It has been about a month since the last earnings report for Model N, Inc. MODN. Shares have added about 4.8% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Model N reported second-quarter 2017 adjusted loss of $0.25 per share, which was wider than the year-ago quarter’s loss of $0.21.

However, including stock-based compensation, a loss of $0.34 per share was narrower than the Zacks Consensus Estimate of a loss of $0.35.

Revenues of $33.3 million increased 27.6% year over year but missed the Zacks Consensus Estimate of $34 million.

Quarter in Detail

Model N has two reportable segments namely License & Implementation and SaaS & Maintenance.

License & Implementation revenues (18% of total revenues) of $6 million grew 24.4% on a year-over-year basis. SaaS & Maintenance revenues (82% of total revenues) of $27.2 million grew 28.4% year over year.

The reported results showed that Model N remains on track to shift its business model to a 100% SaaS and Maintenance revenue model.

Model N’s revenue management platform continues to attract big players from the life sciences and high tech field.

Johnson & Johnson signed the second part of a major deal to implement revenue cloud in its pharmaceutical business. Teva, Pfizer and Novartis, among others, also signed new subscriptions for their U.S. business.

Model N added Otsuka as a customer during the quarter. The company now has over top 25 pharmaceutical companies as customers.

Recently, Intel – Model N’s long-time customer – bought a subscription for the company’s revenue cloud for High Tech.

Adjusted gross profit increased 58.9% year over year to $20 million while margin increased to 60.2% from 48.3%. Gross margin benefited from higher percentage of SaaS & Maintenance revenues.

Adjusted EBITDA was ($4.4) million compared with ($4.5) million in the year-ago quarter.

Adjusted operating expenses increased 52.5% year over year to $32.2 million. As a percentage of revenues, operating expenses increased to 96.9% from 81.1% in the year-ago quarter.

Adjusted operating loss was $7.9 million compared with a loss of $8.2 million in the year-ago quarter.

Balance Sheet

Model N exited the quarter with cash and cash equivalent balance of $53.6 million, up from $52.4 million at the end of first-quarter 2017. During the quarter, the company used $5.4 million of cash toward operational activities compared with $9 million in the previous quarter.