Quarterly results are a good time to check a company’s progress, especially compared to peers in the same sector. Today we look at Sprout Social (NASDAQ:SPT) and the best and worst performers in the sales and marketing software industry.
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 22 sales and marketing software stocks we track reported a satisfying second quarter. As a group, revenues exceeded analyst consensus expectations by 2.2%, while revenue expectations for the next quarter were in line.
Amid this news, companies’ stock prices have gone through a rough patch. On average, they are down 5.9% since the last earnings results.
Born from the recognition that companies needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ:SPT) offers a comprehensive software platform that helps companies manage, analyze and optimize their presence on various social media networks.
Sprout Social reported revenue of $111.8 million, up 12.5% year over year. This print exceeded analyst expectations by 0.8%. Despite the revenue growth, it was still a mixed quarter for the company, with a solid gain in analyst EBITDA estimates, but earnings expectations for the next quarter fell significantly short of analyst expectations.
“Our team delivered strong results in the second quarter, highlighted by 12% revenue growth and solid profitability,” said Ryan Barretto, CEO of Sprout Social.
Shoot social total revenue
Unsurprisingly, the stock has fallen 33.3% since reporting and is currently trading at $10.70.
Read our full report on Sprout Social here, it’s free for active Edge members.
Started in 2004 with just three people selling snowboards online, Shopify (NYSE:SHOP) offers a comprehensive platform that helps sellers of all sizes build, manage and grow their businesses across multiple sales channels.
Shopify reported revenue of $2.68 billion, up 31.1% year over year, and beat analyst expectations by 5.2%. The company had a stunning quarter with a solid improvement in analyst expectations for gross merchandise volume and an impressive improvement in analyst EBITDA estimates.
Shopify’s total revenue
Shopify delivered the highest analyst estimates that beat its peers. The market seems pleased with the results, as the stock is up 19.5% since reporting. It is currently trading at $151.94.
Is Now the Time to Buy Shopify? See our full analysis of the revenue results here. This is free for active Edge members.
Born from a need to understand the complex digital marketing landscape, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps businesses improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.
Semrush reported revenue of $108.9 million, up 19.7% year over year, in line with analyst expectations. It was a slower quarter, as full-year revenue expectations lagged slightly behind analyst expectations.
As expected, the stock has fallen 23.6% since the results and is currently trading at $7.07.
Read our full analysis of Semrush’s results here.
Built as an alternative to walled garden advertising ecosystems, The Trade Desk (NASDAQ:TTD) offers a cloud-based platform that helps advertisers and agencies plan, manage and optimize digital advertising campaigns across multiple channels and devices.
The Trade Desk reported revenue of $694 million, up 18.7% year over year. This figure exceeded analyst expectations by 1.2%. More broadly, it was a mixed quarter, as it also saw a solid improvement in analyst EBITDA estimates, but a miss in analyst billing estimates.
The stock has fallen 42.2% since reporting and is currently trading at $51.04.
Read our full, actionable report on The Trade Desk here. It’s free for active Edge members.
With a proprietary AI engine that processes 450 million data points every day across more than 30 digital channels, Sprinklr (NYSE:CXM) offers cloud-based software that enables enterprises to manage customer experiences across social media, messaging, chat and voice channels.
Sprinklr reported revenue of $212 million, up 7.5% year over year. This result exceeded analyst expectations by 3.2%. It was a very strong quarter as it also delivered an impressive showing of analyst EBITDA estimates and full-year earnings per share expectations, which exceeded analyst expectations.
The stock is down 13.5% since reporting and is currently trading at $7.46.
Read our full, actionable report on Sprinklr here, it’s free for active Edge members.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady downward trend, returning to the 2% sweet spot. Fortunately (miraculously for some) all this tightening hasn’t sent the economy into recession, so here we are, cautiously celebrating a soft landing. The icing on the cake? Recent rate cuts (half a point in September 2024, a quarter in November) have kept markets afloat, especially after Trump’s victory in November lit a fire under the major indices and sent them to record highs. There’s still plenty to think about, though: tariffs, corporate tax cuts and what 2025 could mean for the economy.
Do you want to invest in winners with rock-solid fundamentals? Check out our 9 best stocks that are beating the market and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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