Communications software specialist Broadsoft (NASDAQ:BSFT, news, filings) finished out its first (partial) year as a public company with an undeniably big fourth quarter. Revenues of $35.8M easily eclipsed both guidance and analyst estimates which were in the $31-32M range. Adjusted earnings per diluted share of $0.44 were at least a full dime above guidance and projections. Now that we have five quarters of data, here’s a table showing the company’s quarterly results in context:
|($ in millions)||Q4/09||Q1/10||Q2/10||Q3/10||Q4/10||Q1/11
|Cost of revenue||$3.9||$4.8||$5.1||$4.9||$5.3|
|Non-GAAP Earnings per share||0.07||(0.10)||(0.03)||0.08||$0.44||$0.04-0.11||$0.56-0.66|
The fourth quarter is seasonally large for BroadSoft, and hence forward guidance is for a sequential revenue decline in Q1 yet easily exceeds analyst projections of $24 for Q1 and $113M for the full year. Likewise, earnings per share guidance was above estimates.
If in fact ‘cloud communications’ manages to hitch its wagon to the cloud feeding frenzy, it seems like BroadSoft would be amongst the best positioned no matter which type of service provider actually finds the right combination for what type of enterprise customer.