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Stock Alert: Medallia Down 25% After Quarterly Results

Shares of experience management company Medallia, Inc. (MDLA) are down more than 25% Friday morning at $28.02. Thursday after the bell, the company had reported wider net loss for the fourth quarter.

Net loss for the quarter was $48.8 million, or $0.32 per share, compared with net loss of $31.9 million, or $0.25 per share, in the same period last year.

Excluding items, adjusted loss was $0.01 per share, that met the average estimate of analysts polled by Thomson Reuters at $0.01 loss per share.

Total revenue for the quarter was $128.0 million, an increase of 16% from the same period last year.

Looking forward, the company sees revenue of $126 million to $128 million for the first quarter, and  $563 million to $567 million for the full year. Analysts expect revenue of $128.52 in the first quarter and $554.79 million for the full-year.

Separately, Medallia announced its decision to buy Decibel, a digital experience analytics company, for about $160 million in cash.

"There has been a massive shift to digital and the Decibel acquisition will add vital digital journey and experience capabilities, providing even more value to our customers and prospects. The addition of Decibel uniquely positions Medallia as the only experience vendor that brings together the physical world, contact center and digital in a single signal platform. Our digital investments mark us out as the feedback system of record that makes all other systems customer aware," stated Leslie Stretch, chief executive officer of Medallia.

The acquisition is expected to close in March 2021.

MDLA has been trading in the range of $160.4- $48.28 in the last one year.

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