Csquare (NYSE:CSQR) Issues Quarterly Earnings Results

Csquare (NYSE:CSQR) announced its quarterly earnings data on Monday. The company reported ($0.58) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.49) by ($0.09), FiscalAI reports. The firm had revenue of $302.33 million during the quarter. During the same period last year, the firm earned ($0.29) EPS. The firm’s quarterly revenue was up 25.6% compared to the same quarter last year.

Here are the key takeaways from Csquare’s conference call:

• Revenue rose 25.6% year over year to $302.3 million, while adjusted EBITDA increased 44.3% to $132.1 million and its margin expanded to 47.8%. The company expects full-year revenue of $1.14 billion–$1.16 billion and adjusted EBITDA of $490 million–$500 million.
• Annualized bookings reached $66.1 million, the 14th consecutive quarter of sequential growth, and annualized revenue backlog grew to about $114 million. About $104 million is expected to commence over the next 12 months, providing visibility into future revenue.
• Pricing remained strong, with renewal spreads at 17%—though management said the rate excluding a significant large-customer renewal was about 8%—and net revenue churn was 1.9%. Management expects pricing to remain favorable, citing customer demand and legacy contracts still below market rates.
• Leverage was approximately 8.4x, above the company’s 6x–7x target, and planned full-year growth CapEx is $620 million–$640 million. The quarter also included a GAAP net loss of $88.1 million, driven largely by IPO-related and compensation costs; management says backlog conversion and EBITDA growth should support deleveraging.

Csquare Price Performance

Shares of CSQR traded up $0.21 during trading hours on Wednesday, hitting $17.73. The stock had a trading volume of 204,819 shares, compared to its average volume of 1,691,384. The business’s 50-day moving average is $16.64. Csquare has a fifty-two week low of $12.30 and a fifty-two week high of $23.50.

Key Csquare News

Here’s some of the latest news about CSQR:

• Positive Sentiment: Third-quarter revenue grew 25.6% year over year to $302.3 million, topping the cited $287.1 million estimate. Csquare also reported record bookings of $66.1 million and its 14th consecutive quarter of sequential bookings growth. Csquare Q3 results
• Positive Sentiment: TD Cowen raised its price target from $28 to $30 and reiterated a Buy rating, signaling increased analyst optimism. TD Cowen recommendations
• Neutral Sentiment: Csquare is seeking acquisitions, which could support expansion but may also bring execution and financing considerations; details were not provided in the report. Csquare seeks acquisitions

Wall Street Analyst Weigh In

CSQR has been the topic of a number of recent research reports. Morgan Stanley started coverage on Csquare in a research report on Monday, August 10th. They issued an “overweight” rating and a $26.00 target price on the stock. BMO Capital Markets began coverage on shares of Csquare in a research report on Monday, August 10th. They set an “outperform” rating and a $26.00 price target for the company. Wells Fargo & Company began coverage on shares of Csquare in a research report on Monday, August 10th. They set an “overweight” rating and a $25.00 price target for the company. Zacks Research upgraded shares of Csquare to a “hold” rating in a research note on Thursday, August 20th. Finally, Scotiabank raised shares of Csquare to a “strong-buy” rating in a report on Wednesday, August 19th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $28.78.

Hedge Funds Weigh In On Csquare

A hedge fund recently bought a new stake in Csquare stock. Voya Investment Management LLC bought a new position in shares of Csquare, Inc. (NYSE:CSQR) in the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor bought 10,394 shares of the company’s stock, valued at approximately $164,000.

Csquare Company Profile

Csquare Inc. is a provider of carrier-neutral data center solutions. The company’s digital infrastructure platform offers carrier-neutral colocation and interconnection services which support the applications. Csquare Inc. is based in COPPELL, Texas.