326378

Sales And Marketing Software Stocks Q1 In Review: Braze (NASDAQ:BRZE) Vs Peers


Jabin Bastian /
2024/07/04 7:43 am EDT

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the sales and marketing software stocks, including 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 23 sales and marketing software stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 2.3%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and sales and marketing software stocks have held roughly steady amidst all this, with share prices up 0.9% on average since the previous 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 $135.5 million, up 33.1% year on year, topping analysts' expectations by 2.9%. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and accelerating customer growth.

“We are off to a solid start in fiscal 2025, delivering strong results in an uneven macro, driven by returns from our long-term investments and consistent execution,” said Bill Magnuson, cofounder and CEO of Braze.

Braze Total Revenue

The stock is up 6% since the results and currently trades at $39.03.

Is now the time to buy Braze? Access our full analysis of the earnings results here, it's free.

Best Q1: AppLovin (NASDAQ:APP)

Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers.

AppLovin reported revenues of $1.06 billion, up 47.9% year on year, outperforming analysts' expectations by 8.6%. It was an exceptional quarter for the company: AppLovin blew past analysts' revenue and adjusted EBITDA expectations.

AppLovin Total Revenue

AppLovin delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 17.4% since the results and currently trades at $86.96.

Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Sprout Social (NASDAQ:SPT)

Founded by Justyn Howard and Aaron Rankin in 2010, Sprout Social (NASDAQ:SPT) provides a software as a service platform that companies can use to schedule and respond to posts on major social media networks like Twitter, Facebook, Instagram, Youtube and LinkedIn.

Sprout Social reported revenues of $96.78 million, up 28.7% year on year, falling short of analysts' expectations by 0.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' billings estimates.

Sprout Social had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company added 134 enterprise customers paying more than $10,000 annually to reach a total of 8,823. The stock is down 25% since the results and currently trades at $36.11.

Read our full analysis of Sprout Social's results here.

Sprinklr (NYSE:CXM)

Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.

Sprinklr reported revenues of $196 million, up 13% year on year, in line with analysts' expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

The company added 12 enterprise customers paying more than $1m annually to reach a total of 138. The stock is down 7.3% since the results and currently trades at $10.05.

Read our full, actionable report on Sprinklr here, it's free.

ON24 (NYSE:ONTF)

Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.

ON24 reported revenues of $37.73 million, down 12.4% year on year, surpassing analysts' expectations by 2%. It was a decent quarter for the company, with a solid beat of analysts' billings estimates but a decline in its gross margin.

ON24 had the slowest revenue growth among its peers. The stock is down 12.1% since the results and currently trades at $5.94.

Read our full, actionable report on ON24 here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.