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PowerSchool Shares Rise After Q4 Earnings, Revenue Beats Estimates

Published 2022-03-04, 02:12 p/m
© Reuters
PWSC
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By Sam Boughedda

Investing.com -- Powerschool Holdings Inc (NYSE:PWSC) rose nearly 10% on Friday after the company released better-than-expected earnings for the fourth quarter.

Revenue came in at $146.1 million, above analysts' expectations of $141.19 million. The education technology software business said it was a "fantastic fourth quarter, exceeding the top ends of our guidance on both revenue and Adjusted EBITDA."

Earnings per share also beat expectations at 14 cents, compared to the 4 cents estimate.

The company's full-year revenue grew to $558.6 million, up 28.4% year-over-year. Its growth came after the company closed the year with nearly 1,500 cross-sell transactions, including a significant multi-district city Department of Education selecting its Special Programs solution in the fourth quarter. ​

"The record results for 2021 were underpinned by strong demand for our products as school districts rely on PowerSchool as a trusted strategic partner to navigate the ongoing digital transformation in education," said PowerSchool CEO Hardeep Gulati. 

The company sees first-quarter revenue between $145 million and $148 million. Furthermore, for 2022 revenues are estimated to be between $620 million and $626 million.

PowerSchool shares hit a high of $16.60 on Friday. Following the report, Macquarie raised its price target for PowerSchool from $24 to $25. 

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