Sales And Marketing Software Stocks Q3 Highlights: Sprinklr (NYSE:CXM)
Looking back on sales and marketing software stocks' Q3 earnings, we examine this quarter's best and worst performers, including 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 Q3; on average, revenues beat analyst consensus estimates by 2.4% while next quarter's revenue guidance was in line with consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but sales and marketing software stocks held their ground better than others, with the share prices up 15.1% on average since the previous earnings results.
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 $186.3 million, up 18.5% year on year, topping analyst expectations by 3.3%. 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 record levels of profitability supported by strength in our Sprinklr Service product suite. We're committed to helping customers achieve productivity gains across their front office through leveraging generative AI, turning vast amounts of unstructured data into actionable insights, and unifying their customer-facing teams that result in superior customer experiences,” said Ragy Thomas, Founder and CEO at Sprinklr.
The stock is down 26.6% since the results and currently trades at $12.26.
Read our full report on Sprinklr here, it's free.
Best Q3: 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 both a mobile game studio and provider of marketing and monetization tools for mobile app developers.
AppLovin reported revenues of $864.3 million, up 21.2% year on year, outperforming analyst expectations by 8.5%. It was a stunning quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' revenue estimates.
AppLovin delivered the biggest analyst estimates beat among its peers. The stock is up 1.2% since the results and currently trades at $40.63.
Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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 $101.2 million, up 1.9% year on year, falling short of analyst expectations by 1%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
Yext had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 21.7% since the results and currently trades at $5.49.
Read our full analysis of Yext's results here.
ON24 (NYSE:ONTF)
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 $39.22 million, down 17.6% year on year, surpassing analyst expectations by 3.3%. It was a very strong quarter for the company, with optimistic revenue guidance for the next quarter and full-year.
ON24 had the slowest revenue growth among its peers. The stock is up 9.3% since the results and currently trades at $7.04.
Read our full, actionable report on ON24 here, it's free.
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 $1.71 billion, up 25.5% year on year, surpassing analyst expectations by 2.6%. It was a very strong quarter for the company, with a significant improvement in its gross margin and a decent beat of analysts' revenue estimates.
The stock is up 66.6% since the results and currently trades at $81.3.
Read our full, actionable report on Shopify here, it's free.
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The author has no position in any of the stocks mentioned
