As data and analytics software stocks’ Q2 earnings season wraps, let's dig into this quarter’s best and worst performers, 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 Q2; on average, revenues beat analyst consensus estimates by 3.83%, while on average next quarter revenue guidance was 1.91% under consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows and data and analytics software stocks have not been spared, with share prices down 12.8% 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 $250 million, up 29.5% year on year, beating analyst expectations by 1.51%. It was a mixed quarter for the company, with a strong top line growth but a decline in gross margin.
“We delivered a strong Q1 and continued to execute well across the business driving 34% constant currency year-over-year revenue growth as we deepen our focus on Elastic Cloud, which represented 39% of total revenue this quarter versus 32% one year ago,” said Ash Kulkarni, CEO, Elastic.
The stock is down 10.3% since the results and currently trades at $76.11.
Read our full report on Elastic here, it's free.
Best Q2: 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 $180.6 million, up 50.4% 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 a very optimistic guidance for the next quarter.
Alteryx delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 101 customers to a total of 8,296. The stock is up 12.4% since the results and currently trades at $56.94.
Is now the time to buy Alteryx? 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 $65.3 million, up 24.6% year on year, missing analyst expectations by 1.08%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.
C3.ai had the weakest full year guidance update in the group. The stock is down 25.9% since the results and currently trades at $13.3.
Read our full analysis of C3.ai's results here.
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.
Amplitude reported revenues of $58.1 million, up 48% year on year, beating analyst expectations by 5.34%. It was a strong quarter for the company, with an exceptional revenue growth and guidance for the next quarter above analysts' estimates.
The company added 135 customers to a total of 1,836. The stock is up 11.3% since the results and currently trades at $18.00.
Read our full, actionable report on Amplitude here, it's free.
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $133.8 million, up 28.9% year on year, missing analyst expectations by 0.44%. It was a slower quarter for the company, with a decline in net revenue retention rate and a miss of the top line analyst estimates.
The stock is down 17.2% since the results and currently trades at $39.62.
Read our full, actionable report on DigitalOcean here, it's free.
The author has no position in any of the stocks mentioned