The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the sales and marketing software stocks have fared in Q1, starting with ON24 (NYSE:ONTF).
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 a weak Q1; on average, revenues beat analyst consensus estimates by 2.48%, while on average next quarter revenue guidance was 0.04% under consensus. Technology stocks have been hit hard on fears of higher interest rates, but sales and marketing software stocks held their ground better than others, with share price down 0.33% since earnings, on average.
Weakest Q1: 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 $48.4 million, down 3.21% year on year, beating analyst expectations by 1.88%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and a slow revenue growth.
“In Q1, we’ve made progress on the key priorities that we’ve laid out for 2022. Looking ahead to the remainder of 2022 and beyond, our strategic growth agenda is focused on evolving our digital engagement platform for a post-pandemic world. We’ve launched two new products in the last two quarters which we believe will be meaningful future growth drivers in expanding our platform and the market opportunity,” said Sharat Sharan, co-founder and CEO of ON24.
ON24 delivered the weakest full year guidance update of the whole group. The stock is down 4.08% since the results and currently trades at $10.33.
Read our full report on ON24 here, it's free.
Best Q1: 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 $96.7 million, up 43.1% year on year, beating analyst expectations by 7.58%. 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 35% since the results and currently trades at $24.68.
Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.
Salesforce (NYSE:CRM)
Launched in 1999 from a rented one-bedroom apartment in San Francisco by Marc Benioff and his three co-founders, Salesforce (NYSE:CRM) is a software as a service platform that helps companies access, manage and share sales information.
Salesforce reported revenues of $7.41 billion, up 24.2% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a full year guidance missing analysts' expectations.
The stock is up 6.2% since the results and currently trades at $170.94.
Read our full analysis of Salesforce's results here.
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 $315.3 million, up 43.4% year on year, beating analyst expectations by 3.63%. It was a mixed quarter for the company, with an exceptional revenue growth but guidance for the next quarter below analysts' estimates.
The stock is up 0.97% since the results and currently trades at $44.17.
Read our full, actionable report on The Trade Desk here, it's free.
ZoomInfo (NASDAQ:ZI)
Founded in 2007 as DiscoveryOrg and renamed after a merger in 2019, ZoomInfo (NASDAQ:ZI) is a software as a service product that provides sales departments with access to a database of prospective clients.
ZoomInfo reported revenues of $241.7 million, up 57.6% year on year, beating analyst expectations by 6.03%. It was a very strong quarter for the company, with an exceptional revenue growth.
ZoomInfo achieved the fastest revenue growth and highest full year guidance raise among the peers. The company added 171 enterprise customers paying more than $100,000 annually to a total of 1,623. The stock is down 24.8% since the results and currently trades at $37.
Read our full, actionable report on ZoomInfo here, it's free.
The author has no position in any of the stocks mentioned