Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Braze (NASDAQ:BRZE) and its peers.
The Internet and the exploding amount of data have transformed how businesses interact with, market to, and transact with their customers. Personalization of offerings, e-commerce, targeted advertising and data-empowered sales teams are now table stakes for modern businesses, and sales and marketing software providers are becoming the tools of evolving customer interaction.
The 21 sales and marketing software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 0.6% above.
Luckily, sales and marketing software stocks have performed well with share prices up 10.5% on average since the latest earnings results.
Braze (NASDAQ:BRZE)
Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.
Braze reported revenues of $152.1 million, up 22.7% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
“We continued to execute in the third quarter, delivering strong revenue growth and operating leverage while maintaining steady investment in our product, our ecosystem, and our go-to-market motion to continue positioning Braze as the leading cross-channel customer engagement platform,” said Bill Magnuson, Cofounder and CEO of Braze.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $42.01.
Is now the time to buy Braze? Access our full analysis of the earnings results here, it’s free.
Best Q3: Yext (NYSE:YEXT)
Founded in 2006 by Howard Lerman, Yext (NYSE:YEXT) offers software as a service that helps their clients manage and monitor their online listings and customer reviews across all relevant databases, from Google Maps to Alexa or Siri.
Yext reported revenues of $114 million, up 12.7% year on year, outperforming analysts’ expectations by 0.7%. The business had a very strong quarter with a solid beat of analysts’ annual recurring revenue estimates and an impressive beat of analysts’ billings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 22.1% since reporting. It currently trades at $6.63.
Is now the time to buy Yext? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: DoubleVerify (NYSE:DV)
When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE:DV), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.
DoubleVerify reported revenues of $169.6 million, up 17.8% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
DoubleVerify delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 2.7% since the results and currently trades at $20.10.
Read our full analysis of DoubleVerify’s results here.
Freshworks (NASDAQ:FRSH)
Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses.
Freshworks reported revenues of $186.6 million, up 21.5% year on year. This result surpassed analysts’ expectations by 2.7%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ annual recurring revenue estimates and an impressive beat of analysts’ EBITDA estimates.
The company added 615 enterprise customers paying more than $5,000 annually to reach a total of 22,359. The stock is up 26.9% since reporting and currently trades at $16.61.
Read our full, actionable report on Freshworks here, it’s free.
Wix (NASDAQ:WIX)
Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.
Wix reported revenues of $444.7 million, up 12.9% year on year. This result was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also put up a decent beat of analysts’ EBITDA estimates.
The stock is up 21.9% since reporting and currently trades at $224.01.
Read our full, actionable report on Wix here, it’s free.
Market Update
In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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