Looking back on sales and marketing software stocks' Q4 earnings, we examine this quarter's best and worst performers, including Yext (NYSE:YEXT) 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 weaker Q4; on average, revenues beat analyst consensus estimates by 1.76%, while on average next quarter revenue guidance was 1.09% 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 4.14% since the previous earnings results, on average.
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 $101.9 million, flat year on year, beating analyst expectations by 1.53%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
"We're proud of our performance in the fourth quarter, and we demonstrated continued operating efficiency and our second consecutive quarter of non-GAAP profitability," said Michael Walrath, CEO and Chair of the Board.
The stock is up 7.44% since the results and currently trades at $9.1.
Read our full report on Yext 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.
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 $702.3 million, down 11.5% year on year, beating analyst expectations by 1.71%. It was a weak quarter for the company, with declining revenue and a decline in gross margin.
AppLovin had the slowest revenue growth among the peers. The stock is up 29.1% since the results and currently trades at $16.4.
Read our full, actionable report on AppLovin here, it's free.
Braze (NASDAQ:BRZE)
Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.
Braze reported revenues of $98.7 million, up 40.1% year on year, beating analyst expectations by 3.05%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
Braze achieved the fastest revenue growth among the peers. The company added 55 customers to a total of 1,770. The stock is up 2.5% since the results and currently trades at $32.39.
Read our full, actionable report on Braze here, it's free.
The author has no position in any of the stocks mentioned