As Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers amongst the sales and marketing software stocks, including Momentive (NASDAQ:MNTV) and its peers.
The Internet and the exploding amount of data have transformed how businesses interact with, market to, and transact with their customers. Personalization of offerings, e-commerce, targeted advertising and data-empowered sales teams are now table stakes for modern businesses, and sales and marketing software providers are becoming the tools of evolving customer interaction.
The 24 sales and marketing software stocks we track reported a slower Q2; on average, revenues beat analyst consensus estimates by 1.69%, while on average next quarter revenue guidance was 1.23% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows and sales and marketing software stocks have not been spared, with share prices down 10.9% since the previous earnings results, on average.
Previously known as SurveyMonkey, Momentive (NASDAQ:MNTV) offers software as a service that makes it easy for users create, manage and distribute online surveys.
Momentive reported revenues of $120.1 million, up 9.84% year on year, missing analyst expectations by 1.01%. It was a weak quarter for the company, with guidance for both the next quarter and full year missing analysts' expectations.
“We are controlling our destiny in a more challenging macroeconomic environment, delivering value that enables us to retain and expand with our customers while managing the business prudently to drive operating leverage,” said Zander Lurie, Chief Executive Officer of Momentive.
The stock is down 42.5% since the results and currently trades at $4.93.
Is now the time to buy Momentive? Access our full analysis of the earnings results here, it's free.
Best Q2: DoubleVerify (NYSE:DV)
When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE: DV), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.
DoubleVerify reported revenues of $109.8 million, up 43.4% year on year, beating analyst expectations by 7.67%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
DoubleVerify delivered the strongest analyst estimates beat among its peers. The stock is up 14.4% since the results and currently trades at $27.35.
Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Shopify (NYSE:SHOP)
Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) provides a software platform for building and operating e-commerce businesses.
Shopify reported revenues of $1.29 billion, up 15.6% year on year, missing analyst expectations by 2.67%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.
The stock is down 3.17% since the results and currently trades at $27.36.
Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) provides software as a service that helps companies better target their marketing by merging offline and online data about their customers.
LiveRamp reported revenues of $142.2 million, up 19.4% year on year, beating analyst expectations by 2.35%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and decelerating customer growth.
The company added 3 enterprise customers paying more than $1m annually to a total of 90. The stock is down 35.7% since the results and currently trades at $18.
Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.
ON24 reported revenues of $48.2 million, down 7.45% year on year, beating analyst expectations by 2.03%. It was a weak quarter for the company, with a decline in revenue and an underwhelming revenue guidance for the next quarter.
ON24 had the weakest revenue numbers among the peers. The stock is down 14.5% since the results and currently trades at $8.8.
The author has no position in any of the stocks mentioned