Heading into the next earnings season, it’s time to take stock of the best and worst performers amongst the data and analytics software stocks in Q3, including C3.ai (NYSE:AI) and its peers.
Data is the lifeblood of the internet and software, and its importance to businesses continues to accelerate. Tracking sensors, ubiquitous mobile devices, and every action in every app are producing an explosion of analyzable data which increasingly gets stored in public cloud environments. This drives demand for a variety of software solutions, from databases to analytics software, which help companies derive actionable nsights from the data to better understand customer preferences, supply chains, and forecast at ever more granular levels to improve their competitive advantage.
The 12 data and analytics software stocks we track reported a decent Q3; on average, revenues beat analyst consensus estimates by 4.41%, while on average next quarter revenue guidance was 3.21% above consensus. There has been a stampede out of high valuation technology stocks and data and analytics software stocks have not been spared, with share price down 30.5% since earnings, on average.
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
C3.ai reported revenues of $58.2 million, up 40.9% year on year, beating analyst expectations by 2.3%. It was a decent quarter for the company, with an exceptional revenue growth but a decline in gross margin.
“We closed another strong quarter, including a revenue increase of 41% from a year ago that exceeds our guidance and sell-side analysts’ expectations,” said CEO Thomas M. Siebel.
The stock is down 24.8% since the results and currently trades at $25.41.
Is now the time to buy C3.ai? Access our full analysis of the earnings results here, it's free.
Best Q3: Snowflake (NYSE:SNOW)
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $334.4 million, up 109% year on year, beating analyst expectations by 9.24%. It was an outstanding quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
Snowflake delivered the fastest revenue growth among its peers. The company added 32 enterprise customers paying more than $1m annually to a total of 148. The stock is down 11.1% since the results and currently trades at $276.
Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Commvault Systems (NASDAQ:CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention and compliance.
Commvault Systems reported revenues of $177.8 million, up 3.91% year on year, missing analyst expectations by 3.75%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.
Commvault Systems had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported loss of 22 enterprise customers paying more than $100,000 annually and ended up with a total of 163. The stock is down 10.8% since the results and currently trades at $67.50.
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database as a service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $30.8 million, up 19.9% year on year, beating analyst expectations by 4.76%. It was a decent quarter for the company, with revenue guidance for the next quarter roughly in line with what analysts were expecting.
The stock is down 30.1% since the results and currently trades at $20.62.
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $111.4 million, up 37.2% year on year, beating analyst expectations by 2.38%. It was a mixed quarter for the company, with a significant improvement in gross margin but decelerating customer growth.
The company lost 4000 customers and ended up with a total of 598,000. The stock is down 41.2% since the results and currently trades at $55.61.
The author has no position in any of the stocks mentioned