As we reflect back on the just completed Q2 sales and marketing software sector earnings season, we dig into the relative performance of 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 26 sales and marketing software stocks we track reported a slower Q2; on average, revenues beat analyst consensus estimates by 1.83%, while on average next quarter revenue guidance was 1.25% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable and sales and marketing software stocks have not been spared, with share prices down 13.9% since the previous earnings results, on average.
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 $48.2 million, down 7.45% year on year, beating analyst expectations by 2.03%. It was a weak quarter for the company, with a revenue decline and an underwhelming revenue guidance for the next quarter.
“In the second quarter, thanks to the hard work of our team, we exceeded our guidance and saw strong expansion activity with a number of our top customers increasing their investments with us,” said Sharat Sharan, co-founder and CEO of ON24.
ON24 delivered least impressive revenue number of the whole group. The stock is down 17.4% since the results and currently trades at $8.50.
Is now the time to buy ON24? Access our full analysis of the earnings results here, it's free.
Best Q2: 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 $109.8 million, up 43.4% year on year, beating analyst expectations by 7.67%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
DoubleVerify achieved the strongest analyst estimates beat among its peers. The stock is up 11.8% since the results and currently trades at $26.72.
Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Shopify (NYSE:SHOP)
Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) provides a software platform for building and operating e-commerce businesses.
Shopify reported revenues of $1.29 billion, up 15.6% year on year, missing analyst expectations by 2.67%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.
The stock is down 8.94% since the results and currently trades at $25.73.
The Trade Desk (NASDAQ:TTD)
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place and target their online ads.
The Trade Desk reported revenues of $376.9 million, up 34.6% year on year, beating analyst expectations by 3.22%. It was a strong quarter for the company, with a meaningful improvement in gross margin.
The stock is down 3.46% since the results and currently trades at $52.60.
Founded in 2006 by three Danish friends who got tired of implementing complex old-school solutions, Zendesk (NYSE:ZEN) is a software as a service platform that makes it easier for companies to provide help and support to their customers.
Zendesk reported revenues of $407.2 million, up 27.9% year on year, in line with analyst expectations. It was a mixed quarter for the company, with strong top line growth but a decline in gross margin.
The stock is up 1.3% since the results and currently trades at $76.07.
Zendesk has agreed to be acquired by a group of buyout firms led by Hellman & Friedman and Permira in an all-cash transaction that values Zendesk at approximately $10.2 billion.
The author has no position in any of the stocks mentioned