The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the sales and marketing software stocks have fared in Q1, starting with Sprinklr (NYSE:CXM).
The Internet and the exploding amount of data have transformed how businesses interact with, market to, and transact with their customers. Personalization of offerings, e-commerce, targeted advertising and data-empowered sales teams are now table stakes for modern businesses, and sales and marketing software providers are becoming the tools of evolving customer interaction.
The 23 sales and marketing software stocks we track reported a weak Q1; on average, revenues beat analyst consensus estimates by 2.48%, while on average next quarter revenue guidance was 0.04% under consensus. Tech stocks have had a rocky start in 2022, but sales and marketing software stocks held their ground better than others, with share price down 7.43% since earnings, on average.
Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.
Sprinklr reported revenues of $144.9 million, up 30.6% year on year, beating analyst expectations by 2.84%. It was a decent quarter for the company, with a strong top line growth.
“We are very pleased with Sprinklr’s performance in Q1 across our four product suites, as customers within every industry continue to drive revenue, reduce costs and mitigate risks using Sprinklr’s unified platform. With improved operating discipline, we achieved positive adjusted free cash flow for the quarter,” said Ragy Thomas, Sprinklr Founder and CEO.
The stock is up 3.28% since the results and currently trades at $10.37.
Is now the time to buy Sprinklr? Access our full analysis of the earnings results here, it's free.
Best Q1: DoubleVerify (NYSE:DV)
When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE: DV), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.
DoubleVerify reported revenues of $96.7 million, up 43.1% year on year, beating analyst expectations by 7.58%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
DoubleVerify delivered the strongest analyst estimates beat among its peers. The stock is up 24.9% since the results and currently trades at $22.83.
Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.
Weakest Q1: ON24 (NYSE:ONTF)
Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.
ON24 reported revenues of $48.4 million, down 3.21% year on year, beating analyst expectations by 1.88%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and a slow revenue growth.
ON24 had the slowest revenue growth and weakest full year guidance update in the group. The stock is down 12.1% since the results and currently trades at $9.46.
Founded in 2002 by Utah-based entrepreneur Ryan Smith, along with his father and brother, Qualtrics (NASDAQ:XM) provides organizations with software to collect and analyze feedback from customers and employees.
Qualtrics reported revenues of $335.6 million, up 40.6% year on year, beating analyst expectations by 3.06%. It was a strong quarter for the company, with an exceptional revenue growth and guidance for the next quarter above analysts' estimates.
The stock is down 47.1% since the results and currently trades at $12.88.
Founded in New York City in 2003, Squarespace (NYSE:SQSP) is a platform for small businesses and creators to build their digital presences online.
Squarespace reported revenues of $207.7 million, up 15.6% year on year, beating analyst expectations by 1.48%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.
The stock is up 56.7% since the results and currently trades at $22.63.
The author has no position in any of the stocks mentioned