As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the data and analytics software stocks, starting with Confluent (NASDAQ:CFLT).
Data is the lifeblood of the internet and software, and its importance to businesses continues to accelerate. Tracking sensors, ubiquitous mobile devices, and every action in every app are producing an explosion of analyzable data which increasingly gets stored in public cloud environments. This drives demand for a variety of software solutions, from databases to analytics software, which help companies derive actionable insights from the data to better understand customer preferences, supply chains, and forecast at ever more granular levels to improve their competitive advantage.
The 13 data and analytics software stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 3.95%, while on average next quarter revenue guidance was 0.46% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but data and analytics software stocks held their ground better than others, with the share prices up 3.77% since the previous earnings results, on average.
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 $151.7 million, up 47.9% year on year, beating analyst expectations by 4.76%. It was a solid quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.
“The data streaming era is here. The need for real-time data is pushing data streaming from the edges to the core of modern organizations,” said Jay Kreps, co-founder and CEO, Confluent.
The stock is down 6.89% since the results and currently trades at $20.80.
Is now the time to buy Confluent? Access our full analysis of the earnings results here, it's free.
Best Q3: Alteryx (NYSE:AYX)
Initially created as a way to organise census data for the government, Alteryx (NYSE:AYX) provides software that helps companies automate and analyse their internal data processes.
Alteryx reported revenues of $215.7 million, up 74.6% year on year, beating analyst expectations by 12.2%. It was an incredible quarter for the company, with an impressive beat of analyst estimates and very optimistic guidance for the next quarter.
Alteryx delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 44 customers to a total of 8,340. The stock is up 4.87% since the results and currently trades at $50.44.
Is now the time to buy Alteryx? Access our full analysis of the earnings results here, it's free.
Slowest Q3: 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 $62.4 million, up 7.11% year on year, beating analyst expectations by 2.61%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin.
The stock is up 10.7% since the results and currently trades at $13.25.
Read our full analysis of C3.ai's results here.
MongoDB (NASDAQ:MDB)
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 $333.6 million, up 47% year on year, beating analyst expectations by 9.56%. It was a strong quarter for the company, with an increase in gross margins and a very optimistic guidance for the next quarter.
MongoDB had the weakest full year guidance update among the peers. The company added 83 enterprise customers paying more than $100,000 annually to a total of 1,545. The stock is up 30.9% since the results and currently trades at $189.8.
Read our full, actionable report on MongoDB here, it's free.
Domo (NASDAQ:DOMO)
Founded by Josh James after selling his former business Omniture to Adobe, Domo (NASDAQ:DOMO) provides business intelligence software that allows managers to access and visualize critical business metrics in real-time, using their smartphones.
Domo reported revenues of $79 million, up 21.4% year on year, beating analyst expectations by 3.47%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.
The stock is down 15.9% since the results and currently trades at $12.51.
Read our full, actionable report on Domo here, it's free.
The author has no position in any of the stocks mentioned