Qualtrics’ shares rose over 4% Friday in premarket trading after it reported better than expected Q1 revenues and gave a optimistic Q2 revenue forecast.

XM Q1 revenues of $335.6 Million, an increase of 41% YoY. This is higher than the consensus estimate of $325.6 millions. The loss per share was 51c during the period.

Qualtrics projects Q2 revenue to be between $344 million and $346 million. This is higher than the analysts’ expectations of $337.4 millions. XM projects Q2 EPS to be in the range of -1c-+1c, compared against the estimates at 0.3c.

For the full year, Qualtrics anticipates revenue to be around $1.43 billion, compared to analyst expectations of $1.41 billion and the company’s previous outlook of $1.40 billion to $1.41 billion.

Morgan Stanley analyst Keith Weiss lowered the price target to $43.00 per share from $54.00, although she remains positive on XM after the company delivered results that are “never more relevant than in uncertain times.”

“XM delivered a Q1 revenue beat & Q2/FY22 raise in the face of demand concerns from an uncertain macro environment. Solid billings growth, NRR stabilizing at record highs & sustained demand as customers look for insight to navigate uncertain times provides confidence in outperformance vs FY22 targets,” Weiss said in a client note.

BofA analyst Adam Bergere reduced the PT by $34.00 per Share from $40.00 in order to account for the lower multiple. The analyst saw a “solid beat and raise” fueled by impressive execution.

“We were impressed with the Q1 results, full year guidance raise, and the company’s positive tone on the current demand environment despite some disruption in Europe (“a few customers in Europe who were hesitant to pull the trigger on deals and delayed into the following quarter”). Q1 results confirm our view that Qualtrics carries a leadership position in a large TAM (total addressable market) and continues to take share,” the analyst wrote in a memo.

Similarly to Raymond James analyst Brian Peterson, he also reflected positively upon XM.

“With a ramping product portfolio and key partnership opportunities, we believe that XM will remain on a 30% growth trajectory for the foreseeable future, which isn’t reflected in shares at 8x (vs. the 30%+ growth group at 10x).”

By Senad Karaahmetovic