As we reflect back on the just completed Q4 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 23 sales and marketing software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.68%, while on average next quarter revenue guidance was 0.03% above consensus. Tech stocks have been under pressure since the end of last year, but sales and marketing software stocks held their ground better than others, with share price down 2.82% since earnings, on average.
Founded in Israel in 2011, WalkMe (NASDAQ:WKME) is software that helps companies teach users how to get the most out of new applications.
WalkMe reported revenues of $53.2 million, up 36.9% year on year, beating analyst expectations by 2.34%. It was a good quarter for the company, with an optimistic guidance for the next year and a strong revenue growth.
“We completed 2021 with great momentum by accelerating our subscription revenue landing some great new logos and expanding within some of the largest organizations in the world. Digital adoption is being seen as a must have for CIOs and we are seeing the results with deeper strategic conversations and longer contract terms,” said Dan Adika, CEO of WalkMe.
The stock is down 12.9% since the results and currently trades at $14.80.
Is now the time to buy WalkMe? Access our full analysis of the earnings results 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 $127 million, up 31.8% year on year, beating analyst expectations by 7.58%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.
Sprinklr achieved the strongest analyst estimates beat among its peers. The company added 6 enterprise customers paying more than $1m annually to a total of 80. The stock is down 12.2% since the results and currently trades at $11.85.
Is now the time to buy Sprinklr? Access our full analysis of the earnings results here, it's free.
Slowest 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 slightly by 0.1%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
The stock is up 20% since the results and currently trades at $7.12.
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 analysts' expectations.
The stock is up 4.6% since the results and currently trades at $24.77.
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 revenue guidance below analysts' estimates.
The stock is up 10.6% since the results and currently trades at $82.13.
The author has no position in any of the stocks mentioned