Qualtrics (XM) Q1 Earnings: What To Expect

Adam Hejl /
2022/04/20 7:13 am EDT

Online survey software provider Qualtrics (NASDAQ:XM) will be announcing earnings results tomorrow after market close. Here's what to look for.

Last quarter Qualtrics reported revenues of $316 million, up 47.9% year on year, beating analyst revenue expectations by 6.18%. It was a decent quarter for the company, with an exceptional revenue growth but a decline in gross margin.

Is Qualtrics buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Qualtrics's revenue to grow 36.4% year on year to $325.6 million, in line with the 35.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at $0.01 per share.

Qualtrics Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.91%.

With Qualtrics being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for sales and marketing software stocks, but the segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 4.69% over the last month. Qualtrics is down 11.2% during the same time, and is heading into the earnings with analyst price target of $40.33, compared to share price of $26.52.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.