As data analytics stocks’ Q2 earnings season wraps, let's dig into this quarter's best and worst performers, including Health Catalyst (NASDAQ:HCAT) and its peers.
Organizations generate a lot of data that is stored in silos, often in incompatible formats, making it slow and costly to extract actionable insights, which in turn drives demand for modern cloud-based data analysis platforms that can efficiently analyze the silo-ed data.
The 5 data analytics stocks we track reported a weaker Q2; on average, revenues beat analyst consensus estimates by 1.27%, while on average next quarter revenue guidance was 2.11% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and data analytics stocks have not been spared, with share prices down 17.6% since the previous earnings results, on average.
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 $73.2 million, up 3.65% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in its gross margin and underwhelming revenue guidance for the next quarter.
“For the second quarter of 2023, we are encouraged by our financial results, including total revenue of $73.2 million and Adjusted EBITDA of $3.5 million, with these results beating the mid-point of our quarterly guidance on each metric. Additionally, given that we are tracking slightly ahead of our previous full year revenue and Adjusted EBITDA guidance, we are raising our 2023 revenue and Adjusted EBITDA guidance. We are pleased with our strong first half bookings performance and continued pipeline growth. As a result, we are reiterating our full year 2023 bookings expectations, inclusive of dollar-based retention rate and net new DOS subscription client additions. We are also encouraged to have received multiple additional external recognitions related to our team member engagement once again this quarter,” said Dan Burton, CEO of Health Catalyst.
Health Catalyst delivered the slowest revenue growth of the whole group. The stock is down 30.4% since the results and currently trades at $9.01.Is now the time to buy Health Catalyst? Read our full report on Health Catalyst here.
Best Q2: Amplitude (NASDAQ:AMPL)
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.
Amplitude reported revenues of $67.8 million, up 16.6% year on year, beating analyst expectations by 1.31%. It was a solid quarter for the company, with a significant improvement in its gross margin and optimistic revenue guidance for the next quarter.
Amplitude scored the fastest revenue growth and highest full year guidance raise among its peers. The company added 169 customers to a total of 2,344. The stock is down 3.37% since the results and currently trades at $10.31.
Is now the time to buy Amplitude? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $79.7 million, up 5.48% year on year, in line with analyst expectations. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations. In addition, the company continued to burn cash.
The stock is down 45.8% since the results and currently trades at $9.23.
Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.
Palantir reported revenues of $533.3 million, up 12.7% year on year, missing analyst expectations by 0.1%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter. On the other hand, the company raised full year guidance for both revenue and adjusted operating income.
Palantir had the weakest performance against analyst estimates among the peers. The stock is down 1.42% since the results and currently trades at $17.73.
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 $188 million, up 4.08% year on year, beating analyst expectations by 3.34%. It was a weak quarter for the company, with ARR, revenue, and non-GAAP operating income guidance for next quarter all missing expectations.
Alteryx achieved the strongest analyst estimates beat but had the weakest full year guidance update among the peers. The stock is down 6.81% since the results and currently trades at $35.05.
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The author has no position in any of the stocks mentioned