Why Anaplan's Recent Slide Is a Buying Opportunity
After the share-price pullback that followed the release of its fiscal fourth-quarter earnings report, Anaplan's (NYSE: PLAN) stock price is now trading more than 20% below its recent all-time high. And notably, after a year of ups and downs, the software-as-a-service company's shares are fairly close to where they were trading in early February 2020, when worries were starting to build on Wall Street that this "novel coronavirus" might become a real global problem.
However, in that span of time, Anaplan has overcome some big challenges and continued to grow at a fast pace -- even as many of its potential customers have hit the pause button on spending for new software. If you can stomach the oscillations (and buy more on dips like the current one), this SaaS stock is a solid long-term value.
In Anaplan's fiscal 2021 fourth quarter (which ended Jan. 31), its revenue increased 25% year over year to $123 million -- well above the outlook that management provided a few months ago. It also turned the corner on profitability in an important metric during the quarter, generating $7.5 million in free cash flow.
Source Fool.com
