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Unpacking Q4 Earnings: ON24 (NYSE:ONTF) In The Context Of Other Sales And Marketing Software Stocks


Adam Hejl /
2022/04/22 7:07 am EDT
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The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how ON24 (NYSE:ONTF) and the rest of the sales and marketing software stocks fared in Q4.

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 mixed Q4; on average, revenues beat analyst consensus estimates by 2.24%, while on average next quarter revenue guidance was 0.01% above consensus. Technology stocks have been hit hard on fears of higher interest rates and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share price declining 10.5% since earnings, on average.

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 $52 million, down 2.35% year on year, in line with analyst expectations. It was a slow quarter for the company, with the guidance for both the next quarter and the full year below analyst estimates.

“2021 was the most pivotal year in the company’s history as we achieved numerous milestones across the business. To continue on our path towards reaching $500 million of ARR and beyond, the entire team is focused on executing against key priorities in 2022,” said Sharat Sharan, co-founder and CEO of ON24.

ON24 Total Revenue

ON24 delivered the weakest full year guidance update of the whole group. The stock is down 11.8% since the results and currently trades at $13.73.

Read our full report on ON24 here, it's free.

Best Q4: Sprinklr (NYSE:CXM)

Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.

Sprinklr reported revenues of $135.6 million, up 30.3% year on year, beating analyst expectations by 4.05%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and a full year guidance beating analysts' expectations.

Sprinklr Total Revenue

Sprinklr scored the highest full year guidance raise among its peers. The company added 2 enterprise customers paying more than $1m annually to a total of 82. The stock is up 16% since the results and currently trades at $13.20.

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

Weakest Q4: Yext (NYSE:YEXT)

Founded in 2006 by Howard Lerman, Yext (NYSE:YEXT) offers software as a service that helps their clients manage and monitor their online listings and customer reviews across all relevant databases, from Google Maps to Alexa or Siri.

Yext reported revenues of $100.9 million, up 9.47% year on year, missing analyst expectations by 0.1%. It was a weak quarter for the company, with the guidance for both the next quarter and the full year below analyst estimates.

The stock is up 0.5% since the results and currently trades at $5.96.

Read our full analysis of Yext's results here.

HubSpot (NYSE:HUBS)

Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software as a service platform that helps small and medium-size businesses sell, market themselves, and get found on the internet.

HubSpot reported revenues of $369.3 million, up 46.5% year on year, beating analyst expectations by 3.29%. It was an impressive quarter for the company, with an exceptional revenue growth and guidance for the next year above analysts' estimates.

The company added 7,298 customers to a total of 135,442. The stock is down 24.5% since the results and currently trades at $403.

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

Zendesk (NYSE:ZEN)

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 $375.3 million, up 32.4% year on year, beating analyst expectations by 1.5%. It was a decent quarter for the company, with a strong top-line growth and revenue guidance for the next quarter roughly in line with analysts' expectations.

The stock is up 7.72% since the results and currently trades at $123.

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

The author has no position in any of the stocks mentioned