Earnings results often give us a good indication what direction will the company will take in the months ahead. With Q4 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 23 sales and marketing software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.52%, while on average next quarter revenue guidance was 0.05% above consensus. The whole tech sector has been facing a sell-off since late last year , but sales and marketing software stocks held their ground better than others, with share price down 3.94% since earnings, 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 $53.7 million, up 47.4% year on year, beating analyst expectations by 3.12%. It was a decent quarter for the company, with an exceptional revenue growth but underwhelming guidance for the next year.
“2021 was a historic year for Semrush, as we completed a successful IPO and grew revenue by more than 50%. In the process we added nearly fifteen thousand paid customers while also delivering strong growth in average revenue per customer. I want to extend my thanks to all our employees and partners who helped make it possible,” said Oleg Shchegolev, CEO and Co-Founder of Semrush.
The stock is down 23.2% since the results and currently trades at $11.41.
Is now the time to buy SEMrush? Access our full analysis of the earnings results 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 an increase in gross margin and full-year revenue guidance above analysts' estimates.
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 26.5% since the results and currently trades at $14.39.
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 slower customer growth and underwhelming guidance for the next year.
The stock is up 7.25% since the results and currently trades at $6.36.
Previously known as SurveyMonkey, Momentive (NASDAQ:MNTV) offers software as a service that makes it easy for users create, manage and distribute online surveys.
Momentive reported revenues of $114.7 million, up 20.2% year on year, in line with analyst expectations. It was a decent quarter for the company, with accelerating customer growth.
The company added 20,900 customers to a total of 883,100. The stock is down 20% since the results and currently trades at $17.85.
Founded in 2006, as an online ad platform focused on ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.
PubMatic reported revenues of $75.5 million, up 34.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with a deceleration in net revenue retention rate and an underwhelming revenue guidance for the next quarter.
The stock is down 16.6% since the results and currently trades at $25.50.
The author has no position in any of the stocks mentioned