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Q3 Earnings Outperformers: Elastic (NYSE:ESTC) And The Rest Of The Data and Analytics Software Stocks


Adam Hejl /
2022/01/19 5:59 am EST
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Heading into the new earnings season, it’s time to take stock of the best and worst performers amongst the data and analytics software stocks in Q3, including Elastic (NYSE:ESTC) 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 decent Q3; on average, revenues beat analyst consensus estimates by 4.41%, while on average next quarter revenue guidance was 3.21% above consensus. Tech stocks have had a rocky start in 2022 and data and analytics software stocks have not been spared, with share price down 28.1% since earnings, on average.

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 $205.9 million, up 42.1% year on year, beating analyst expectations by 5.86%. It was an impressive quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.

“Our strong second-quarter results were fueled by the rapid adoption of Elastic Cloud, the increased strategic relevance of our solutions, and continued expansion across our customer base,” said Shay Banon, Elastic founder and chief executive officer.

Elastic Total Revenue

The stock is down 35.2% since the results and currently trades at $90.12.

We think Elastic is a good business, but is it a buy today? Read our full report here, it's free.

Best Q3: Snowflake (NYSE:SNOW)

Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.

Snowflake reported revenues of $334.4 million, up 109% year on year, beating analyst expectations by 9.24%. It was a strong quarter for the company, with an exceptional revenue growth.

Snowflake Total Revenue

Snowflake scored the fastest revenue growth among its peers. The company added 32 enterprise customers paying more than $1m annually to a total of 148. The stock is down 7.9% since the results and currently trades at $286.

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

Weakest Q3: Commvault (NASDAQ:CVLT)

Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention and compliance.

Commvault reported revenues of $177.8 million, up 3.91% year on year, missing analyst expectations by 3.75%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.

Commvault had the weakest performance against analyst estimates and slowest revenue growth in the group. The company lost 22 enterprise customers paying more than $100,000 annually and ended up with a total of 163. The stock is down 10.8% since the results and currently trades at $67.45.

Read our full analysis of Commvault's results here.

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 $102.5 million, up 66.7% year on year, beating analyst expectations by 13%. It was a very strong quarter for the company, with an impressive beat of analyst estimates.

Confluent scored the strongest analyst estimates beat and highest full year guidance raise among the peers. The company added 47 enterprise customers paying more than $100,000 annually to a total of 664. The stock is down 16.5% since the results and currently trades at $61.45.

Read our full, actionable report on Confluent 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 $392.1 million, up 35.5% year on year, beating analyst expectations by 1.51%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter.

The stock is down 44% since the results and currently trades at $14.95.

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

The author has no position in any of the stocks mentioned