The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the sales and marketing software stocks have fared in Q2, starting with Yext (NYSE:YEXT).
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 15 sales and marketing software stocks we track reported a decent Q2; on average, revenues beat analyst consensus estimates by 3.52%, while on average next quarter revenue guidance was 2.07% above consensus. On average the share price was down 2.67% the day after the earnings.
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 $98.1 million, up 11.4% year on year, beating analyst expectations by 3.23%. It was a weaker quarter for the company, with a decline in gross margin and a slow revenue growth.
"We had a solid second quarter, driven by new customers and upsells," said Howard Lerman, Founder and CEO of Yext.
Yext delivered the slowest revenue growth of the whole group. The company added 100 customers to a total of 2,600. The stock is down 13% since the results and currently trades at $12.11.
Best Q2: Trade Desk (NASDAQ:TTD)
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place and target their online ads.
Trade Desk reported revenues of $279.9 million, up 100% year on year, beating analyst expectations by 6.52%. It was a very strong quarter for the company, with an exceptional revenue growth and an optimistic guidance for the next quarter.
Trade Desk pulled off the fastest revenue growth among its peers. The stock is down 1.77% since the results and currently trades at $82.50.
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Weakest Q2: Wix (NASDAQ:WIX)
Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.
Wix reported revenues of $316.4 million, up 34% year on year, beating analyst expectations by 1.52%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
The stock is down 25.1% since the results and currently trades at $194.13.
Founded in 2006 by three Danish friends who got tired of implementing complex old-school solutions, Zendesk (NYSE:ZEN) is a software as a service platform that makes it easier for companies to provide help and support to their customers.
Zendesk reported revenues of $318.2 million, up 29% year on year, missing analyst expectations by 0.72%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and an underwhelming revenue guidance for the next quarter.
Zendesk had the weakest performance against analyst estimates among the peers. The stock is down 14.3% since the results and currently trades at $129.
Founded in 2007 as DiscoveryOrg and renamed after a merger in 2019, ZoomInfo (NASDAQ:ZI) is a software as a service product that provides sales departments with access to a database of prospective clients.
ZoomInfo reported revenues of $174 million, up 56.8% year on year, beating analyst expectations by 7.09%. It was an impressive quarter for the company, with an exceptional revenue growth.
ZoomInfo pulled off the strongest analyst estimates beat among the peers. The company added 150 enterprise customers paying more than $100,000 annually to a total of 1,100. The stock is up 27.6% since the results and currently trades at $69.87.
The author has no position in any of the stocks mentioned