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Q2 Earnings Roundup: Elastic (NYSE:ESTC) Vs The Rest Of The Data and Analytics Software Segment


Adam Hejl /
2021/09/29 7:30 am EDT
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Earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Elastic (NYSE:ESTC) and the rest of the data and analytics software stocks fared in Q2.

Data is the lifeblood of the internet and software in general, and its importance to businesses continues to accelerate. Tracking sensors, ubiquitous mobile devices, every action in every app are producing an explosion of analyzable data which increasingly gets stored in public cloud environments. But in order to be useful, the data needs to be moved around and analyzed. This drives demand for a variety of software solutions, from databases to analytics software, helping companies derive insights from this data to better understand customer preferences, supply chains, and forecast at ever more granular levels as a means of improving competitive advantage.

The 8 data and analytics software stocks we track reported a strong Q2; on average, revenues beat analyst consensus estimates by 8.51%, while on average next quarter revenue guidance was 4.85% above consensus. The market rewarded the results with the average return the day after earnings coming in at 6.08%.

Elastic (NYSE:ESTC)

Founded in 2012 in the Netherlands, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.

Elastic reported revenues of $193 million, up 49.8% year on year, beating analyst expectations by 11.4%. It was strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

“The first quarter was a strong start to the fiscal year driven by crisp execution, the continued robust growth of Elastic Cloud, and our investments against the rich market opportunity ahead of us,” said Shay Banon, Elastic founder, and chief executive officer.

Elastic Total Revenue

The stock is down 3.18% since the results and currently trades at $153.

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

Best Q2: 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 $88.3 million, up 64% year on year, beating analyst expectations by 14.9%. It was impressive quarter for the company, with a massive beat of analyst estimates and an exceptional revenue growth.

Confluent Total Revenue

Confluent delivered the strongest analyst estimates beat among its peers. The stock is up 10.1% since the results and currently trades at $64.

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

Weakest Q2: 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 $52.4 million, up 29.4% year on year, beating analyst expectations by 2.21%. It was still a decent quarter for the company, with a strong top line growth but a decline in gross margin.

C3.ai had the weakest performance against analyst estimates in the group. The stock is down 10.3% since the results and currently trades at $46.90.

Read our full analysis of C3.ai's results here.

Snowflake (NYSE:SNOW)

Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake 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 $272.1 million, up 104% year on year, beating analyst expectations by 6.01%. It was very strong quarter for the company, with an exceptional revenue growth.

Snowflake scored the fastest revenue growth among the peers. The company added 12 enterprise customers paying more than $1m annually to a total of 116. The stock is up 7.63% since the results and currently trades at $300.48.

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

MongoDB (NASDAQ:MDB)

Started in 2007 by the team behind Google’s ad platform DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.

MongoDB reported revenues of $198.7 million, up 43.7% year on year, beating analyst expectations by 7.9%. It was strong quarter for the company, with an exceptional revenue growth.

MongoDB achieved the fastest growth in large customers among the peers. The company added 69 enterprise customers paying more than $100,000 annually to a total of 1,126. The stock is up 26.1% since the results and currently trades at $470.99.

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

The author has no position in any of the stocks mentioned