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Spotting Winners: Sprout Social (NASDAQ:SPT) And Sales And Marketing Software Stocks In Q4


Radek Strnad /
2022/04/20 7:17 am EDT
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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Sprout Social (NASDAQ:SPT), and the best and worst performers in the sales and marketing software group.

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 23 sales and marketing software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.37%, while on average next quarter revenue guidance was just 0.05% above consensus. The whole tech sector has been facing a sell-off since late last year, but sales and marketing software stocks held their ground better than others, with share price down 4.48% since earnings, on average.

Sprout Social (NASDAQ:SPT)

Founded by Justyn Howard and Aaron Rankin in 2010, Sprout Social (NASDAQ:SPT) provides a software as a service platform that companies can use to schedule and respond to posts on major social media networks like Twitter, Facebook, Instagram, Youtube and LinkedIn.

Sprout Social reported revenues of $53.2 million, up 42.6% year on year, beating analyst expectations by 3.87%. It was a solid quarter for the company, with an exceptional revenue growth and a very optimistic guidance for the next quarter.

“We put emphatic finishing touches on a fantastic year for Sprout, as social remains mission critical to successful outcomes in the next evolution of business,” said Justyn Howard, Sprout Social’s CEO and co-founder.

Sprout Social Total Revenue

The stock is up 38% since the results and currently trades at $73.23.

We think Sprout Social is a good business, but is it a buy today? Read our full report here, it's free.

Best Q4: Sprinklr (NYSE:CXM)

Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.

Sprinklr reported revenues of $135.6 million, up 30.3% year on year, beating analyst expectations by 4.05%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and full year guidance beating analysts' expectations.

Sprinklr Total Revenue

Sprinklr delivered the highest full year guidance raise among its peers. The company added 2 enterprise customers paying more than $1m annually to a total of 82. The stock is up 22.8% since the results and currently trades at $13.97.

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

Weakest Q4: Yext (NYSE:YEXT)

Founded in 2006 by Howard Lerman, Yext (NYSE:YEXT) offers software as a service that helps their clients manage and monitor their online listings and customer reviews across all relevant databases, from Google Maps to Alexa or Siri.

Yext reported revenues of $100.9 million, up 9.47% year on year, missing analyst expectations by 0.1%. It was a weak quarter for the company, with slower customer growth and underwhelming guidance for the next year.

The stock is up 6.91% since the results and currently trades at $6.34.

Read our full analysis of Yext's results here.

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 $105.5 million, up 34.1% year on year, beating analyst expectations by 4.54%. It was a solid quarter for the company, with a strong top line growth and guidance for the next quarter above expectations.

The stock is up 1.47% since the results and currently trades at $24.03.

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

GoDaddy (NYSE:GDDY)

Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website.

GoDaddy reported revenues of $1.01 billion, up 16.6% year on year, beating analyst expectations by 4.74%. It was a weak quarter for the company, with the guidance for both the next quarter and the full year missing analyst estimates.

The stock is up 16.9% since the results and currently trades at $86.80.

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

The author has no position in any of the stocks mentioned