Looking back on data and analytics software stocks' Q2 earnings, we examine this quarter’s best and worst performers, 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 insights from the data to better understand customer preferences, supply chains, and forecast at ever more granular levels to improve their competitive advantage.
The 13 data and analytics software stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 3.83%, while on average next quarter revenue guidance was 1.91% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and data and analytics software stocks have not been spared, with share prices down 20% since the previous earnings results, on average.
Weakest Q2: C3.ai (NYSE:AI)
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 $65.3 million, up 24.6% year on year, missing analyst expectations by 1.08%. It was a weak quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.
“I’m pleased to announce that C3 AI is transitioning from a subscription model to a consumption-based pricing model, bringing us in line with what is becoming the standard among enterprise SaaS companies,” said CEO Thomas M. Siebel.
C3.ai delivered the weakest full year guidance update of the whole group. The stock is down 26.2% since the results and currently trades at $13.26.
Best Q2: Alteryx (NYSE:AYX)
Initially created as a way to organise census data for the government, Alteryx (NYSE:AYX) provides software that helps companies automate and analyse their internal data processes.
Alteryx reported revenues of $180.6 million, up 50.4% year on year, beating analyst expectations by 12.2%. It was an incredible quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.
Alteryx pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 101 customers to a total of 8,296. The stock is up 15.1% since the results and currently trades at $58.33.
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Founded by Josh James after selling his former business Omniture to Adobe, Domo (NASDAQ:DOMO) provides business intelligence software that allows managers to access and visualize critical business metrics in real-time, using their smartphones.
Domo reported revenues of $75.5 million, up 20.2% year on year, missing analyst expectations by 1.13%. It was a weak quarter for the company, with revenue guidance for both the next quarter and full year missing analysts' expectations.
Domo had the weakest performance against analyst estimates in the group. The stock is down 41.2% since the results and currently trades at $16.80.
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.
Amplitude reported revenues of $58.1 million, up 48% year on year, beating analyst expectations by 5.34%. It was a strong quarter for the company, with an exceptional revenue growth.
The company added 135 customers to a total of 1,836. The stock is down 2.47% since the results and currently trades at $15.76.
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 $197.9 million, up 7.93% year on year, beating analyst expectations by 1.41%. It was a weaker quarter for the company, with a slow revenue growth.
Commvault Systems had the slowest revenue growth among the peers. The company lost 42 enterprise customers paying more than $100,000 annually and ended up with a total of 184. The stock is down 16% since the results and currently trades at $51.54.
The author has no position in any of the stocks mentioned