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 SEMrush (NYSE:SEMR) 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 26 sales and marketing software stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.76%, while on average next quarter revenue guidance was 1.09% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 , but sales and marketing software stocks held their ground better than others, with the share prices up 4.14% since the previous earnings results, on average.
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 $68.8 million, up 28% year on year, beating analyst expectations by 1.79%. It was a slower quarter for the company, with underwhelming guidance for the next year and decelerating customer growth.
The stock is up 21.3% since the results and currently trades at $9.64.
Read our full report on SEMrush here, it's free.
Best Q4: Shopify (NYSE:SHOP)
Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) provides a software platform for building and operating e-commerce businesses.
Shopify reported revenues of $1.73 billion, up 25.7% year on year, beating analyst expectations by 5.11%. It was a strong quarter for the company, with a decent beat of analyst estimates and solid revenue growth.
The stock is down 9.69% since the results and currently trades at $48.21.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $72.4 million, up 11.6% year on year, missing analyst expectations by 1.24%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
The stock is down 26.4% since the results and currently trades at $8.35.
Read our full analysis of BigCommerce's results here.
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 $469.7 million, up 27.2% year on year, beating analyst expectations by 5.3%. It was a mixed quarter for the company, with a solid beat of analyst estimates but underwhelming guidance for the next year.
The company added 8,481 customers to a total of 167,386. The stock is up 14.9% since the results and currently trades at $417.07.
Read our full, actionable report on HubSpot here, it's free.
While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net.
VeriSign reported revenues of $369.2 million, up 8.49% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth.
The stock is up 2.42% since the results and currently trades at $213.06.
Read our full, actionable report on VeriSign here, it's free.
The author has no position in any of the stocks mentioned