Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Sprinklr (NYSE:CXM) and the best and worst performers in the sales and marketing software industry.
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 22 sales and marketing software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.6% above.
Thankfully, share prices of the companies have been resilient as they are up 7.8% on average since the latest earnings results.
Weakest Q3: 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 $200.7 million, up 7.7% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a slower quarter for the company with full-year EPS guidance missing analysts’ expectations.
“Sprinklr’s third quarter results delivered a 12% non-GAAP operating margin and positive free cash flow,” said Rory Read, Sprinklr’s President and CEO.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $8.64.
Is now the time to buy Sprinklr? Find out by reading the original article on StockStory, it’s free.
Best Q3: Zeta (NYSE:ZETA)
Co-founded by former Apple (NASDAQ:AAPL) CEO John Scully, Zeta Global (NYSE:NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.Zeta reported revenues of $268.3 million, up 42% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
Zeta pulled off the fastest revenue growth and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 51.5% since reporting. It currently trades at $17.83.
Salesforce (NYSE:CRM)
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 $9.44 billion, up 8.3% year on year, exceeding analysts’ expectations by 1%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations.
The stock is flat since the results and currently trades at $334.59.
Sprout Social (NASDAQ:SPT)
Founded by Justyn Howard and Aaron Rankin in 2010, Sprout Social (NASDAQ:SPT) provides a software as a service platform that companies can use to schedule and respond to posts on major social media networks like Twitter, Facebook (NASDAQ:META), Instagram, Youtube and LinkedIn.Sprout Social reported revenues of $102.6 million, up 20% year on year. This number surpassed analysts’ expectations by 0.6%. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
The company added 153 enterprise customers paying more than $10,000 annually to reach a total of 9,119. The stock is down 2.4% since reporting and currently trades at $30.26.
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 $97.41 million, up 23.7% year on year. This print topped analysts’ expectations by 0.7%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but decelerating customer growth.
The company added 1,000 customers to reach a total of 117,000. The stock is down 17.2% since reporting and currently trades at $11.88.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
This content was originally published on Stock Story
