Spotting Winners: Sprinklr (NYSE:CXM) And Sales And Marketing Software Stocks In Q2

As we reflect back on the just completed Q2 sales and marketing software sector earnings season, we dig into the relative performance of Sprinklr (NYSE:CXM) 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 24 sales and marketing software stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 2.26%, while on average next quarter revenue guidance was 0.55% under consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows and while some of the sales and marketing software stocks have fared somewhat better than others, they have not been spared, with share prices declining 5.62% since the previous earnings results, on average.

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 $178.5 million, up 18.5% year on year, beating analyst expectations by 2.89%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but decelerating growth in large customers.

“We had another solid quarter across the board with strength in Sprinklr Service product suite and a record level of profitability. Our teams continue to innovate across our unified-CXM platform with new features and enhancements to our AI+ strategy. We’re encouraged by customers’ growing demand to unify their front-office teams and technology leading to better customer experiences,” said Ragy Thomas, Founder and CEO at Sprinklr.

The stock is down 10.7% since the results and currently trades at $14.13.

Is now the time to buy Sprinklr? Access our full analysis of the earnings results here, it's free.

Best Q2: 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 $750.2 million, down 3.36% year on year, beating analyst expectations by 3.57%. It was an impressive quarter for the company, with optimistic revenue guidance for the next quarter and a significant improvement in its gross margin.

The stock is up 37.4% since the results and currently trades at $40.4.

Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.

Weakest Q2: GoDaddy (NYSE:GDDY)

Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website.

GoDaddy reported revenues of $1.05 billion, up 3.21% year on year, missing analyst expectations by 0.61%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.

The stock is down 1.77% since the results and currently trades at $74.38.

Read our full analysis of GoDaddy's results here.

Zeta (NYSE:ZETA)

Co-Founded by former Apple CEO, John Scully, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.

Zeta reported revenues of $171.8 million, up 25.1% year on year, beating analyst expectations by 6.08%. It was a very strong quarter for the company, with accelerating growth in large customers. Revenue guidance for the next quarter and full year also exceeded Wall Street's expectations.

Zeta pulled off the strongest analyst estimates beat and highest full year guidance raise among the peers. The company added 14 enterprise customers paying more than $100,000 annually to a total of 425. The stock is up 1.67% since the results and currently trades at $8.5.

Read our full, actionable report on Zeta here, it's free.

SEMrush (NYSE:SEMR)

Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software as a service platform that helps companies optimize their search engine and content marketing efforts.

SEMrush reported revenues of $74.7 million, up 19.3% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.

The company added 4,000 customers to a total of 104,000. The stock is down 18.8% since the results and currently trades at $8.27.

Read our full, actionable report on SEMrush here, it's free.

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The author has no position in any of the stocks mentioned