1525

Qualtrics (XM) Q4 Earnings Report Preview: What To Look For


Petr Huřťák /
2023/01/24 4:15 am EST
Add to Watchlist

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

Last quarter Qualtrics reported revenues of $377.5 million, up 38.9% year on year, beating analyst revenue expectations by 5.29%. It was a strong quarter for the company, with exceptional revenue growth and a solid beat of analyst estimates.

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 20.5% year on year to $381.1 million, slowing down from the 47.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 3.9%.

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 there has been positive sentiment among investors in the segment, with the stocks up on average 14.8% over the last month. Qualtrics is up 17% during the same time, and is heading into the earnings with analyst price target of $15.94, compared to share price of $11.59.

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.