EVBG, KRNT and CRNC Report. Sell GSHD and CDLX
Everbridge (EVBG) reported Q1 2021 results today that beat on the top and bottom lines. Revenue was up 40% to $82.2 million (beating by $6.6 million) while adjusted EPS of $0.18 was up from a loss of -$0.16 a year ago and beat by $0.29. The stock has reacted well (up almost 10%), likely because there is a solid uptick in deals and demand not related to Covid, and average selling price is up. Deals worth over $500k doubled and deals worth $200K were up 60%. Management did talk about some deals expected in Q2 that were pulled into Q1 and that likely helped. But even so, there is a solid increase in activity, which is what we have been expecting/hoping for. Non-Covid related CEM deals grew by 11, to 139 total. With the stock up nicely today (granted from multi-month lows yesterday) there is reason for cautious optimism). We’ll stick with a buy rating for now and watch EVBG closely in the coming days. BUY
Kornit Digital (KRNT) reported this morning that Q1 revenue was up 152% to $66.1 million (beating by $3.4 million) and adjusted EPS rose to $0.16 (beating by $0.03) from a loss of -$0.22 a year ago. Cash from operations was $5.1 million versus cash burn of $13.1 million a year ago. Of course, Q1 last year was a disaster as the pandemic hit late in the quarter. But still, the company had a great quarter. Management pointed to the launch of its Max technology (MAX ATLAS now available for purchase) as expanding its market potential and talked about the continued strength in demand for on-demand solutions in the textile market. Given the turbulence in the market, investors are mostly focused on KRNT’s performance today than parsing details of the report (that will come later). So far, KRNT is trading down modestly, though shares are slightly below their March lows near 88 (stock traded as low as 84 and change earlier today). Taking it all in and considering the broad market’s action, I’m on the fence here. We’ll move to a hold rating and see how KRNT acts in the coming days. HOLD
Cerence (CRNC) reported that Q1 revenue rose by 14% to $98.7 million (beating by $5.3 million) while adjusted EPS of $0.69 beat by $0.17. Management also noted a few wins in the two-wheeler market and raised guidance. Full year fiscal 2021 revenue is now seen up 15% to 18% ($380 - $390 million), versus consensus of up 15% to $380 million. One would think there’s room to beat this guidance as well. With shares of CRNC thus far holding above support near 80 we’ll stick with it but maintain our hold rating for now. HOLD
Sell Notices
Over the last week shares of Cardlytics (CDLX) have turned south, and there’s been no support even after earnings. We have a gain of around 150% on our remaining stake. Let’s take it and put CDLX back on the watch list. SELL REMAINING THREE QUARTERS
Goosehead Insurance (GSHD) is another stock that’s reported and failed to hold support (near 95 – 100 in this case). We have a current gain of just over 200% on our remaining stake. Let’s lock it in. SELL REMAINING HALF