Looking back on sales and marketing software stocks' Q3 earnings, we examine this quarter's best and worst performers, including Sprinklr (NYSE:CXM) and its peers.
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 25 sales and marketing software stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.67%, while on average next quarter revenue guidance was 2.42% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but sales and marketing software stocks held their ground better than others, with the share prices up 8.83% since the previous earnings results, 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 $157.2 million, up 23.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“We are very pleased with Sprinklr’s third quarter performance and beat expectations across all key metrics. We remain focused on our fundamentals during this challenging environment and generated profitable revenue growth and continued operating margin improvement. But we're most proud of the results the world's largest brands are achieving with our platform and proprietary AI including automation, faster response times, cost savings and deeper customer insights,” said Ragy Thomas, Sprinklr Founder and CEO.
The stock is up 6.8% since the results and currently trades at $8.79.
Best Q3: Zeta (NYSE:ZETA)
Co-Founded by former Apple CEO, John Scully, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Zeta reported revenues of $152.2 million, up 32.2% year on year, beating analyst expectations by 7.94%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and solid top line growth.
Zeta pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 3.45% since the results and currently trades at $8.68.
Is now the time to buy Zeta? Access our full analysis of the earnings results here, it's free.
Slowest Q3: AppLovin (NASDAQ:APP)
Co-founded by Adam Foroughi who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is a provider of marketing and monetization tools for mobile app developers and also operates a portfolio of mobile games.
AppLovin reported revenues of $713 million, down 1.9% year on year, missing analyst expectations by 2.07%. It was a weak quarter for the company, with declining gross margin and full year revenue guidance missing analysts' expectations.
The stock is down 20.7% since the results and currently trades at $10.88.
Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website.
GoDaddy reported revenues of $1.03 billion, up 7.17% year on year, missing analyst expectations by 0.33%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
The stock is up 10% since the results and currently trades at $80.04.
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 $377.5 million, up 38.9% year on year, beating analyst expectations by 5.29%. It was a strong quarter for the company, with exceptional revenue growth. and guidance for the next quarter above analyst estimates.
The stock is up 7.34% since the results and currently trades at $11.25.
The author has no position in any of the stocks mentioned