The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the sales and marketing software stocks have fared in Q3, starting with Qualtrics (NASDAQ:XM).
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 25 sales and marketing software stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.67%, while on average next quarter revenue guidance was 2.42% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but sales and marketing software stocks held their ground better than others, with the share prices up 12.4% since the previous earnings results, on average.
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 $377.5 million, up 38.9% year on year, beating analyst expectations by 5.29%. It was a strong quarter for the company, with exceptional revenue growth and a solid beat of analyst estimates.
“Q3 was another strong quarter for Qualtrics with 39% revenue growth and continued operating margin improvement,” said Qualtrics CEO Zig Serafin.
The stock is up 10.5% since the results and currently trades at $11.59.
Is now the time to buy Qualtrics? Access our full analysis of the earnings results here, it's free.
Best Q3: Zeta (NYSE:ZETA)
Co-Founded by former Apple CEO, John Scully, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Zeta reported revenues of $152.2 million, up 32.2% year on year, beating analyst expectations by 7.94%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and solid top line growth.
Zeta delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 6.79% since the results and currently trades at $8.96.
Is now the time to buy Zeta? Access our full analysis of the earnings results here, it's free.
Slowest Q3: AppLovin (NASDAQ:APP)
Co-founded by Adam Foroughi who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is a provider of marketing and monetization tools for mobile app developers and also operates a portfolio of mobile games.
AppLovin reported revenues of $713 million, down 1.9% year on year, missing analyst expectations by 2.07%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
The stock is down 10.4% since the results and currently trades at $12.3.
Read our full analysis of AppLovin's results here.
Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) provides software as a service that helps companies better target their marketing by merging offline and online data about their customers.
LiveRamp reported revenues of $147 million, up 15.5% year on year, beating analyst expectations by 2.6%. It was a decent quarter for the company, with accelerating customer growth but a decline in net revenue retention rate.
The company added 2 enterprise customers paying more than $1m annually to a total of 92. The stock is up 62.5% since the results and currently trades at $25.36.
Read our full, actionable report on LiveRamp here, it's free.
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 $1.03 billion, up 7.17% year on year, missing analyst expectations by 0.33%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
The stock is up 12.5% since the results and currently trades at $81.84.
Read our full, actionable report on GoDaddy here, it's free.
The author has no position in any of the stocks mentioned