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 Q4, 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 mixed Q4; on average, revenues beat analyst consensus estimates by 2.68%, while on average next quarter revenue guidance was 0.03% above consensus. Tech stocks have been under pressure since the end of last year , but sales and marketing software stocks held their ground better than others, with share price down 4.64% since earnings, on average.
Best Q3: Sprinklr (NYSE:CXM)
Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.
Sprinklr reported revenues of $127 million, up 31.8% year on year, beating analyst expectations by 7.58%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.
“This is our fourth consecutive quarter of accelerating revenue growth and we couldn't be more pleased with our team's relentless focus on our customers. The most iconic enterprise brands continue to validate that the rise of Unified-CXM is inevitable. And only a platform designed with industry leading AI can solve their most complex problems. Sprinklr is well-positioned to become the strategic partner brands need to unify customer experiences across channels, teams, markets and products for a truly unified experience,” said Ragy Thomas, Sprinklr Founder and CEO.
Sprinklr scored the strongest analyst estimates beat of the whole group. The company added 6 enterprise customers paying more than $1m annually to a total of 80. The stock is down 14.5% since the results and currently trades at $11.53.
Is now the time to buy Sprinklr? Access our full analysis of the earnings results here, it's free.
ZoomInfo (NASDAQ:ZI)
Founded in 2007 as DiscoveryOrg and renamed after a merger in 2019, ZoomInfo (NASDAQ:ZI) is a software as a service product that provides sales departments with access to a database of prospective clients.
ZoomInfo reported revenues of $222.3 million, up 59.1% year on year, beating analyst expectations by 7.02%. It was a strong quarter for the company, with an exceptional revenue growth and a very optimistic guidance for the next quarter.
ZoomInfo scored the fastest revenue growth among its peers. The company added 202 enterprise customers paying more than $100,000 annually to a total of 1,452. The stock is down 4.01% since the results and currently trades at $56.42.
Is now the time to buy ZoomInfo? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Yext (NYSE:YEXT)
Founded in 2006 by Howard Lerman, Yext (NYSE:YEXT) offers software as a service that helps their clients manage and monitor their online listings and customer reviews across all relevant databases, from Google Maps to Alexa or Siri.
Yext reported revenues of $100.9 million, up 9.47% year on year, missing analyst expectations by 0.1%. It was a weak quarter for the company, with the guidance for both the next quarter and the full year below analyst estimates.
The stock is up 17.2% since the results and currently trades at $6.95.
Read our full analysis of Yext's results here.
The Trade Desk (NASDAQ:TTD)
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place and target their online ads.
The Trade Desk reported revenues of $395.5 million, up 23.6% year on year, beating analyst expectations by 1.52%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter.
The stock is down 19.1% since the results and currently trades at $65.06.
Read our full, actionable report on The Trade Desk here, it's free.
Freshworks (NASDAQ:FRSH)
Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium sized businesses.
Freshworks reported revenues of $105.4 million, up 44.4% year on year, beating analyst expectations by 5.12%. It was a very strong quarter for the company, with an exceptional revenue growth and guidance for the next quarter above analyst estimates.
The company added 735 enterprise customers paying more than $5,000 annually to a total of 14,814. The stock is down 10.9% since the results and currently trades at $20.
Read our full, actionable report on Freshworks here, it's free.
The author has no position in any of the stocks mentioned