Needham & Company Raises Price Target on Xactly Corporation (XTLY) Following Solid 1Q Results

Needham & Company reiterated a Buy rating on Xactly Corporation (NYSE: XTLY), and raised the price target to $15.00 (from $13.00), following the company's 1Q earnings report. XTLY reported Revenues of $23.3mm, ahead of Needham's $21.9mm estimate. EPS of ($0.09) also beat Needham's estimate of ($0.15).

Analyst Scott Berg commented, "Xactly reported solid 1Q results, with upside to revenue, EPS, and billings on stronger than expected deal flow. We believe the reported billings strength highlight XTLY's current strong execution, ARPU growth, and overall demand trends, even with losing a larger customer in 1Q. With pipeline activity at the highest in history and new international expansion into APAC and LatAm, the 1Q sales strength continues to make us more comfortable with XTLY's ability to grow revenues at a high 20% level into FY18 at a minimum. We believe a compelling underlying trend is on the ARPU and ASP side as XTLY continues to expand its platform to drive larger initial sales and a longer upsell opportunity. We raise our PT to $15 to reflect our view on growth in FY18 and improved visibility into getting operating cash flow positive in 4Q17."

For an analyst ratings summary and ratings history on XACTLY Corp click here. For more ratings news on XACTLY Corp click here.

Shares of XACTLY Corp closed at $10.50 yesterday.

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