Boston, MA 04/22/2014 (wallstreetpr) – Medidata Solutions Inc (NASDAQ:MDSO) went for a toss today after it reported first quarterly financial results, which were a big miss. During the early phase of the market session, the shares of the company nosedived more than 24%.
Numbers Decoded
In the first quarter, Medidata Solutions Inc (NASDAQ:MDSO)’s revenue stood at $76.6 million, which is 21% higher than its previous year’s revenue of $63.3 million. But, the analysts had expected $79.5 million of revenues during the quarter. The adjusted non-GAAP income for the reported quarter came in at $5.9 million, that is $0.11 per share, as against $9.1 million net income or $0.17 per share recorded in the previous year. The figure implies that the earnings per share also missed the target market consensus of $0.16 per share. One of the main highlights remained robust subscription revenue of $63.8 million, posting an increase of 26% over the last one year.
During the conference call, the company highlit some of the achievements that relate to the growth in its customer base by 88% over that of the last year’s. In the reported three months, Medidata Solutions Inc (NASDAQ:MDSO)’s customer base rose to 420 post addition of 32 new clients. At the close of the quarter, 52% of customers committed to multiple products, a ratio higher than 41% in the same period last year. The company’s flagship program, CRO, recorded impressive growth in the period and attracted three new partners including one of the top CRO. At the same time, a number of partners started using broader applications within its Clinical Cloud.
Another key point presented in the conference call was its total billings that were at $90 million in the quarter, indicating an increase of 43% year-over-year. Subscription backlog increased to $177 million as of March 31, 2014, implying a growth of $21 million year-over-year. Medidata Solutions Inc (NASDAQ:MDSO)’s overall revenue retention rate stayed at 100% in the said period.
On Track
At the end of the earnings call, the company’s Chief Financial Officer, Cory Douglas, reiterated that the company has started the year positively and is on its track to attain the financial outlook projected by it earlier this year. Douglas added that, for the remaining period of 2014, Medidata Solutions Inc (NASDAQ:MDSO) will take the route of disciplined investments to boost its long-term prospect to steer platform adoption and at the same time progressing on its growth trajectory.
