ServiceSource International Inc (NASDAQ:SREV)
ServiceSource International, Inc.(SREV), a global leader in customer success and revenue lifecycle management solutions company yesterday reported their fiscal fourth quarter and full year 2016 financial results. ServiceSource reported a fourth quarter loss of $8.5 million. ServiceSource reported fourth quarter adjusted earnings of $0.02 per share. ServiceSource reported fourth quarter revenues of $68.7 million.
ServiceSource International, Inc. CEO’s Comments
“Our investments in 2016 in our people, platforms, and global Revenue Delivery Centers improved the results we delivered for our clients and helped us win 12 new logos last year. As we accelerate our digital transformation in 2017, we believe our solutions around customer success, inside sales, channel management, and renewals will drive even deeper value for new and existing clients. While we were strengthening our foundation with these investments, we also drove a 3 percentage point improvement to gross margin for the second year in a row and increased adjusted EBITDA by $11.5 million,” said Christopher M. Carrington, CEO of ServiceSource. “The foundation we built this past year will serve us well moving forward as we expand our offerings to help clients find, convert, grow, and retain revenue at all points along their customers’ journey.” Business Wire
SREV Technical Analysis
SREV opened trading yesterday at $5.80 which was down from the previous day’s trading close of $5.83. Shares closed trading yesterday at $6.05 and spiked down after market to $4.66, equivalent to a 23% decrease from the closing price. Taking a look at the daily chart we can see that the last time SREV traded below these levels we have to go all the way back to November 7th, 2016 when it traded at $4.65.
Taking a closer look at the daily chart we can see that before the spike down SREV had been in an overall upward trend dating back to November 4th, 2016 when it traded at $4.43. SREV has a float of 51.3 million shares and traded 3.60 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see SREV open trading on Wednesday below $5.10 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
ServiceSource International, Inc. provides recurring revenue management, maintenance, support, and subscription for technology and technology-enabled healthcare and life sciences companies. The company operates in two segments: Managed Services, and Cloud and Business Intelligence. It offers end-to-end management and optimization of the service-contract renewals process, including data management, quoting, selling, and recurring revenue business intelligence.
The company provides ServiceSource Revenue Analytics, a revenue lifecycle management platform that helps subscription-based businesses to execute processes across on-boarding and adoption, up-sell and cross-sell, and retention and renewals throughout the revenue lifecycle; and Renew OnDemand, a cloud application, which offers customers with an unified view of the data from various sources and leverages a data warehouse of transactional, analytical, and industry information.
It also provides ServiceSource Customer Success, a customer success management solution that enables customer to profile various stages of the customer lifecycle; and managed services comprising service performance analysis, business case, pricing and contract structuring, recurring revenue performance, customer benchmarking and continuous improvement, and developing and delivering applications. The company sells its solutions through sales organization worldwide. ServiceSource International, Inc. was founded in 2002 and is headquartered in San Francisco, California.