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 sales software stocks fared in Q3, starting with HubSpot (NYSE:HUBS).
Companies need to be able to interact with and sell to their customers as efficiently as possible. This reality coupled with the ongoing migration of enterprises to the cloud drives demand for cloud-based customer relationship management (CRM) software that integrates data analytics with sales and marketing functions.
The 4 sales software stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
Luckily, sales software stocks have performed well with share prices up 13.6% on average since the latest earnings results.
Best Q3: HubSpot (NYSE:HUBS)
Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet.HubSpot reported revenues of $669.7 million, up 20.1% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
HubSpot achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. The company added 10,074 customers to reach a total of 238,128. Unsurprisingly, the stock is up 29.7% since reporting and currently trades at $775.50.
Is now the time to buy HubSpot? Find out by reading the original article on StockStory, it’s free.
Freshworks (NASDAQ:FRSH)
Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses.Freshworks reported revenues of $186.6 million, up 21.5% year on year, outperforming analysts’ expectations by 2.8%. The business had a strong quarter with an impressive beat of analysts’ annual recurring revenue and EBITDA estimates.
Freshworks achieved the fastest revenue growth among its peers. The company added 615 enterprise customers paying more than $5,000 annually to reach a total of 22,359. The market seems happy with the results as the stock is up 43.6% since reporting. It currently trades at $18.79.
Slowest Q3: 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 such as leads.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.
Salesforce delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 3.8% since the results and currently trades at $344.41.
ZoomInfo (NASDAQ:ZI)
Founded in 2007 as DiscoveryOrg and renamed after a merger in 2019, ZoomInfo (NASDAQ:ZI) is a software as a service product that provides sales departments with access to a database of prospective clients.ZoomInfo reported revenues of $303.6 million, down 3.3% year on year. This print surpassed analysts’ expectations by 1.5%. Aside from that, it was a mixed quarter as it also logged full-year EPS guidance exceeding analysts’ expectations but decelerating growth in large customers.
ZoomInfo had the slowest revenue growth among its peers. The company added 12 enterprise customers paying more than $100,000 annually to reach a total of 1,809. The stock is down 22.5% since reporting and currently trades at $10.14.
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
HUBS) Impresses">