March 9 (Reuters) - Qualtrics International on Tuesday forecast that revenue would beat analyst expectations in the current quarter and full-year. The Provo, Utah-based business software firm forecast revenue midpoints of $227 million for its current first quarter and $952 million for the full year. Those exceeded estimates of $223 million and $943.3 million, according to IBES data from Refinitiv. Businesses use Qualtrics software to solicit real-time feedback from customers and employees to improve products, services and workplaces. The company is controlled by German software giant SAP, which retained a controlling stake after Qualtrics raised $1.55 billion in an initial public offering in January. For the fourth quarter ended Dec. 31, Qualtrics said sales rose 24% from a year earlier to $213.6 million. The fourth-quarter results were toward the high end of the $211.5 million to $214.5 million range that the company told investors to expect during the run-up to its public offering in January, but below estimates of $216 million according to Refinitiv data. Qualtrics generated an adjusted net loss of 2 cents per share during the fourth-quarter, smaller than its net loss of 5 cents per share a year earlier. The company forecast net losses to continue for the full year of 2021 as it works to grow hit its revenue growth forecast of 34%. Because Qualtrics sells software on a subscription basis, that means it must spend money to acquire customers upfront, costs that it can later recoup over time as the customers pay monthly and annual subscription fees. “When you look at the subscription gross margins at 90%, for the annual period (of 2020), and then the overall gross margins of 76%, that allows us to then invest in the business,” Qualtrics Chief Financial Officer Rob Bachman said in an interview. (Reporting by Stephen Nellis in San Francisco; Editing by David Gregorio)
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