As we reflect back on the just completed Q2 data and analytics software sector earnings season, we dig into the relative performance of Confluent (NASDAQ:CFLT) and its peers.
Data is the lifeblood of the internet and software in general, and its importance to businesses continues to accelerate. Tracking sensors, ubiquitous mobile devices, every action in every app are producing an explosion of analyzable data which increasingly gets stored in public cloud environments. But in order to be useful, the data needs to be moved around and analyzed. This drives demand for a variety of software solutions, from databases to analytics software, helping companies derive insights from this data to better understand customer preferences, supply chains, and forecast at ever more granular levels as a means of improving competitive advantage.
The 8 data and analytics software stocks we track reported a strong Q2; on average, revenues beat analyst consensus estimates by 8.51%, while on average next quarter revenue guidance was 4.85% above consensus. The market rewarded the results with the average return the day after earnings coming in at 6.08%.
Best Q2: Confluent (NASDAQ:CFLT)
Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.
Confluent reported revenues of $88.3 million, up 64% year on year, beating analyst expectations by 14.9%. It was an impressive quarter for the company, with a strong beat of analyst estimates and an exceptional revenue growth.
“Data within modern businesses is in constant motion, flowing across systems, environments, and applications each time a customer clicks, types or swipes,” said Jay Kreps, co-founder and CEO, Confluent.
Confluent achieved the strongest analyst estimates beat and highest full year guidance raise of the whole group. The stock is up 10.1% since the results and currently trades at $62.50.
Is now the time to buy Confluent? Access our full analysis of the earnings results here, it's free.
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $272.1 million, up 104% year on year, beating analyst expectations by 6.01%. It was a very strong quarter for the company, with an exceptional revenue growth and a significant improvement in gross margin.
Snowflake delivered the fastest revenue growth among its peers. The company added 12 enterprise customers paying more than $1m annually to a total of 116. The stock is up 7.63% since the results and currently trades at $302.77.
Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it's free.
Weakest Q2: C3.ai (NYSE:AI)
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
C3.ai reported revenues of $52.4 million, up 29.4% year on year, beating analyst expectations by 2.21%. It was a decent quarter for the company, with a strong top line growth but a decline in gross margin.
C3.ai had the weakest performance against analyst estimates in the group. The stock is down 10.3% since the results and currently trades at $45.31.
Started in 2007 by the team behind Google’s ad platform DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $198.7 million, up 43.7% year on year, beating analyst expectations by 7.9%. It was a strong quarter for the company, with an exceptional revenue growth.
The company added 69 enterprise customers paying more than $100,000 annually to a total of 1,126. The stock is up 26.1% since the results and currently trades at $470.
Founded in 2012 in the Netherlands, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.
Elastic reported revenues of $193 million, up 49.8% year on year, beating analyst expectations by 11.4%. It was a strong quarter for the company, with an impressive beat of analyst estimates.
Elastic had the weakest full year guidance update among the peers. The company added 50 enterprise customers paying more than $100,000 annually to a total of 780. The stock is down 3.18% since the results and currently trades at $150.96.
The author has no position in any of the stocks mentioned