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 Sprout Social (NASDAQ:SPT) and the rest of the sales and marketing software stocks fared in Q2.
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 26 sales and marketing software stocks we track reported a slower Q2; on average, revenues beat analyst consensus estimates by 1.83%, while on average next quarter revenue guidance was 1.25% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable and while some of the sales and marketing software stocks have fared somewhat better than others, they have not been spared, with share prices declining 9.17% since the previous earnings results, 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 $61.4 million, up 37.4% year on year, beating analyst expectations by 1.95%. It was a mixed quarter for the company, with an exceptional revenue growth but decelerating customer growth.
“We’re delighted to have delivered another strong quarter, again demonstrating the strengths of our team and market opportunity,” said Justyn Howard, Sprout Social’s CEO and co-founder.
The stock is up 11.6% since the results and currently trades at $58.06.
Is now the time to buy Sprout Social? 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 pulled off the strongest analyst estimates beat among its peers. The stock is up 18% since the results and currently trades at $28.21.
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 1.19% since the results and currently trades at $27.92.
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 declining revenue and an underwhelming revenue guidance for the next quarter.
ON24 had declining revenue among the peers. The stock is down 22.1% since the results and currently trades at $8.02.
Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software as a service platform that helps small and medium-size businesses sell, market themselves, and get found on the internet.
HubSpot reported revenues of $421.7 million, up 35.7% year on year, beating analyst expectations by 3.02%. It was a weaker quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.
The company added 7,176 customers to a total of 150,865. The stock is down 25.3% since the results and currently trades at $265.41.
The author has no position in any of the stocks mentioned