As sales and marketing software stocks’ Q1 earnings season wraps, let's dig into this quarter’s best and worst performers, including WalkMe (NASDAQ:WKME) 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 23 sales and marketing software stocks we track reported a weak Q1; on average, revenues beat analyst consensus estimates by 2.48%, while on average next quarter revenue guidance was 0.04% under consensus. There has been a stampede out of high valuation technology stocks, but sales and marketing software stocks held their ground better than others, with share price down 5.37% since earnings, on average.
Founded in Israel in 2011, WalkMe (NASDAQ:WKME) is software that teaches users how to get the most out of new applications.
WalkMe reported revenues of $56.8 million, up 33.2% year on year, beating analyst expectations by 1.33%. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter.
“In the first quarter the market trends of driving businesses forward through digital transformation continued to accelerate,” said Dan Adika, CEO of WalkMe.
The stock is down 26.3% since the results and currently trades at $9.01.
Best Q1: 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 $96.7 million, up 43.1% year on year, beating analyst expectations by 7.58%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
DoubleVerify scored the strongest analyst estimates beat among its peers. The stock is up 29.7% since the results and currently trades at $23.71.
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Weakest Q1: ON24 (NYSE:ONTF)
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 $48.4 million, down 3.21% year on year, beating analyst expectations by 1.88%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and a slow revenue growth.
ON24 had the slowest revenue growth and weakest full year guidance update in the group. The stock is down 8.35% since the results and currently trades at $9.87.
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 $98.8 million, up 7.4% year on year, beating analyst expectations by 1.58%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and a slow revenue growth.
The company added 130 customers to a total of 2,830. The stock is down 12.4% since the results and currently trades at $4.73.
Founded in 2006, as an online ad platform focused on ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.
PubMatic reported revenues of $54.5 million, up 25% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year below analysts' estimates.
PubMatic had the weakest performance against analyst estimates among the peers. The stock is down 15.7% since the results and currently trades at $16.
The author has no position in any of the stocks mentioned