5723

Q2 Earnings Outperformers: Confluent (NASDAQ:CFLT) And The Rest Of The Data and Analytics Software Stocks


Jack Winthrop /
2022/09/30 4:35 am EDT
Add to Watchlist

The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Confluent (NASDAQ:CFLT) and the rest of the data and analytics software stocks fared in Q2.

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 Q2; on average, revenues beat analyst consensus estimates by 3.83%, while on average next quarter revenue guidance was 1.91% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 and data and analytics software stocks have not been spared, with share price down 17.7% 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 $139.4 million, up 57.8% year on year, beating analyst expectations by 5.71%. It was a strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.

“Data streaming is a requirement to create the real-time digital experiences and efficient operations that are needed to compete and win,” said Jay Kreps, co-founder and CEO, Confluent.

Confluent Total Revenue

The stock is down 18.9% since the results and currently trades at $23.50.

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

Best Q2: 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 $180.6 million, up 50.4% 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 a very optimistic guidance for the next quarter.

Alteryx Total Revenue

Alteryx delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 101 customers to a total of 8,296. The stock is up 13.1% since the results and currently trades at $57.28.

Is now the time to buy Alteryx? 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 $65.3 million, up 24.6% year on year, missing analyst expectations by 1.08%. It was a weak quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.

C3.ai had the weakest full year guidance update in the group. The stock is down 29.6% since the results and currently trades at $12.65.

Read our full analysis of C3.ai's results here.

Health Catalyst (NASDAQ:HCAT)

Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ:HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs.

Health Catalyst reported revenues of $70.6 million, up 18.4% year on year, beating analyst expectations by 1.08%. It was a weak quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.

The stock is down 44% since the results and currently trades at $10.17.

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

DigitalOcean (NYSE:DOCN)

Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium sized businesses to host applications and data in the cloud.

DigitalOcean reported revenues of $133.8 million, up 28.9% year on year, missing analyst expectations by 0.44%. It was a slower quarter for the company, with a decline in net revenue retention rate and a miss of the top line analyst estimates.

The stock is down 23.5% since the results and currently trades at $36.58.

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

The author has no position in any of the stocks mentioned