Beat on’s earnings, CEO moves work-from-home trend to ‘stay here’ Holdings Inc. Chief Executive of René Lacarte is optimistic that the COVID-19 crisis will bring a long-term shift towards work that increases demand for digital accounting tools.
The company saw signs of those trends in the fourth quarter of the recently ended fiscal year, as it added 6,700 net new customers, which led to a greater need to manage billing operations remotely during the epidemic. Bill,
+ 2.97%
Targeting small and medium-sized businesses through software products is to replace many of the manual processes involved in traditional corporate accounting.

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Lacarte hopes that working from home is “here to stay” and that Dynamics inspires small business customers to try out’s offerings because their back-office teams can’t make it in the workplace because The epidemic will continue even after the crisis. It is over.

“We’re seeing that COVID has been an accelerator of how people think about their work,” he told Marketwatch.
Lacarte said the challenges with the US Postal Service could also be something that businesses are thinking about, given that he grew up in an entrepreneurial family and knows that businesses running “pay suppliers on time” Worry about doing. ” Postal cuts have been delayed due to cost reductions in the postal service.
Although topped revenue and earnings expectations for its latest quarter, the shares closed nearly 4% in after-hours trading.
The company reported fiscal fourth-quarter revenue of $ 42.1 million, up from $ 31.7 million a year earlier and ahead of FactSet’s consensus, which called for $ 38 million. posted a total loss of $ 9.5 million, or 13 cents per share, while a loss of $ 4.5 million, or 56 cents per share, compared to the year-ago quarter. On an adjusted basis, lost 2 cents per share with a loss of 2 cents per share a year earlier. Analysts polled by FactSet modeled an adjusted loss of 11 cents per share.
Jefferies analyst Samad Samana was recognized by the company as revenue with financial institutions due to disclosure of the remaining performance obligations of $ 152 million. It was upwards of $ 44 million in the March quarter, and while much of the increase in performance obligations is expected to be recognized over a year, Samana said in a note to customers that traction here was “new and recent representatives” Are expanded with major [financial institutions]. ” highlighted its earnings and issued an extended agreement with one of the top three small-business banks in the US “to say this is going to be the default solution for payments, for them this commitment is important to us Is, ”Lacarte told Marketwatch.
He added that the increase in performance obligations is “a testament to the platforms we build and the ability for trust partners to digitally transform their lives.”
Samana also highlighted the company’s annual customer retention rate of 82%, in line with the company’s March rate. “This impressive result put an end to high churn fears and demonstrated the stickiness of’s solutions with end customers,” he wrote, while maintaining a rating but lowering his price target from $ 98 to $ 110 extent to.
The shares have gained 65% in the last three months as the S&P 500 SPX,
+ 0.16%
Has increased by 15%.


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