As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at sales and marketing software stocks, starting with Upland Software (NASDAQ:UPLD).
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 20 sales and marketing software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.7% since the latest earnings results.
Weakest Q3: Upland Software (NASDAQ:UPLD)
Operating under the mantra "land and expand," Upland Software (NASDAQ:UPLD) provides cloud-based applications that help organizations manage projects, workflows, and digital transformation across various business functions.
Upland Software reported revenues of $50.53 million, down 24.2% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a softer quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.
"With our Q3 results, we are pleased to report continued positive core organic growth, and a significant expansion of our Adjusted EBITDA margin,” said Jack McDonald, Upland’s Chairman and Chief Executive Officer.
Upland Software delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 28.9% since reporting and currently trades at $1.37.
Read our full report on Upland Software here, it’s free.
Best Q3: Sprinklr (NYSE:CXM)
With a proprietary AI engine processing 450 million data points daily across 30+ digital channels, Sprinklr (NYSE:CXM) provides cloud-based software that helps large enterprises manage customer experiences across social, messaging, chat, and voice channels.
Sprinklr reported revenues of $219.1 million, up 9.2% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.8% since reporting. It currently trades at $6.35.
Is now the time to buy Sprinklr? Access our full analysis of the earnings results here, it’s free.
DoubleVerify (NYSE:DV)
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
DoubleVerify reported revenues of $188.6 million, up 11.2% year on year, falling short of analysts’ expectations by 0.8%. It was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations and a slight miss of analysts’ revenue estimates.
DoubleVerify delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.1% since the results and currently trades at $11.09.
Read our full analysis of DoubleVerify’s results here.
PubMatic (NASDAQ:PUBM)
Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ:PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency.
PubMatic reported revenues of $67.96 million, down 5.3% year on year. This number surpassed analysts’ expectations by 6.1%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
PubMatic pulled off the biggest analyst estimates beat among its peers. The stock is down 2.7% since reporting and currently trades at $7.45.
Read our full, actionable report on PubMatic here, it’s free.
Sprout Social (NASDAQ:SPT)
Born from the recognition that businesses needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ:SPT) provides a comprehensive software platform that helps businesses manage, analyze, and optimize their presence across various social media networks.
Sprout Social reported revenues of $115.6 million, up 12.6% year on year. This print topped analysts’ expectations by 0.6%. It was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
The company added 239 enterprise customers paying more than $10,000 annually to reach a total of 9,756. The stock is down 15.4% since reporting and currently trades at $8.67.
Read our full, actionable report on Sprout Social here, it’s free.
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