By Stephen Nellis
– Business software firm Qualtrics International on Wednesday raised its full-year sales forecast above analyst estimates as it reported third-quarter revenue and profits that also beat expectations.
The Utah-based company, whose software businesses solicit feedback from customers and employees to improve products, said it now forecasts full-year 2021 revenue with a midpoint of $1.057 billion, slightly ahead of analyst estimates of $1.012 billion, according to IBES data from Refinitiv.
The firm also forecast current fourth-quarter sales and adjusted losses with midpoints of $297 million and 3 cents per share, better than Wall Street estimates of $263.82 million and a 4-cent-per-share adjusted loss, according to Refinitiv data.
Qualtrics is controlled by German software giant SAP SE, which retained a controlling stake after Qualtrics raised $1.55 billion in an initial public offering in January.
Qualtrics is generating losses because it is investing heavily to acquire new customers. For the third quarter ended Sept. 30, Qualtrics said sales were $271.6 million, up 41%, and adjusted losses were 1 cent per share. The results beat analyst expectations of $258.19 million in sales and a 2-cent-per-share adjusted loss, according to Refinitiv data.
Businesses can use Qualtrics to survey their employees, which Chief Executive Zig Serafin said has led to sales growth this year as employers try to hang on to workers in a tight labor market.
In an interview, Serafin said food delivery firm DoorDash Inc recently expanded its use of Qualtrics “to tune in to the needs of their employees and their workforce, especially in the war for talent.”