Cloud-based planning software provider Anaplan (NYSE: PLAN) recently reported its first-quarter results that failed to meet the market’s expectations on earnings. The company is focusing on expanding its vertical-focused offerings.

Anaplan’s Financials

Revenues for the quarter grew 25% to $129.8 million, ahead of the Street’s forecast of $127.08 million. Adjusted loss for the quarter was $0.10 per share, compared with the Street’s forecast of a loss of $0.09 per share.

By segment, subscription revenues grew 26% to $118.3 million and professional services revenues grew 14.6% to $11.5 million. Its dollar-based expansion rate was 118%.

Billings grew 32% over the year, and Anaplan exited the quarter with the remaining performance obligation balance of $832 million, growing 29% over the year. It is also seeing strong upsell growth. During the quarter, 64% of new bookings came from expand deals. This was slightly above its historical average of 60%. It now has 473 customers with ARR over $250,000.

Anaplan expects revenues between $133.5-$134.5 million, significantly higher than the Street’s estimates of $131.73 million. For fiscal 2022, Anaplan expects revenues between $555-$560 million, higher than the Street’s estimates of $553.25 million.

Anaplan’s Vertical Focus

During the quarter, Anaplan continued to expand its offerings across multiple verticals and added more partnerships. One key industry where it made an impact in the quarter was automotive. The adoption of mobility, autonomous driving, electrification and connectivity in the industry is leading to a need for real-time management of manufacturing and supply chain activities. Anaplan’s platform is able to cater to that demand. During the quarter, Anaplan added a large global auto supplier with over $40 billion in revenue as its customer, along with one of the world’s largest commercial vehicle manufacturers based in Europe.

The healthcare industry is also seeing a strong adoption of Anaplan where companies are using its platform to help improve the predictability of their business, deliver a better patient experience, and expand revenue opportunity.

Anaplan is also investing in upgrading its product offering. It has been working on a launch of Anaplan PlanIQ with Amazon Forecast which will leverage AI and ML capabilities to deliver advanced planning capabilities to its customers. It recently completed the early access program for PlanIQ which received positive customer feedback.

Anaplan announced that its CFO David H. Morton, Jr. will leave the organization later this year to spend more time with his family. It has initiated a search for its next CFO. The market did not take too kindly to the missed Q1 earnings and the exit of the CFO. Its stock fell 19% to $46.16 in the pre-market session. Its stock is currently trading at $49.37 with a market capitalization of $7.13 billion. It touched a 52-week high of $86.17 in February. The stock had fallen to a 52-week low of $41.51 in August last year.