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Data and Analytics Software Stocks Q2 Teardown: Palantir (NYSE:PLTR) Vs The Rest


Kayode Omotosho /
2021/10/18 6:10 am EDT
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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the data and analytics software stocks, starting with Palantir (NYSE:PLTR).

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 8 data and analytics software stocks we track reported a a strong Q2; on average, revenues beat analyst consensus estimates by 6.86%, while on average next quarter revenue guidance was 3.58% above consensus. The market rewarded the results with the average return the day after earnings coming in at 4.2%.

Palantir (NYSE:PLTR)

Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.

Palantir reported revenues of $375.6 million, up 49.1% year on year, beating analyst expectations by 4.02%. It was a solid quarter for the company, with an exceptional revenue growth and a decent beat of analyst estimates.

Palantir Total Revenue

The stock is up 7.06% since the results and currently trades at $23.93.

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

Best Q2: Confluent (NASDAQ:CFLT)

Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.

Confluent reported revenues of $88.3 million, up 64% year on year, beating analyst expectations by 14.9%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and a strong revenue growth.

Confluent Total Revenue

Confluent scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 65.9% since the results and currently trades at $66.80.

Is now the time to buy Confluent? 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 $52.4 million, up 29.4% year on year, beating analyst expectations by 2.21%. It was a decent quarter for the company, with a strong top line growth but a decline in gross margin.

C3.ai had the weakest performance against analyst estimates and weakest full year guidance update in the group. The stock is down 14.7% since the results and currently trades at $45.26.

Read our full analysis of C3.ai's results here.

Domo (NASDAQ:DOMO)

Founded by Josh James after selling his former business Omniture to Adobe, Domo provides business intelligence software that allows managers to access and visualize critical business metrics in real-time, using their smartphones.

Domo reported revenues of $62.8 million, up 22.8% year on year, beating analyst expectations by 3.22%. It was a decent quarter for the company, with a solid beat of analyst estimates.

Domo had the slowest revenue growth among the peers. The stock is down 10.3% since the results and currently trades at $87.65.

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

Snowflake (NYSE:SNOW)

Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.

Snowflake reported revenues of $272.1 million, up 104% year on year, beating analyst expectations by 6.01%. It was a very strong quarter for the company, with an exceptional revenue growth.

Snowflake pulled off the fastest revenue growth among the peers. The company added 12 enterprise customers paying more than $1m annually to a total of 116. The stock is up 17% since the results and currently trades at $331.82.

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

The author has no position in any of the stocks mentioned