As we reflect back on the just completed Q2 sales and marketing software sector earnings season, we dig into the relative performance of 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 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. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and sales and marketing software stocks have not been spared, with share prices down 11.2% since the previous earnings results, 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 $59.9 million, up 28% 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 missing analysts' expectations.
“Driving digital adoption of business workflows has never been more important for organizations across the globe in order to stay competitive and drive higher ROI in a challenging environment," said Dan Adika, CEO of WalkMe.
The stock is down 29.3% since the results and currently trades at $7.93.
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 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 slow revenue growth.
The stock is down 1.19% since the results and currently trades at $27.92.
Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.
Sprinklr reported revenues of $150.6 million, up 26.9% year on year, beating analyst expectations by 2.15%. It was a mixed quarter for the company, with solid revenue growth but underwhelming revenue guidance for the next quarter.
The company added 8 enterprise customers paying more than $1m annually to a total of 98. The stock is down 22.2% since the results and currently trades at $8.99.
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 9.04% year on year, inline with analyst expectations. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.
The stock is down 0.51% since the results and currently trades at $75.18.
The author has no position in any of the stocks mentioned