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Research Alert: S: Mixed Performance In Q1 And Light Guidance Weigh On Shares

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

S delivered mixed Q1 FY 27 results, with revenue of $276.7M growing 21% Y/Y, missing estimates by $0.77M, while non-GAAP EPS of $0.04 beat consensus by $0.02. ARR growth accelerated to 23% Y/Y reaching $1.163B, with $44M in net new ARR, though $100K+ customer growth decelerated to 17% from 18% in Q4. The company achieved a significant milestone, with emerging solutions representing 50% of total ARR, demonstrating successful platform expansion and diversification. Non-GAAP operating margin expanded 600 bps to 4%, showcasing the inherent operating leverage in the subscription-based model, while the company maintained a strong balance sheet, with $812M in cash and investments providing ample liquidity for continued innovation investments. Management raised its FY 27 non-GAAP operating income guidance by $5M to $115M-$125M but maintained the revenue outlook at $1.195B-$1.205B, suggesting some near-term headwinds. Q2 revenue guidance of $289M-$291M also came below consensus expectations of $292M.

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