Q3 Earnings Highlights: C3.ai (NYSE:AI) Vs The Rest Of The Data and Analytics Software Stocks
Radek Strnad 2023/01/17 5:02 am EST
As we reflect back on the just completed Q3 data and analytics software sector earnings season, we dig into the relative performance of 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 Q3; on average, revenues beat analyst consensus estimates by 3.95%, while on average next quarter revenue guidance was 0.46% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but data and analytics software stocks held their ground better than others, with the share prices up 3.62% since the previous earnings results, on average.
Slowest Q3: 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 $62.4 million, up 7.11% year on year, beating analyst expectations by 2.61%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin.
“It was a solid second quarter, with subscription revenue growing 26% year over year,” said CEO Thomas M. Siebel.
The stock is up 5.35% since the results and currently trades at $12.6.
Read our full report on C3.ai here, it's free.
Best Q3: 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 $215.7 million, up 74.6% 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 very optimistic guidance for the next quarter.
Alteryx pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 44 customers to a total of 8,340. The stock is up 5.85% since the results and currently trades at $50.91.
Is now the time to buy Alteryx? Access our full analysis of the earnings results here, it's free.
Elastic (NYSE:ESTC)
Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.
Elastic reported revenues of $264.4 million, up 28.3% year on year, beating analyst expectations by 1.05%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
The stock is down 16.8% since the results and currently trades at $51.07.
Read our full analysis of Elastic's results here.
Palantir (NYSE:PLTR)
Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.
Palantir reported revenues of $477.8 million, up 21.8% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.
Palantir had the weakest performance against analyst estimates among the peers. The stock is down 12.6% since the results and currently trades at $6.93.
Read our full, actionable report on Palantir here, it's free.
Amplitude (NASDAQ:AMPL)
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 $61.6 million, up 35.4% year on year, beating analyst expectations by 2.36%. It was a decent quarter for the company, with exceptional revenue growth.
The company added 77 customers to a total of 1,913. The stock is down 18.6% since the results and currently trades at $12.07.
Read our full, actionable report on Amplitude here, it's free.
The author has no position in any of the stocks mentioned