Wrapping up Q3 earnings, we look at the numbers and key takeaways for the data analytics stocks, including Palantir (NYSE:PLTR) and its peers.
Organizations generate a lot of data that is stored in silos, often in incompatible formats, making it slow and costly to extract actionable insights, which in turn drives demand for modern cloud-based data analysis platforms that can efficiently analyze the silo-ed data.
The 5 data analytics stocks we track reported a decent Q3; on average, revenues beat analyst consensus estimates by 4.2%, while on average next quarter revenue guidance was 1.99% above consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but data analytics stocks held their ground better than others, with the share prices up 6.99% since the previous earnings results, on average.
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 $477.8 million, up 21.8% year on year, in line with analyst expectations. It was a weak quarter for the company with a decline in gross margin and revenue guidance for the next quarter below expectations.
"We beat expectations for revenue growth this quarter and expect to have a strong finish to the year, even in the face of the continued strength of the U.S. dollar," said Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies Inc.
Palantir delivered the weakest performance against analyst estimates of the whole group. The stock is down 17.6% since the results and currently trades at $6.53.
Is now the time to buy Palantir? Access our full analysis of the earnings results here, it's free.
Best Q3: Alteryx (NYSE:AYX)
Initially created as a way to organise census data for the government, Alteryx (NYSE:AYX) provides software that helps companies automate and analyse their internal data processes.
Alteryx reported revenues of $215.7 million, up 74.6% year on year, beating analyst expectations by 12.2%. It was an incredible quarter for the company, with an impressive beat of analyst estimates and very optimistic guidance for the next quarter.
Alteryx scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 44 customers to a total of 8,340. The stock is up 5.47% since the results and currently trades at $50.73.
Is now the time to buy Alteryx? Access our full analysis of the earnings results here, it's free.
Slowest Q3: Health Catalyst (NASDAQ:HCAT)
Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ:HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs.
Health Catalyst reported revenues of $68.3 million, up 10.7% year on year, beating analyst expectations by 2.33%. It was a weak quarter for the company, with a decline in gross margin and underwhelming revenue guidance for the next quarter.
Health Catalyst had the slowest revenue growth in the group. The stock is up 68% since the results and currently trades at $10.84.
Founded by Josh James after selling his former business Omniture to Adobe, Domo (NASDAQ: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 $79 million, up 21.4% year on year, beating analyst expectations by 3.47%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.
Domo had the weakest full year guidance update among the peers. The stock is down 6.22% since the results and currently trades at $13.96.
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.
Amplitude reported revenues of $61.6 million, up 35.4% year on year, beating analyst expectations by 2.36%. It was a decent quarter for the company, with strong revenue growth and guidance for the next quarter inline with analysts' expectations.
The company added 77 customers to a total of 1,913. The stock is down 14.6% since the results and currently trades at $12.66.
The author has no position in any of the stocks mentioned