The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how data analytics stocks fared in Q2, starting with MicroStrategy (NASDAQ:MSTR).
Organizations generate a lot of data that is stored in silos, often in incompatible formats, making it slow and costly to extract actionable insights, which in turn drives demand for modern cloud-based data analysis platforms that can efficiently analyze the siloed data.
The 6 data analytics stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.
Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.
Luckily, data analytics stocks have performed well with share prices up 32.5% on average since the latest earnings results.
Weakest Q2: MicroStrategy (NASDAQ:MSTR)
Founded in 1989 with an initial contract with DuPoint, MicroStrategy (NASDAQ:MSTR) started as a data mining and business intelligence software platform, but in 2020, the company made waves by investing heavily in Bitcoin.MicroStrategy reported revenues of $111.4 million, down 7.4% year on year. This print fell short of analysts’ expectations by 8.6%. Overall, it was a disappointing quarter for the company with a miss of analysts’ EBITDA and billings estimates.
“After yet another successful quarter for our bitcoin strategy, MicroStrategy today holds 226,500 bitcoins reflecting a current market value 70% higher than our cost basis. We remain laser focused on our Bitcoin development strategy and intend to continue to achieve positive “BTC Yield,” which is a new KPI that we are introducing, targeting 4-8% annually, over each of the next three years.
MicroStrategy delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 40.7% since reporting and currently trades at $212.75.
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Best Q2: Palantir (NYSE:NYSE:PLTR)
Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.Palantir reported revenues of $678.1 million, up 27.2% year on year, outperforming analysts’ expectations by 3.9%. The business had a very strong quarter with an impressive beat of analysts’ billings and EBITDA estimates.
Palantir pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 78.5% since reporting. It currently trades at $43.01.
Health Catalyst (NASDAQ:HCAT)
Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ:HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs.Health Catalyst reported revenues of $75.9 million, up 3.7% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a mixed quarter as it posted a decline in its gross margin.
Health Catalyst delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 46.9% since the results and currently trades at $8.08.
Domo (NASDAQ:DOMO)
Founded by Josh James after selling his former business Omniture to Adobe (NASDAQ:ADBE), Domo (NASDAQ:DOMO) provides business intelligence software that allows managers to access and visualize critical business metrics in real-time, using their smartphones.Domo reported revenues of $78.41 million, down 1.6% year on year. This print beat analysts’ expectations by 2.4%. Overall, it was a strong quarter as it also logged optimistic earnings guidance for the next quarter and an impressive beat of analysts’ EBITDA estimates.
The stock is down 4% since reporting and currently trades at $7.40.
Amplitude (NASDAQ:AMPL)
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.Amplitude reported revenues of $73.3 million, up 8.2% year on year. This result beat analysts’ expectations by 1.8%. It was a strong quarter as it also recorded an impressive beat of analysts’ billings and EBITDA estimates.
The company added 254 customers to reach a total of 3,224. The stock is up 10.4% since reporting and currently trades at $8.80.
This content was originally published on Stock Story
