business performance. Leaders across industries rely on our platform—powered by our proprietary Hyperblock® technology—to connect teams, systems, and insights from across their organizations to continuously adapt to change, transform how they operate, and reinvent value creation. Based in San Francisco, Anaplan has over 175 partners and more than 1,600 customers worldwide. To learn more, visit anaplan.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, including all statements other than statements of historical fact contained in this press release and includes, without limitation, statements about the company’s expectations regarding the impact of the COVID-19 pandemic and resulting global economic uncertainty, the quotations from management, statements regarding market demand, market opportunity, competitive position including of the company’s solutions compared to the offerings of competitors, use of the company’s solutions and the results of such use, statements about the company’s plans, strategies and prospects, statements about offerings, solutions, services and functionality, statements regarding growth and momentum, statements about customers’ plans and priorities, the financial outlook and guidance, which may include expected GAAP and non-GAAP financial and other results, for the company’s first fiscal quarter ending April 30, 2021 and for the full fiscal year ending January 31, 2022 and the underlying assumptions, and statements about events and trends including events and trends that we believe may affect our financial condition, results of operations, short- and long-term business operations and objectives, and financial needs. These statements identify prospective information and may include words such as “expects,” “intends,” “continue,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “should,” “may,” “will,” or the negative version of these words, variations of these words and comparable terminology. These forward-looking statements are based on information available to the company as of the date of this press release and are based on management’s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be beyond the company’s control and may pose a risk to the company’s operating and financial condition. Such risks and uncertainties include, but are not limited to: the ongoing COVID-19 pandemic, and resulting global economic downturn, has impacted how we, our customers, and our partners are operating, and could result in a material adverse effect on our business, financial condition, operating results and cash flows; we have a limited history of operating at our current scale and under our current strategy, which makes it difficult to predict our future operating results, and we may not achieve our expected operating results in the future; our recent revenue growth rates may not be indicative of our future growth; we have a history of net losses, we anticipate increasing our operating expenses in the future, and we do not expect to be profitable for the near future; our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business; we have experienced rapid growth and expect to continue to invest in our growth in the future, and if we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service, or adequately address competitive challenges and our business, financial condition and results of operations may be adversely affected; because we derive substantially all of our revenue from a single software platform, failure of Connected Planning solutions and digital transformation in general and our platform in particular to satisfy customer demands or to achieve increased market acceptance would adversely affect our business, results of operations, financial condition, and growth prospects; if we are unable to attract new customers, both domestically and internationally, the growth of our revenue will be adversely affected and our business may be harmed; our business depends substantially on our customers renewing their subscriptions and expanding their use of our platform and if we fail to achieve renewals and expansions or our customers renew or expand their subscriptions on less favorable terms, our business and operating results will be adversely affected; failure to effectively expand our sales and marketing capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our service; our growth depends in part on the success of our strategic relationships with third parties and their continued performance; the success of our business depends upon training our customers to effectively utilize our platform to unlock its full potential and our failure to effectively educate, train and provide continuing guidance and support to our customers may adversely affect our results of operations, financial condition and growth prospects; our ability to achieve growth in revenue will depend substantially on our partners being able to utilize highly skilled and trained users of our platform to provide professional services, promote the adoption of our platform and drive revenue generation activities and if we fail to effectively educate, train and provide continuing guidance to a sufficient number of qualified users of our platform for utilization with our partners, our results of operations, financial condition and growth prospects may be adversely affected; if we fail to continue to enhance our platform, satisfy the cloud infrastructure priorities of our clients or adapt to rapid technological change, our ability to remain competitive could be impaired; if we experience a security incident affecting our platform or internal networks, systems or data, or are perceived to have experienced such a security incident, our platform may be perceived as not being secure, our reputation may be harmed, customers may reduce the use of or stop using our platform, we may incur significant liabilities, and our business could be materially adversely affected; real or perceived errors, failures, bugs, service outages, or disruptions in our platform could adversely affect our reputation and harm our business; we depend on the experience and expertise of our senior management team and certain key employees, and our inability to retain these executive officers and key employees or recruit them in a timely manner, could harm our business, operating results, and financial condition; the markets in which we participate are intensely competitive, and if we do not compete effectively, our business and operating results could be adversely affected; we collect, process and store personal information and furthermore, our platform could be used by customers to do the same, and evolving domestic and international privacy and security laws, regulations and other obligations could result in additional costs and liabilities to us or inhibit sales of our platform. Furthermore, the additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may amplify many of these risks. Information concerning risks, uncertainties and other factors that could cause results to differ materially from the expectations described in this press release is contained in the company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its quarterly report on Form 10-Q filed with the SEC on December 3, 2020, and other documents the company may file with or furnish to the SEC from time to time such as annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. These forward-looking statements should not be relied upon as representing the company’s views as of any subsequent date and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made. The information contained in, or that can be accessed through, Anaplan’s website and social media channels are not part of this press release.

Preliminary Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended January 31,

Year Ended January 31,

(In thousands, except per share amounts)

2021

2020

2021

2020

Revenue:
Subscription revenue

$

112,551

$

89,512

$

408,199

$

307,890

Professional services revenue

9,974

8,730

39,556

40,132

Total revenue

122,525

98,242

447,755

348,022

Cost of revenue:
Cost of subscription revenue (1)

19,282

15,054

69,802

51,460

Cost of professional services revenue (1)

10,140

9,155

39,177

39,317

Total cost of revenue

29,422

24,209

108,979

90,777

Gross profit

93,103

74,033

338,776

257,245

Operating expenses:
Research and development (1)

27,537

20,433

100,523

68,396

Sales and marketing (1)

83,521

69,499

302,002

250,430

General and administrative (1)

23,516

21,694

90,030

86,852

Total operating expenses

134,574

111,626

492,555

405,678

Loss from operations

(41,471

)

(37,593

)

(153,779

)

(148,433

)

Interest income (expense), net

48

708

167

4,478

Other income (expense), net

351

1,287

3,736

(809

)

Loss before income taxes

(41,072

)

(35,598

)

(149,876

)

(144,764

)

Provision for income taxes

(977

)

(1,085

)

(4,091

)

(4,453

)

Net loss

$

(42,049

)

$

(36,683

)

$

(153,967

)

$

(149,217

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.29

)

$

(0.27

)

$

(1.10

)

$

(1.15

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

142,627

134,415

139,499

129,799

(1) Includes stock-based compensation expense as follows:
Cost of subscription revenue

$

1,285

$

730

$

3,822

$

2,547

Cost of professional services revenue

775

622

2,481

2,199

Research and development

5,454

3,488

18,715

10,608

Sales and marketing

14,396

10,700

48,210

34,428

General and administrative

7,284

7,192

30,398

30,264

Total stock-based compensation expense

$

29,194

$

22,732

$

103,626

$

80,046

Preliminary Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of

January 31,

January 31,

2021

2020

ASSETS
Current assets:
Cash and cash equivalents

$

320,990

$

309,894

Accounts receivable, net

147,005

109,217

Deferred commissions, current portion

36,797

25,990

Prepaid expenses and other current assets

24,252

17,814

Total current assets

529,044

462,915

Property and equipment, net

51,603

48,639

Deferred commissions, net of current portion

82,405

57,947

Goodwill

32,379

32,379

Operating lease right-of-use asset

33,985

37,875

Other noncurrent assets

9,709

10,052

TOTAL ASSETS

$

739,125

$

649,807

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$

7,949

$

5,331

Accrued expenses

101,507

79,024

Deferred revenue, current portion

287,778

216,059

Operating lease liabilities, current portion

7,951

7,278

Total current liabilities

405,185

307,692

Deferred revenue, net of current portion

7,765

4,149

Operating lease liabilities, net of current portion

30,130

34,017

Other noncurrent liabilities

18,032

12,268

TOTAL LIABILITIES

461,112

358,126

Stockholders’ equity:
Common stock

14

13

Accumulated other comprehensive loss

(7,528

)

(4,326

)

Additional paid-in capital

932,505

788,447

Accumulated deficit

(646,978

)

(492,453

)

TOTAL STOCKHOLDERS’ EQUITY

278,013

291,681

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

739,125

$

649,807

Preliminary Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Year Ended January 31,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss

$

(153,967

)

$

(149,217

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

25,831

20,341

Amortization of deferred commissions

33,404

20,508

Stock-based compensation

103,626

80,046

Reduction of operating lease right-of-use assets and accretion of operating lease liabilities

10,060

10,748

Foreign currency remeasurement gains

(4,178

)

(516

)

Other non-cash items

3,100

1,077

Changes in operating assets and liabilities:
Accounts receivable

(39,947

)

(16,313

)

Prepaid expenses and other current assets

(6,128

)

(4,266

)

Other noncurrent assets

(1,017

)

(1,419

)

Deferred commissions

(65,639

)

(53,978

)

Accounts payable and accrued expenses

21,163

19,550

Deferred revenue

71,751

67,478

Payments for operating lease liabilities, net

(9,252

)

(10,435

)

Other noncurrent liabilities

6,562

1,991

Net cash used in operating activities

(4,631

)

(14,405

)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment

(5,680

)

(3,991

)

Capitalized internal-use software

(10,063

)

(11,023

)

Business combinations, net of acquired cash

(33,492

)

Net cash used in investing activities

(15,743

)

(48,506

)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options

18,834

21,859

Proceeds from repayment of promissory notes

11,526

Proceeds from employee stock purchase plan

17,678

18,565

Principal payments on capital lease obligations

(8,680

)

(5,444

)

Net cash provided by financing activities

27,832

46,506

Effect of exchange rate changes on cash and cash equivalents

3,638

(564

)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

11,096

(16,969

)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – Beginning of period

309,894

326,863

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – End of period

$

320,990

$

309,894

Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages and per share amounts)
(Unaudited)

Three Months Ended January 31,

Year Ended January 31,

(In thousands, except percentages and per share amounts)

2021

2020

2021

2020

Revenue

$

122,525

$

98,242

$

447,755

$

348,022

GAAP operating loss

$

(41,471

)

$

(37,593

)

$

(153,779

)

$

(148,433

)

Stock-based compensation

29,194

22,732

103,626

80,046

Employer payroll tax expense related to employee stock plans

1,720

2,206

6,702

8,638

Business combination and other related cost

801

1,330

3,636

2,720

Amortization of acquired intangibles

335

335

1,340

482

Non-GAAP operating loss

$

(9,421

)

$

(10,990

)

$

(38,475

)

$

(56,547

)

GAAP operating margin %

-33.8

%

-38.3

%

-34.3

%

-42.7

%

Stock-based compensation %

23.8

%

23.1

%

23.1

%

23.0

%

Employer payroll tax expense related to employee stock plans %

1.4

%

2.2

%

1.5

%

2.5

%

Business combination and other related cost %

0.6

%

1.4

%

0.8

%

0.8

%

Amortization of acquired intangibles %

0.3

%

0.4

%

0.3

%

0.2

%

Non-GAAP operating margin %

-7.7

%

-11.2

%

-8.6

%

-16.2

%

GAAP net loss

$

(42,049

)

$

(36,683

)

$

(153,967

)

$

(149,217

)

Stock-based compensation

29,194

22,732

103,626

80,046

Employer payroll tax expense related to employee stock plans

1,720

2,206

6,702

8,638

Business combination and other related cost

801

1,330

3,636

2,720

Amortization of acquired intangibles

335

335

1,340

482

Non-GAAP tax adjustments

1,250

Non-GAAP net loss

$

(9,999

)

$

(10,080

)

$

(37,413

)

$

(57,331

)

GAAP net loss per share, basic and diluted

$

(0.29

)

$

(0.27

)

$

(1.10

)

$

(1.15

)

Stock-based compensation

0.20

0.17

0.74

0.62

Employer payroll tax expense related to employee stock plans

0.01

0.02

0.05

0.07

Business combination and other related cost

0.01

0.01

0.02

0.02

Amortization of acquired intangibles

0.01

Non-GAAP tax adjustments

0.01

Non-GAAP net loss per share

$

(0.07

)

$

(0.07

)

$

(0.27

)

$

(0.44

)

Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

142,627

134,415

139,499

129,799

Shares used to compute Non-GAAP net loss per share

142,627

134,415

139,499

129,799

GAAP net cash provided by (used in) operating activities

$

10,304

$

(1,571

)

$

(4,631

)

$

(14,405

)

Purchase of property and equipment

(437

)

(1,536

)

(5,680

)

(3,991

)

Capitalized internal-use software

(2,397

)

(3,002

)

(10,063

)

(11,023

)

Non-GAAP free cash flow

$

7,470

$

(6,109

)

$

(20,374

)

$

(29,419

)

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and free cash flow. The non-GAAP financial information is presented for supplemental informational purposes only, and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. The non-GAAP measures presented here may be different from similarly-titled non-GAAP measures used by other companies.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures, when viewed collectively with the GAAP measures, may be helpful to investors because they provide consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. The definitions of our non-GAAP measures may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may utilize metrics that are not similar to ours. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. Please see the reconciliation tables in this release for the reconciliation of GAAP and non-GAAP results.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.

Employer payroll tax expense related to employee stock plans. We exclude employer payroll tax expense related to employee stock plans, which is a cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of exercise or vesting, which may vary from period to period independent of the operating performance of our business.

Amortization of acquired intangible assets. We exclude amortization of acquired intangible assets, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of intangible assets are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

Business combinations and related cost. We exclude transaction, integration, and retention expenses that are directly related to business combinations from certain of our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information regarding operational performance.

Non-GAAP tax adjustments. We exclude discrete tax expenses associated with non-recurring intercompany transactions because we believe that excluding these items facilitate a comparison of the non-GAAP tax provision in the current and prior periods.

Free cash flow. Our management reviews cash flows generated from operations after taking into consideration capital expenditures such as purchase of property and equipment and internal-use software as these expenditures are considered to be a necessary component of ongoing operations. We define non-GAAP free cash flow as net cash provided by (used in) operating activities, reduced by purchase of property and equipment and capitalization of internal-use software.

Operating Metrics

Annual recurring revenue (ARR) is calculated as subscription revenue already booked and in backlog that will be recorded over the next 12 months, assuming any contract expiring in those 12 months is renewed and continues on its existing terms and at its prevailing rate of utilization.

Dollar-based Net Expansion Rate is calculated as the ARR at the end of a period for the base set of customers from which we had ARR in the year prior to the calculation, divided by the ARR one year prior to the date of calculation for that same customer base.

Investor Contact:

Edelita Tichepco

[email protected]

Media Contact:

Anthony Harrison

[email protected]