To wrap up the second quarter results, we look at the numbers and key takeaways for the data and analytics software stocks, including C3.ai (NYSE:AI) and its peers.
Data is the lifeblood of the internet and software, and its importance to businesses continues to grow. Tracking sensors, ubiquitous mobile devices, and every action in every app are producing an explosion of analysable data that is increasingly stored in public cloud environments. This is driving demand for a variety of software solutions, from databases to analytics software, that allow companies to derive actionable insights from the data to better understand customer preferences, supply chains and forecasts at increasingly granular levels to increase their competitive advantage.
The fourteen data and analytics software stocks we track reported a satisfying second quarter. As a group, revenues exceeded analyst consensus expectations by 1.1%, while revenue expectations for the next quarter were in line.
The big picture is that the Federal Reserve has a dual mandate: inflation and employment. The former was at a high temperature in 2021 and 2022, but has recently cooled towards the central bank’s 2% target. This prompted the Fed to cut its policy rate by 50 basis points (half a percent) in September 2024. Given recent employment data suggesting the US economy could be faltering, markets will assess whether these rate cuts and future cuts (the Fed indicated more to come in 2024 and 2025) are the right moves at the right time, or whether they are too little or too late for a macro that has already cooled down.
Fortunately, data and analytics software stocks have performed well, with share prices up an average of 17.8% since the last earnings results.
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) offers software that allows organizations to easily add artificial intelligence technology to their applications.
C3.ai reported revenue of $87.21 million, up 20.5% year over year. This print was in line with analyst expectations, and overall it was a strong quarter for the company with an impressive showing of analyst EBITDA and billing estimates.
“We had a solid start to the fiscal year, with rising demand for Enterprise AI driving our sixth consecutive quarter of accelerating revenue growth,” said Thomas M. Siebel, Chairman and CEO of C3 AI.
Interestingly, the stock is up 9.8% since reporting and is currently trading at $25.27.
Is Now the Time to Buy C3.ai? See our full analysis of earnings results here. It’s free.
Palantir (NYSE:PLTR), founded by Peter Thiel after watching U.S. defense organizations struggle in the aftermath of the 2001 terrorist attacks, offers a software-as-a-service platform that helps government agencies and large corporations use data to make better decisions to take.
Palantir reported revenue of $678.1 million, up 27.2% year over year, beating analyst expectations by 3.9%. The company had a very strong quarter with an impressive return on analyst expectations and EBITDA estimates.
Palantir achieved the highest full-year forecast increase among its peers. The market seems pleased with the results, as the stock is up 77.8% since reporting. It is currently trading at $42.83.
Is Now the Time to Buy Palantir? See our full analysis of earnings results here. It’s free.
Founded in 1989 with an initial contract with DuPoint, MicroStrategy (NASDAQ:MSTR) started out as a data mining and business intelligence software platform, but in 2020 the company made waves by investing heavily in Bitcoin.
MicroStrategy reported revenue of $111.4 million, down 7.4% year over year, falling 8.6% short of analyst expectations. It was a disappointing quarter as analysts’ EBITDA estimates were missed.
MicroStrategy had the weakest performance compared to analyst estimates and the slowest revenue growth in the group. Interestingly, the stock is up 44.8% since the results and is currently trading at $218.96.
Read our full analysis of MicroStrategy’s results here.
Domo (NASDAQ:DOMO), founded by Josh James after he sold his former company Omniture to Adobe, provides business intelligence software that allows managers to access and visualize critical business data in real time using their smartphones.
Domo reported revenue of $78.41 million, down 1.6% year over year. This result exceeded analyst expectations by 2.4%. It was a strong quarter as there were also optimistic earnings expectations for the next quarter.
The stock is down 3.8% since reporting and is currently trading at $7.42.
Read our full, actionable report on Domo here. It’s free.
Samsara (NYSE:IOT), one of the few publicly traded companies where Marc Andreessen is a board member, provides software and hardware to track industrial equipment, assets and fleets.
Samsara reported revenue of $300.2 million, up 36.9% year over year. This number exceeded analyst expectations by 3.7%. Overall, it was an exceptional quarter as it also delivered an impressive return on analyst expectations and optimistic earnings expectations for the next quarter.
Samsara achieved the fastest sales growth among its peers. The stock is up 20.2% since reporting and is currently trading at $46.60.
Read our full, actionable report on Samsara here. It’s free.
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