As Q2 earnings season comes to a close, it’s time to take stock of this quarters’ best and worst performers amongst the data and analytics software stocks, including Health Catalyst (NASDAQ:HCAT) and its peers.
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 8 data and analytics software stocks we track reported a a strong Q2; on average, revenues beat analyst consensus estimates by 6.86%, while on average next quarter revenue guidance was 3.58% above consensus. The market rewarded the results with the average return the day after earnings coming in at 4.2%.
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 $59.6 million, up 37.8% year on year, beating analyst expectations by 5.09%. It was a solid quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
“In the second quarter of 2021, I am pleased to share that we achieved strong performance across our business, including exceeding the mid-point of our quarterly guidance for both revenue and Adjusted EBITDA. Our second quarter 2021 Adjusted EBITDA performance of $1.7 million represents the first time since the company’s incorporation that we have achieved positive quarterly Adjusted EBITDA,” said Dan Burton, CEO of Health Catalyst.
The stock is down 16.5% since the results and currently trades at $47.38.
Is now the time to buy Health Catalyst? Access our full analysis of the earnings results here, it's free.
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 exceptional quarter for the company, with an impressive beat of analyst estimates and a very strong revenue growth.
Confluent achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 65% since the results and currently trades at $66.45.
Is now the time to buy Confluent? 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 and weakest full year guidance update in the group. The stock is down 11.1% since the results and currently trades at $47.17.
Read our full analysis of C3.ai's results here.
Elastic (NYSE:ESTC)
Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, 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.
The company added 50 enterprise customers paying more than $100,000 annually to a total of 780. The stock is up 7.16% since the results and currently trades at $169.51.
Read our full, actionable report on Elastic here, it's free.
Domo (NASDAQ:DOMO)
Founded by Josh James after selling his former business Omniture to Adobe, 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 $62.8 million, up 22.8% year on year, beating analyst expectations by 3.22%. It was a decent quarter for the company, with a decent beat of analyst estimates.
Domo had the slowest revenue growth among the peers. The stock is down 10.5% since the results and currently trades at $87.53.
Read our full, actionable report on Domo here, it's free.
The author has no position in any of the stocks mentioned