Heading into the next earnings season, we look at the numbers and key takeaways for the data and analytics software stocks, 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 insights from the data to better understand customer preferences, supply chains, and forecast at ever more granular levels to improve their competitive advantage.
The 13 data and analytics software stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 3.95%, while on average next quarter revenue guidance was 0.46% above consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but data and analytics software stocks held their ground better than others, with the share prices up 6.78% since the previous earnings results, on average.
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 $264.4 million, up 28.3% year on year, beating analyst expectations by 1.05%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“In Q2, we exceeded both our revenue and profitability targets, demonstrating the operating leverage inherent in our business model,” said Ash Kulkarni, CEO, Elastic.
The stock is down 10% since the results and currently trades at $55.2.
Read our full report on Elastic here, it's free.
Best Q3: Alteryx (NYSE:AYX)
Initially created as a way to organise census data for the government, Alteryx (NYSE:AYX) provides software that helps companies automate and analyse their internal data processes.
Alteryx reported revenues of $215.7 million, up 74.6% year on year, beating analyst expectations by 12.2%. It was an incredible quarter for the company, with an impressive beat of analyst estimates and very optimistic guidance for the next quarter.
Alteryx pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 44 customers to a total of 8,340. The stock is up 8.84% since the results and currently trades at $52.35.
Is now the time to buy Alteryx? Access our full analysis of the earnings results here, it's free.
Slowest Q3: 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 $62.4 million, up 7.11% year on year, beating analyst expectations by 2.61%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin.
The stock is up 13.3% since the results and currently trades at $13.56.
Read our full analysis of C3.ai's results here.
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 $333.6 million, up 47% year on year, beating analyst expectations by 9.56%. It was a strong quarter for the company, with accelerating customer growth and a very optimistic guidance for the next quarter.
MongoDB had the weakest full year guidance update among the peers. The company added 83 enterprise customers paying more than $100,000 annually to a total of 1,545. The stock is up 36.5% since the results and currently trades at $198.00.
Read our full, actionable report on MongoDB here, it's free.
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 $557 million, up 66.5% year on year, beating analyst expectations by 3.36%. It was a decent quarter for the company, with exceptional revenue growth but a decline in net revenue retention rate.
The company added 41 enterprise customers paying more than $1m annually to a total of 287. The stock is up 1.38% since the results and currently trades at $144.80.
Read our full, actionable report on Snowflake here, it's free.
The author has no position in any of the stocks mentioned