Here's What Key Metrics Tell Us About Model N (MODN) Q2 Earnings

For the quarter ended March 2024, Model N (MODN) reported revenue of $65.11 million, up 4% over the same period last year. EPS came in at $0.24, compared to $0.22 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $64.01 million, representing a surprise of +1.72%. The company delivered an EPS surprise of -7.69%, with the consensus EPS estimate being $0.26.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Model N performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenues- Subscription: $49.18 million compared to the $48.70 million average estimate based on five analysts. The reported number represents a change of +9.5% year over year.

• Revenues- Professional services: $15.93 million compared to the $15.30 million average estimate based on five analysts. The reported number represents a change of -9.9% year over year.

• Goss Profit- Subscription Non-GAAP: $33.98 million versus $33.47 million estimated by four analysts on average.

• Goss Profit- Professional Services Non-GAAP: $5.86 million versus the four-analyst average estimate of $5.80 million.

• Gross Profit- Subscription: $32.35 million versus $31.82 million estimated by three analysts on average.

• Gross Profit- Professional services: $4.89 million versus $4.53 million estimated by three analysts on average.

View all Key Company Metrics for Model N here>>>

Shares of Model N have returned +10% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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