Apigee Soars on Earnings Beat

By Chris Lange Updated Jan 13, 4:35PM EST · Published Dec 1, 4:44PM EST

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Apigee Soars on Earnings Beat — © Thinkstock

Apigee Corp. (NASDAQ: APIC) reported its fiscal first-quarter financial results after the markets closed on Tuesday. The API software platform maker had a net loss of $0.38 per share on $20.5 million in revenue, compared to consensus estimates from Thomson Reuters that called for a net loss of $0.41 per share on $19.81 million in revenue.

At the end of this quarter Apigee now does business in over 230 countries, compared to 165 at the end of the fiscal first quarter of 2015.

The company had a renewal rate that exceeded 90% in the fiscal first quarter, on a dollar-based, simple basis, for the second consecutive quarter.

In terms of guidance, the company expects to have a net loss per share in the range of $0.33 to $0.36 and revenue in the range of $21.2 million to $22.2 million for its fiscal second quarter. The consensus estimates call for a net loss of $0.35 per share on $21.55 million in revenue.

Chet Kapoor, Apigee CEO, commented on earnings:

We are pleased to deliver Q1 16 revenue, gross billings and non-GAAP operating loss exceeding our guidance ranges. Mobile devices and digital technologies continue to raise consumer expectations for real-time, interconnected and intelligent digital experiences. Apigee’s intelligent API platform is the foundation on which our customers – which include over 25 percent of the companies in the Fortune 100 – build and deliver these connected digital experiences to their customers, partners and employees. Our platform provides security, agility, scalability and reliability, which are required to accelerate digital business. It empowers enterprises to expand developer and partner ecosystems, spurring innovation internally and externally. In addition to our historical growth among retail and telco customers, we are building momentum in the financial services and healthcare verticals.

On the books, the company has $81.5 million in cash and cash equivalents, which is down sequentially from $89.6 million.

Shares of Apigee closed Tuesday down 1.7% at $7.00, with a consensus analyst price target of $18.67 and a 52-week trading range of $5.14 to $20.50. Following the release of the earnings report, shares jumped up over 13% at $7.96 in the after-hours trading session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.