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Q1 Rundown: ON24 (NYSE:ONTF) Vs Other Sales And Marketing Software Stocks


Max Juang /
2024/07/08 3:49 am EDT

Looking back on sales and marketing software stocks' Q1 earnings, we examine this quarter's best and worst performers, including ON24 (NYSE:ONTF) 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 23 sales and marketing software stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 2.3%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and sales and marketing software stocks have held roughly steady amidst all this, with share prices up 0.1% on average since the previous earnings results.

ON24 (NYSE:ONTF)

Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.

ON24 reported revenues of $37.73 million, down 12.4% year on year, topping analysts' expectations by 2%. It was a decent quarter for the company, with a solid beat of analysts' billings estimates but a decline in its gross margin.

“In Q1, we continued to execute against our strategic and financial targets, delivering solid topline results and achieving our profitability targets for the fourth quarter in a row,” said Sharat Sharan, co-founder and CEO of ON24.

ON24 Total Revenue

ON24 delivered the slowest revenue growth of the whole group. The stock is down 12.3% since the results and currently trades at $5.93.

Is now the time to buy ON24? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 both a mobile game studio and provider of marketing and monetization tools for mobile app developers.

AppLovin reported revenues of $1.06 billion, up 47.9% year on year, outperforming analysts' expectations by 8.6%. It was an exceptional quarter for the company: AppLovin blew past analysts' revenue and adjusted EBITDA expectations this quarter. Looking forward, its revenue and adjusted EBITDA guidance for next quarter both exceeded expectations by a convincing amount.

AppLovin Total Revenue

AppLovin achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 17.3% since the results and currently trades at $86.88.

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

Weakest Q1: Sprout Social (NASDAQ:SPT)

Founded by Justyn Howard and Aaron Rankin in 2010, Sprout Social (NASDAQ:SPT) provides a software as a service platform that companies can use to schedule and respond to posts on major social media networks like Twitter, Facebook, Instagram, Youtube and LinkedIn.

Sprout Social reported revenues of $96.78 million, up 28.7% year on year, falling short of analysts' expectations by 0.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' billings estimates.

Sprout Social had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company added 134 enterprise customers paying more than $10,000 annually to reach a total of 8,823. The stock is down 24.8% since the results and currently trades at $36.23.

Read our full analysis of Sprout Social's results here.

PubMatic (NASDAQ:PUBM)

Founded in 2006 as an online ad platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.

PubMatic reported revenues of $66.7 million, up 20.4% year on year, surpassing analysts' expectations by 7.3%. It was a very strong quarter for the company, with a significant improvement in its net revenue retention rate and strong sales guidance for the next quarter.

The stock is down 18.5% since the results and currently trades at $19.6.

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

DoubleVerify (NYSE:DV)

When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE:DV), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.

DoubleVerify reported revenues of $140.8 million, up 14.8% year on year, surpassing analysts' expectations by 1.8%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

The stock is down 34.4% since the results and currently trades at $20.07.

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

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