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Spotting Winners: C3.ai (NYSE:AI) And Data and Analytics Software Stocks In Q1


Jabin Bastian /
2022/06/24 3:22 am EDT
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As we reflect back on the just completed Q1 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 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 mixed Q1; on average, revenues beat analyst consensus estimates by 3.19%, while on average next quarter revenue guidance was 0.76% under consensus. Tech stocks have been under pressure since the end of last year, but data and analytics software stocks held their ground better than others, with the share price up 8.01% since earnings, on average.

Weakest Q1: 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 $72.3 million, up 38.3% year on year, beating analyst expectations by 1.44%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year below analysts' estimates.

“Our fourth quarter results showed continued strength across the business and came in ahead of expectations, with revenue growing 38% year over year,” said CEO Thomas M. Siebel.

C3.ai Total Revenue

C3.ai delivered the weakest full year guidance update of the whole group. The stock is up 1.94% since the results and currently trades at $18.90.

Read our full report on C3.ai here, it's free.

Best Q1: Confluent (NASDAQ:CFLT)

Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.

Confluent reported revenues of $126.1 million, up 63.7% year on year, beating analyst expectations by 6.45%. Despite the  stock dropping on the results, it was a very strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.

Confluent Total Revenue

Confluent achieved the highest full year guidance raise among its peers. The company added 57 enterprise customers paying more than $100,000 annually to a total of 791. The stock is down 19.7% since the results and currently trades at $22.67.

Is now the time to buy Confluent? Access our full analysis of the earnings results here, it's free.

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 $446.3 million, up 30.8% year on year, in line with analyst expectations. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter.

The stock is down 0.42% since the results and currently trades at $9.44.

Read our full analysis of Palantir's results here.

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 $239.3 million, up 34.7% year on year, beating analyst expectations by 3%. It was a mixed quarter for the company, with an underwhelming guidance for the next year and decelerating customer growth.

The company added 70 enterprise customers paying more than $100,000 annually to a total of 960. The stock is up 16.5% since the results and currently trades at $72.34.

Read our full, actionable report on Elastic here, it's free.

Domo (NASDAQ:DOMO)

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 $74.4 million, up 23.9% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in gross margin but an underwhelming revenue guidance for the next quarter.

Domo had the weakest performance against analyst estimates among the peers. The stock is up 2.65% since the results and currently trades at $30.96.

Read our full, actionable report on Domo here, it's free.

The author has no position in any of the stocks mentioned