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A Look Back at Sales And Marketing Software Stocks' Q1 Earnings: Qualtrics (NASDAQ:XM) Vs The Rest Of The Pack


Jabin Bastian /
2022/07/18 5:28 am EDT
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Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q1 now behind us, let’s have a look at Qualtrics (NASDAQ:XM) 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 2.49%, while on average next quarter revenue guidance was 0.04% under consensus. The technology sell-off has been putting pressure on stocks since November, but sales and marketing software stocks held their ground better than others, with share price down 8.08% since earnings, on average.

Qualtrics (NASDAQ:XM)

Founded in 2002 by Utah-based entrepreneur Ryan Smith, along with his father and brother, Qualtrics (NASDAQ:XM) provides organizations with software to collect and analyze feedback from customers and employees.

Qualtrics reported revenues of $335.6 million, up 40.6% year on year, beating analyst expectations by 3.06%. It was a strong quarter for the company, with an exceptional revenue growth and a solid sales guidance for the next quarter.

“Q1 was an outstanding quarter for Qualtrics – in fact, it was the biggest Q1 in our history,” said Qualtrics CEO Zig Serafin.

Qualtrics Total Revenue

The stock is down 47.1% since the results and currently trades at $12.88.

Is now the time to buy Qualtrics? Access our full analysis of the earnings results here, it's free.

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 Total Revenue

DoubleVerify achieved the strongest analyst estimates beat among its peers. The stock is up 24.9% since the results and currently trades at $22.83.

Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.

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 12.1% since the results and currently trades at $9.46.

Read our full analysis of ON24's results here.

Wix (NASDAQ:WIX)

Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.

Wix reported revenues of $341.5 million, up 12.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

The stock is down 14.5% since the results and currently trades at $60.86.

Read our full, actionable report on Wix here, it's free.

Upland Software (NASDAQ:UPLD)

Founder Jack McDonald’s second software rollup, Upland Software (NASDAQ:UPLD) is a one stop shop for sales and marketing software, project management, HR, and contact center services for small and medium sized businesses.

Upland Software reported revenues of $78.7 million, up 6.41% year on year, beating analyst expectations by 2.53%. It was a mixed quarter for the company, with a slow revenue growth but guidance for the full year above analysts' estimates.

The stock is down 22.6% since the results and currently trades at $11.95.

Read our full, actionable report on Upland Software here, it's free.

The author has no position in any of the stocks mentioned