Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q3 now behind us, let’s have a look at SEMrush (NYSE:SEMR) 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 Q3; on average, revenues beat analyst consensus estimates by 1.53%, while on average next quarter revenue guidance was 2.56% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but sales and marketing software stocks held their ground better than others, with the share prices up 9.63% since the previous earnings results, on average.
SEMrush (NYSE:SEMR)
Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software as a service platform that helps companies optimize their search engine and content marketing efforts.
SEMrush reported revenues of $65.7 million, up 33.5% year on year, beating analyst expectations by 2.84%. It was a mixed quarter for the company, with strong top line growth but underwhelming revenue guidance for the next quarter.
The stock is down 27.7% since the results and currently trades at $8.30.
Is now the time to buy SEMrush? Access our full analysis of the earnings results here, it's free.
Best Q3: Zeta (NYSE:ZETA)
Co-Founded by former Apple CEO, John Scully, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Zeta reported revenues of $152.2 million, up 32.2% year on year, beating analyst expectations by 7.94%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and solid top line growth.
Zeta pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 5.72% since the results and currently trades at $8.87.
Is now the time to buy Zeta? Access our full analysis of the earnings results here, it's free.
Slowest Q3: AppLovin (NASDAQ:APP)
Co-founded by Adam Foroughi who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is a provider of marketing and monetization tools for mobile app developers and also operates a portfolio of mobile games.
AppLovin reported revenues of $713 million, down 1.9% year on year, missing analyst expectations by 2.07%. It was a weak quarter for the company, with full year guidance missing analysts' expectations and declining revenue.
The stock is down 21.7% since the results and currently trades at $10.74.
Read our full analysis of AppLovin's results here.
BigCommerce (NASDAQ:BIGC)
Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores.
BigCommerce reported revenues of $72.3 million, up 22.1% year on year, beating analyst expectations by 3.97%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.
The stock is down 25.8% since the results and currently trades at $9.82.
Read our full, actionable report on BigCommerce here, it's free.
LiveRamp (NYSE:RAMP)
Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) provides software as a service that helps companies better target their marketing by merging offline and online data about their customers.
LiveRamp reported revenues of $147 million, up 15.5% year on year, beating analyst expectations by 2.6%. It was a decent quarter for the company, with accelerating customer growth but a decline in net revenue retention rate.
The company added 2 enterprise customers paying more than $1m annually to a total of 92. The stock is up 54.8% since the results and currently trades at $24.16.
Read our full, actionable report on LiveRamp here, it's free.
The author has no position in any of the stocks mentioned