The end of earnings season is always a good time to take a step back and look at who’s excelling (and who’s not so good). Let’s take a look at how sales and marketing software stocks fared in the second quarter, starting with Sprinklr (NYSE:CXM).
The Internet and its exploding amount of data have changed the way companies interact with, market to, and transact with their customers. Personalization, e-commerce, targeted advertising and data-driven sales teams are now important to modern businesses, and sales and marketing software providers are becoming the tools for evolving customer interactions.
The 23 sales and marketing software stocks we track reported a mixed second quarter. As a group, revenues exceeded analyst consensus expectations by 1.2%, while revenue expectations for the next quarter were in line.
The Fed cut its policy rate by 50 basis points (half a percent) in September 2024, the first in about four years. This marks the end of the most targeted anti-inflation campaign since the 1980s. While the CPI (inflation) numbers have been supportive lately, the employment measures have turned out to be almost worrisome. Markets will assess whether the timing of this rate cut (and more potential ones in 2024 and 2025) is ideal to support the economy or a bit too late for a macro that has already cooled too much.
Fortunately, sales and marketing software stocks have been resilient, with share prices up an average of 6.7% since the last earnings results.
Sprinklr (NYSE:CXM)
Initially focused solely on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.
Sprinklr reported revenue of $197.2 million, up 10.5% year over year. This print exceeded analyst expectations by 1.5%. Despite the revenue growth, it was still a mixed quarter for the company with strong sales expectations for next quarter but slowing growth among major customers.
“In the second quarter, we continued to grow our customer base with our industry-recognized AI-powered platform and achieved our seventh consecutive quarter of free cash flow. As we work through ongoing market challenges, we are taking decisive steps to strengthen our foundation. Despite these challenges, we believe Sprinklr is uniquely positioned to help large global enterprises leverage the power of AI in the front office. unlock and deploy, as evidenced by the many global deals won this quarter across our product suites,” said Ragy Thomas, Founder and Co-CEO of Sprinklr.
Unsurprisingly, the stock has fallen 17.1% since reporting and is currently trading at $7.12.
Read our full report on Sprinklr here, it’s free.
Best Second Quarter: Zeta (NYSE:ZETA)
Zeta Global (NYSE:ZETA), co-founded by former Apple CEO John Scully, provides software and data analytics tools that help companies sell their products to billions of customers.
Zeta reported revenue of $227.8 million, up 32.6% year over year, beating analyst expectations by 7.2%. The company had an exceptional quarter with an impressive return on analyst expectations and optimistic revenue expectations for the next quarter.
Zeta achieved the highest analyst profit forecast among its peers. The market seems pleased with the results, as the stock is up 51.8% since reporting. It is currently trading at $32.60.
Is Now the Time to Buy Zeta? See our full analysis of earnings results here. It’s free.
Weakest Second Quarter: PubMatic (NASDAQ:PUBM)
Founded in 2006 as an online advertising platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.
PubMatic reported revenue of $67.27 million, up 6.2% year over year, falling 4.1% short of analyst expectations. It was a disappointing quarter as revenue expectations for the next quarter were disappointing.
As expected, the stock has fallen 24.1% since the results and is currently trading at $14.88.
Read our full analysis of PubMatic’s results here.
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 allows companies to access, manage and share sales information. .
Salesforce reported revenue of $9.33 billion, up 8.4% year over year. This figure was in line with analyst expectations. However, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is up 12.5% since reporting and is currently trading at $291.49.
Read our full, actionable report on Salesforce here. It’s free.
Wix (NASDAQ:WIX)
Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy-to-use website building platform.
Wix reported revenue of $435.7 million, up 11.7% year over year. This figure was in line with analyst expectations. That aside, it was a satisfying quarter as it also showed solid improvement in analyst expectations, but full-year revenue expectations fell short of analyst expectations.
The stock is flat since reporting and is currently trading at $157.93.
Read our full, actionable report on Wix here. It’s free.
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