Reflecting On Sales And Marketing Software Stocks’ Q4 Earnings: WalkMe (NASDAQ:WKME)
Anthony Lee 2023/04/19 5:09 am EDT
Looking back on sales and marketing software stocks' Q4 earnings, we examine 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 26 sales and marketing software stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.76%, while on average next quarter revenue guidance was 1.09% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but sales and marketing software stocks held their ground better than others, with the share prices up 4.95% since the previous earnings results, on average.
WalkMe (NASDAQ:WKME)
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 $64.9 million, up 21.8% year on year, beating analyst expectations by 1.34%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“WalkMe continues to help the largest companies in the world identify and resolve the crippling digital friction that’s keeping them from achieving their digital transformation goals. They’re relying on us to regain control of their tech stack and finally turn it into a competitive advantage,” said Dan Adika, CEO of WalkMe.
The stock is down 0.09% since the results and currently trades at $11.16.
Read our full report on WalkMe here, it's free.
Best Q4: 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 $1.73 billion, up 25.7% year on year, beating analyst expectations by 5.11%. It was a strong quarter for the company, with a decent beat of analyst estimates and solid revenue growth.
The stock is down 9.05% since the results and currently trades at $48.55.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it's free.
Weakest Q4: BigCommerce (NASDAQ:BIGC)
Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores.
BigCommerce reported revenues of $72.4 million, up 11.6% year on year, missing analyst expectations by 1.24%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
The stock is down 25% since the results and currently trades at $8.51.
Read our full analysis of BigCommerce's results here.
HubSpot (NYSE:HUBS)
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 $469.7 million, up 27.2% year on year, beating analyst expectations by 5.3%. It was a mixed quarter for the company, with a solid beat of analyst estimates but underwhelming guidance for the next year.
The company added 8,481 customers to a total of 167,386. The stock is up 14.9% since the results and currently trades at $417.06.
Read our full, actionable report on HubSpot here, it's free.
Momentive (NASDAQ:MNTV)
Previously known as SurveyMonkey, Momentive (NASDAQ:MNTV) offers software as a service that makes it easy for users create, manage and distribute online surveys.
Momentive reported revenues of $122.4 million, up 4.3% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a meaningful improvement in gross margin but slow revenue growth.
The company lost 10100 customers and ended up with a total of 887,400. The stock is up 19.1% since the results and currently trades at $9.34.
Momentive has agreed to be taken private by a consortium led by Symphony Technology Group (STG), in a transaction valued at approximately $1.5B.
Read our full, actionable report on Momentive here, it's free.
The author has no position in any of the stocks mentioned