Marketo Earnings: Here’s Why the Stock is Rising Now

Marketo Inc (NASDAQ:MKTO) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.31%.

Marketo Inc Earnings Cheat Sheet

Results:

Revenue: Decreased 0% to $22.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS loss of $0.49 per share. By that measure, the company missed the mean analyst estimate of $0. It beat the average revenue estimate of $0.

Quoting Management: “We are delighted to report outstanding revenue and customer growth in our first quarter as a public company,” commented Phil Fernandez, President and CEO of Marketo. “In the second quarter of 2013, we hit on all cylinders across the key elements of our growth strategy, and we’re very satisfied with the fundamentals of our business. Our success in the quarter continues to validate that customers in this big and fast growing category want to do business with an innovator that is solely focused on building the industry’s best marketing platform.”

Key Stats (on next page)…

Revenue increased 13.98% from $19.74 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0 to a loss $0.47. For the current year, the average estimate has moved down from a loss of $0 to a loss of $1.47 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)