As Q4 earnings season comes to a close, it’s time to take stock of this quarters’ best and worst performers amongst the sales and marketing software stocks, 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 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. Tech stocks have been under pressure since the end of last year, but sales and marketing software stocks held their ground better than others, with share price down 6.23% since earnings, on average.
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 4.72% since the results and currently trades at $6.21.
Is now the time to buy Yext? 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 improvement in gross margin and full-year guidance above analysts' estimates.
Sprinklr delivered 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 21.4% since the results and currently trades at $13.81.
Is now the time to buy Sprinklr? Access our full analysis of the earnings results here, it's free.
Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.
ON24 reported revenues of $52 million, down 2.35% year on year, in line with analyst expectations. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
ON24 had the weakest full year guidance update in the group. The stock is down 14.2% since the results and currently trades at $13.36.
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 $369.3 million, up 46.5% year on year, beating analyst expectations by 3.29%. It was a strong quarter for the company, with an exceptional revenue growth and impressive revenue guidance for the next year.
The company added 7,298 customers to a total of 135,442. The stock is down 14.9% since the results and currently trades at $454.60.
Launched in 1999 from a rented one-bedroom apartment in San Francisco by Marc Benioff and his three co-founders, Salesforce (NYSE:CRM) is a software as a service platform that helps companies access, manage and share sales information.
Salesforce reported revenues of $7.32 billion, up 25.9% year on year, beating analyst expectations by 1.16%. It was a decent quarter for the company, with a strong sales guidance for the next quarter.
The stock is down 6.48% since the results and currently trades at $195.45.
The author has no position in any of the stocks mentioned