The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Semrush (NYSE:SEMR) and the rest of the sales and marketing software stocks fared in Q3.
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 21 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.
In light of this news, share prices of the companies have held steady as they are up 5% on average since the latest earnings results.
Semrush (NYSE:SEMR)
Born from the need to make sense of the complex digital marketing landscape, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.
Semrush reported revenues of $112.1 million, up 15.1% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 57.9% since reporting and currently trades at $11.86.
Is now the time to buy Semrush? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $7.72.
Is now the time to buy Sprinklr? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, exceeding analysts’ expectations by 1.2%. Still, it was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Upland Software delivered the slowest revenue growth in the group. As expected, the stock is down 20.1% since the results and currently trades at $1.54.
Read our full analysis of Upland Software’s results here.
LiveRamp (NYSE:RAMP)
Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.
LiveRamp reported revenues of $199.8 million, up 7.7% year on year. This result surpassed analysts’ expectations by 1%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ annual recurring revenue estimates.
The company added 5 enterprise customers paying more than $1 million annually to reach a total of 132. The stock is up 9% since reporting and currently trades at $29.88.
Read our full, actionable report on LiveRamp here, it’s free for active Edge members.
HubSpot (NYSE:HUBS)
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE:HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
HubSpot reported revenues of $809.5 million, up 20.9% year on year. This print beat analysts’ expectations by 3%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance slightly topping analysts’ expectations.
The company added 10,898 customers to reach a total of 278,880. The stock is down 14.3% since reporting and currently trades at $398.05.
Read our full, actionable report on HubSpot here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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